Cashback Credit Cards
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Cashback Credit Cards Want to get a better deal on your shopping? Keeping an eye out for discounts and vouchers is a great technique - but what if you could get money off every purchase you make?
That is the premise behind cash back credit cards, which award you a small percentage bonus - generally no more than 1 or 2 % - based on your spending each month or year. Its a very small amount comparitively, but if you spend a lot on your card it can add up.
Trouble is, of course, there's no such thing as a free lunch. Although it would be quite possible for card suppliers to swallow the cashback charge from the fees they already charge shops and retailers for card services, the reality is a cashback credit card - or indeed any other kind of reward card such as airmiles or nectar point cards - will undoubtably come paired with a higher APR interest rate. This doesn't neccessarily make them bad, but it does mean you need to be sure to pay off your account in full each month - as otherwise the increased interest will quickly counteract any earning you make in cashback!
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