Cash Back Credit Cards
There are a number of different types of rewards based credit cards available in the UK these days, and this includes cash back credit cards, where cardholders can enjoy earning cash back for every pound that is spent on the card.
These cards are offered by many card providers, and the cash back levels offered can vary, so it is a good idea to browse and compare a range of cash back credit cards.
Basically with cash back credit cards you earn cash back for every pound spent on purchases – this does not apply to cash transactions or withdrawals so you should avoid making these.
The levels of cash back earned are quite low, and can be as low as 0.5%. However, some card providers run special offers where you can earn a higher level of cash back for a limited period or when you shop at certain places.
You should not opt for a cash back credit card if you like to spread your repayments on the balance, as otherwise you will be charged high amounts of interest that will strip away the benefits of any cash back earned.
These cards are best suited to those that use their credit card regularly, thus earning maximum cash back, and repay the balance in full each month, thus avoiding counteracting the cash back earned by having to pay interest.