When you visit our website, we may send you a cookie. To learn more, please refer to our Privacy Policy. By continuing to use our website, you agree to this.
By continuing, you agree to our Cookie Policy.
Home > Credit Cards > Credit Cards Guides > 5 tips for cashback cardholders

5 tips for cashback cardholders

Cashback credit cards save you money every time you use them to pay for purchases. They can save you up to 100 pounds a year. The top card gives you five per cent back for the first three months, and other cards give three per cent back on transport and fuel spending. You may think that with something this good, there has got to be a catch. Not really. If you exercise a little judgement when using cashback cards, they are a win/win deal. Here are five tips for getting the most out of your cashback card.

  1. The most important thing to remember is to pay off your cashback card in full every month. The best way to do this is with a direct debit from your bank account. This way, you don’t need to think about it. If you can’t pay it off every month, you will be charged interest. This could remove any cashback advantage, and worse, cost you money in the long run. Some cashback contracts don’t list pay-in-full as an option. You can write it in, and the company should agree, but it would be wise to call after a week or two to see that it worked. Remember to make sure you have enough in your bank account to cover the direct debit.

  2. When you have large purchases in the near future, you can use one of the cashback cards that offer introductory bonuses. The top card offers 100 pounds maximum cash back for the first three months. This could save you a lot of money if you are planning a holiday or need to do Christmas shopping. When the introductory time expires, you will still get a percentage of your spending back.

  3. Just because you are getting cash back doesn’t mean you should spend more than you need to. However, you should put all your normal spending on the card. Use it instead of cash, cheques and other credit and debit cards. Try to be aware of the balance between spending enough to get cash back and spending so much you can’t pay off the balance every month. You can even use it for work expenses, provided you ask your employer first. It is possible that the usually tax-free cash back could be seen as a taxable benefit, if you use it for work expenses, but even if it is, you are still ahead.

  4. Before you apply for a cashback card, do some research. There is no point in getting generous cash back for auto accessories and fuel if you don’t own a car or drive. Similarly, if you rarely shop in a certain store, you won’t gain much with a cashback card from that store. Also, some cards reward you more if you use them in certain places or for certain things such as holiday expenses. Make sure the card you get will give the benefits you want, and, if necessary, be sure to use it in the required places.

  5. Some credit card providers will give you more than one card on the same account. If the card has an annual fee, you only pay for one card, but you get two. You can get cards for a family member, and if they are used for daily expenses, the cash back will really start to mount up.

Credit card companies use cashback cards as an incentive to get more customers. They are basically sharing some of their commission to give you some cash back. They are all advertised to look great, and if they are used wisely, they can be great money earners.

Return to Top ▲Return to Top ▲