Get some cash back from your credit cards…

Anyone that owns a credit card knows they can be both a curse and a life saver. The main problem with this form of credit is the cost - credit card interest rates can hit up to 30%! It would be fair to say that most of us would be better off without a credit card - it’s simply too easy to rack up a large bill then find yourself unable to pay it off. But, if you absolutely feel that you must sign up for one why not make the card work for you by taking a look at cash back credit cards.

The idea is simple; you spend using your credit card and the card company uses a reward scheme whereby you benefit in the form of a payback.

Don’t be fooled, you won’t make huge sums of money from these schemes - the typical rate offered is around 0.5% cashback on the purchase value i.e you spend £100 you get 50p back. The best cash back rates can reach up to 5% but in many cases the amount you can earn back is capped!

You also need to aware of the criteria that credit card companies set in order for you to qualify for cash back - ALWAYS, ALWAYS, ALWAYS READ THE TERMS! Did you get that? Good, make sure you do it.

Another factor to consider is this: some lenders only offer you cash back against your credit card purchases for a set, initial period whilst other lenders will base the amount of money you get back credit card on our credit card spending levels (see above; capped cash back).

The bottom line here is, where possible, avoid credit cards unless you absolutely must have one, in which case you should serious consider getting a cash back reward credit card.