Cash back cards

The Mechanics of Cash back Cards

Cashback cards are simply cards that award the user a rebate on their spent funds at the end of every month, alongside other card benefits. For example, if you spent £1000 in a month on a card with 2% cashback, and paid all of it off before the 59-day interest-free period, you would then receive £20 back from your issuer. The extra cash can go towards other expenses, or even to charity, as many claim that cards donating your cashback benefit to charity are actually getting less money to the organisation than most cashback cards would if you simply opted to have them donate your benefit instead.

Playing it safe

Bear in mind, however, that this relies on someone who can pay their cards off in a timely fashion. If you’re struggling to keep up with card repayments, don’t take up the offer of a cashback card, as not only will you fail to get any money back from your monthly spend, you’ll end up owing the issuer interest in addition – the opposite to cashback. Again, always check the details of any card you are interested in using, and make sure that you’ll meet the requirements the issuer has set in order to claim your rewards.