Cashback

Get paid to spend with a cashback credit card.

How cashback cards work

If you always pay off your credit cards in full every month, switch to using a cashback card. You could enjoy up to 59 days' interest-free credit and earn a rebate of up to 1% of the value of your purchases, with lenders sometimes offering introductory cashback of 2% or even.3%. If you spend, say, £5,000 a year on a cashback card, you could receive a yearly cheque for up to £50. It might not sound much but it's free money for doing nothing more than you do already so whenever possible, buy everything - even your smallest purchases - on your credit card for maximum cashback.

Things every cashback card user should know

As always, it's essential to check the small print before you sign up for a cashback card. Some pay more the more you spend, others only pay an introductory rate and others still will cap the amount they'll pay so make sure you pick a card that accords with your spending habits. And only go for one if you always pay off your cards in full every month.

Note that you can use your cashback card alongside store loyalty cards (such as the Boots Advantage, Nectar and Tesco Clubcard) to earn additional rewards.

Finally, many people advocate using cashback cards as an alternative to charity credit cards. Cashback rates are often higher than those on charity cards so you can donate any cashback you get to charity instead. Make your donation via Gift Aid and you can increase its value even further.

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