CASHBACK CREDIT CARDS
What Is A Cashback Credit Card?
A cashback credit card rewards you for spending on your credit card by giving you a % of the amount back to you as cashback. If you are someone who likes to pay their bills in full every month then you don’t need a 0% card, instead you should be looking for a card which will reward you the most, this can take the form of air miles, fuel, vouchers or cashback. A cashback card is only suitable for those not recurring interest otherwise any cashback earned will be cancelled out by the interest.
When getting a cashback card make sure to check the specifics with the supplier. Is there a minimum amount you have to spend to earn cashback? Do all purchases or only certain purchases count? Also make note of the % cashback you receive as if this is an introductory offer this could decrease over time and so you might want to make a switch to a different card.
Benefits & Disadvantages
✅ Cashback can usually be earned on all purchase transactions meaning you are getting money back every time you spend on your card.
✅ These are purchases you would likely be making anyway so you may as well earn some cash.
❌ You must pay off the amount owned on the card each month so that the interest doesn’t cancel out the cashback.
❌ Cashback is not usally earned through cash withdrawals.
❌ Some cards will have a minimum spend to qualify for cashback.