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The Deal
A percentage of your total spend back as cash, either on all purchases made with the card or on purchases made at selected retailers.
What do I get?
Each time you use a cash back credit card to pay for goods or services you’ll receive a percentage of your spend amount as a cash back reward.
Cash back percentages vary between cards and can range from 0.5% up to 3%. The cash back reward schemes also vary, with some offering cash back on all spending and others offering more cash back but only when you spend with selected retailers.
Cash back schemes can also be ‘flat-rate’ schemes or ‘tiered-level’ schemes. Flat rate schemes offer a set percentage however much you spend, whereas tiered level schemes offer more cash back as you reach certain spending levels.
More recently, cash back credit cards have started offering introductory bonuses – or joining incentives. These introductory cash back bonuses offer an increased percentage of cash back during an initial period – usually around 3 months.
How do I use it?
Firstly, get a cash back credit card that’s right your own spending levels.
If your credit card spending is low – a tiered level scheme offering higher levels of cash back on spending over an amount may seem tempting, but if you never reach these higher levels, it’s likely you’ll earn more cash back with card offering better percentages on lower levels of spending.
Use our compare cash back credit cards page to see how much cash back your spending will earn on each cash back credit card.
Once your cash back credit card is neatly packed in your wallet, maximise on your cash back earnings by switching all your everyday spending such as groceries and petrol to the cash back credit card.
If the card offers an introductory bonus – make the most of it, buy any large purchase/s during the bonus period to kick start your cash back earnings while the percentages are at their highest.
Anything to be aware of?
As with any reward based credit card – rewards are only free while you’re never paying interest charges for making use of the credit card.
Always repay your spending in full each month to keep your cash back earnings as free rewards. If you know you generally carry a balance over from month to month you’d probably be financially better off with a low interest rate or a 0% purchase credit card instead.
Bear in mind what you can – and what you can’t – earn cash back on. Cash back will only be awarded on purchases and never on cash transactions, balance transfers or interest charges or fees.
Use your debit card for cash – ATM withdrawals, foreign currency, etc… - and if you need to, get a 0% balance transfer credit card for clearing up any existing card debts.
Top cash back credit cards...
1. American Express Platinum credit card
2. Barclaycard Platinum Cashback credit card
3. Egg credit card
4. Goldfish i24 credit card
Compare cash back credit cards
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