Why not earn a bit extra when you go shopping and make use of credit card cashback?
Credit cards that offer cashback are a good example of this. All you need to do is spend as you would normally and you receive a little back each time.
Will it cost me?
Not if you keep on top of things. Nearly all credit cards give you up to 59 days of interest-free borrowing. So pay off the card as soon as you receive the bill and it will cost you nothing.
The best credit card cashback deals?
Nationwide offer 0.5% interest on any purchase (made in £’s) and there is no limit to how much you can claim.
Other benefits include 0% interest on purchases for the first year and 0% on balance transfers over the same period. And if you make the transfer within the first three months there is no charge. Currently, the Nationwide Select card is only available to their current account holders. Swapping to Nationwide could earn you some free cash.
American Express offers a tiered cashback card. If you spend up to £5000 you receive 0.5% cashback. Spend £5001 or more and the cashback rises to 1%. And for the first three months, you will receive 5% up to a maximum of £100. Unlike the Nationwide card, there are no 0% transfer or purchase incentives. And one sticking point may be that you need to spend a minimum of £3000 a year to receive any cashback.
The Natwest Reward credit card earns you 0.5% on all your shopping. This increases to 1% in supermarkets (excluding their petrol stations) and you can earn 1% at MyRewards partners. The fee for this account is £24 per year, but it is free to Natwest Reward current account holders.
The Santander 1-2-3 credit card also offers tiered cashback. 1% for supermarket shopping, 2% for department store shopping and 3% for petrol and London transport. There is a handy calculator here to help you find out how much you can earn. There is a monthly fee of £3 for this card.
Some come with fees but offer more cashback. The most suitable card depends on how much you spend. If you’re spending large amounts, then the less bother an annual fee will be. However, there is no point spending £36 a year on a card to receive £35 in cashback.
Don’t forget that purchases with a credit card for anything between £100 – £30,000 will provide you with extra protection. If your item is faulty and the company won’t help, or if the item never reaches you, you can request a refund from your card company. This is all covered under Section 75 of the Credit Consumer Act. When you’re making major purchases, a credit card is always worth considering as you will not receive the same cover with a debit card. Visit uSwitch if you want to find other credit card cashback offers.
But using a credit card isn’t the only way to earn extra. Find out about cashback sites.