I Want to Get Money Back from My Credit Cards

Credit cards get blamed for the worst debt, but it is possible to reverse their effect when earning money back for shopping with cashback credit cards. This can make bargains even cheaper, as I get money back every time I buy a holiday, an insurance premium or high street goods.

Make Money from Credit Cards

Imagine bagging a bargain in the high street, only to better it when getting more money through purchases? Well this is made possible through the very thing that can cause the worst debt, the credit card. But care must be taken when using them, as they can sting you if you don’t keep an eye on them.

How Credit Cards can make you Better Off

The dea works because credit card companies want consumers to spend, spend, spend and spend again. The incentive is rewards and cashback. The way this works is that every time the credit card holder spends money, money is given back. With craft and diligence, lots of money can be saved on big purchases, such as kitchen units, a big holiday or Christmas shopping.

How to Take Revenge on the Credit Card

To make this work, the credit card holder must make sure that the credit card balance is settled in full every month and on time. If this does not happen, and this is the sting in the tail, the credit card company will slam late payment fees and extortionate borrowing rates onto the credit card holder. This is how they make their profits. To prevent this from happening, it is imperative to have a direct debit in place, as I do.

The other cardinal rule is, never ever borrow money from a credit card, as this will cost the borrower dearly, and make the whole exercise pointless. For this reason, think carefully before using a credit card if there is a cash flow problem, as borrowing the money could become a temptation.

Play the Credit Card Game to Earn Rewards and Cash

For the credit card game to work, use it only to make purchases, not to borrow money. But don’t feel tempted to buy just for the sake of it, as this could snowball into unnecessary spending and possibly debt. The best rewards are reaped when making purchases I would normally have to make anyway, such as household appliances or car repairs.

Free Warranty on Goods under the Credit Act Section 75

The other great thing about purchasing goods with a credit card is that the purchase is automatically protected, as the card issuer is equally liable for things going wrong. So long as the purchase is worth more than £100, the consumer is protected against breakages, loss or the company going bankrupt.

What Equates to a Good Cashback Credit Card?

In this buoyant market, deals are constantly changing, and no doubt, as soon as I’ve written this, new deals are coming on the market, which is why it is wise to keep looking for new cashback credit card offers. But an earning of around 50p for every £100 spent is about the norm. Anything better than this is worth looking into. Some credit card lenders also offer additional perks, such as shopping vouchers, free gifts and air miles.

Some credit card lenders offer a high cashback rate for a limited time frame or dependent upon the amount the consumer spends.

Alternatives to Cashback Credit Cards

But getting such rewards on purchases are on the condition the holder’s credit score is intact. In this instance, debt could be a problem. Applying for a 0% interest rate credit card is a better option. This will ensure against late payments and defaulting.

The Drawbacks of Cashback Credit Cards

It is wise to apply for a cashback credit card only if large purchases are likely, such as moving home, Christmas shopping, a wedding or a family holiday. Beware that a period of dormancy of over a year could cost the card holder a penalty. As I have said, credit card companies want you to spend, spend and spend again, which leads me to the other drawback. Don’t spend for the sake of it. Always read the small print. If cashflow is a problem, it might be wise to postpone signing up for a cashback credit card.

Cashback Credit Cards Made Simple

• “Cashback Credit Cards” Martin Lewis article on MoneySaving Expert

Photo credit: Guanaco from Wikimedia Commons