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Find Out Whether Cash Back Credit Cards Really Do Add Up |
By:
David Kelly |
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Find Out Whether Cash Back Credit Cards Really Do Add Up
David Kelly
When it comes to cash back credit card deals, the idea of getting something for nothing is what attracts people to these products. This article aims to assess whether this is the truth or whether you might be better off getting a better deal for your money elsewhere. Some of the credit cards products on the market offer cash back, which means that you receive a certain amount of money each year for using the card, but when you look into the returns you receive compared to the money you spend, is it really worth investing in one of these cards over other card types such as the reward scheme credit cards?
Cash back credit cards are a great way to earn money on regular purchases such as groceries, and certain cards like the Barclaycard platinum credit card currently offer a great 2% cashback on supermarket and petrol monthly. Using your cash back credit card as you would your debit card is the best way to maximise the money you will get back and if you brush up on which affiliated products and outlets are associated with your chosen cash back card you can even qualify for discounts and points. A good example of this type of shopping is to get a Virgin credit card and use it when buying music to qualify for money off Virgin holidays as well as improving the cash back you earn. Of course it is important to choose a card that reflects your lifestyle - if you never buy CDs or holiday outside of the UK, a Virgin card is probably not for you!
Like any other financial product on the market, cash back credit cards want to draw in new customers, so you will find there is often an enticing introductory period which offers you a higher percentage rate of return on goods bought. Usually this is for the first three months, but the percentage can vary from card to card with companies wanting to keep their product as competitive as possible within the market. For example the Capital One Bank Cashback card is currently offering an outstanding introductory rate of 4%, for the first 3 months, which then drops to the standard rate of 1%. This sounds like a great deal until you compare the figures with, for example, the Barclaycard platinum card which offers 2% cashback on supermarket and petrol every month, which may prove to be the most rewarding card in the end depending on what goods you tend to buy with your credit cards.
Using your cash back credit card where you might usually use your debit card also confers other benefits, as well as the alluring prospect of free cash. For example, using a credit card for purchases means you are covered under section 75 of the Consumer Credit Act, which covers any goods you buy over 100, giving you automatic protection against faulty goods.
As with all credit card products it is advisable to invest in card protection, so that should you lose your job or become ill and are suddenly unable to make repayments you won't have to pay extortionate late fees and charges. Covering you in the event of identity fraud online in cases such as Capital One card protection can give you peace of mind even if your card is stolen. Choosing the most expensive card protection can add to your outgoings in the short term but could save you a fortune in the long run.
There are of course strict criteria which dictate whether a purchase qualifies you for a cash back bonus and, as with all credit cards, it is sensible to bone up on the terms and conditions of your card in order to make the most of the benefits. Using your card within the terms and conditions can mean that by spending 500 a month you can earn about 60 per annum in cash back, so it is worth investigating the small print. Remember that debit cards do not offer you any cash back on your annual expenditure and as long as you pay in full and avoid interest and overdue charges, you will find your balance gaining from having invested in a cash back card.
David Kelly has reviewed how to http://www.mbna.ie) reap the rewards and avoid the pitfalls of cash back Credit Cards. Are http://www.mbna.ie) they something for nothing or whether cash back credit cards really do add up?
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Article Source: http://www.statssheet.com/articles/article67533.html |
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