Cash back credit cards are a great way to get some of your money
back that you spend using your credit cards. With plenty of
credit cards issuers offering this to the credit card customers
now, to entice hem into spending more, there is one thing that I
would say though, is only take out a cash back credit card if
you can pay your credit card bill off in full at the end of each
month, if not then you could be holding a credit card that is
charging you a higher rate of interest, costing you more for
your borrowing than it should and could be.
Cash back credit cards are more suited for those who keep a
clear balance each month and so need not have to worry about the
level of APR that the credit card is charging as you will be
keeping your balance clear, so looking for the best cash back
deal possible, couldn't be any easier.
Most credit card companies will offer you a cash back percentage
of 0.5% or 1%, but if you search hard enough you may find one
that is willing to give you a cash back offer of 2%, though this
may be for an introductory period only and will revert back to a
standard 0.5% or 1%.
If you do spend heavily on your credit card through the month
and meet your payment in full each month and on time (this is
also vital), then lets for talking sake that you spend £1,500
each and every month, so by using your cash back credit card,
which is giving you 1% back on your spending, will see that you
are £15 better off each month and will give you £180 a year back
on your spending, just for simply using a credit card that you
will use anyway.
What you will have to resist, is the temptation of knowing that
if you use your credit card for an item that costs more than you
can afford to pay back at the end of the month, to gain the cash
back will only cost you more in interest charges, than you would
make from your cash back facility, as the standard APR on a
credit card roughly 16.9%, with your cash back card being maybe
higher than that, then for the 1% you make in cash back, you
will lose almost 1.5% or more in interest charges, defeating the
purpose on why you have the card in the first place.
About the author:
Peter Kenny is a writer for creditcards-gb For additional
articles and an extensive resource for everything about credit
cards, please visit us at
http://www.creditcards-gb.
co.uk and
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