Earn Money Online With Cashback Credit Cards
Cashback credit cards are an excellent way of maximising your money each and every time you make a purchase and earning a little extra from your efforts. Used appropriately you can earn some substantial sums of money if you are willing to alter your buying habits a little.
Credit Card companies like to reward their members for their loyalty and this is the reason that they were created in the first instance. They offer members a specified cash incentive for using their credit card to make a purchase in the hope that they can then earn some money back from you in interest repayments. However if used cleverly you will never need to make a repayment and get charged interest.
Most credit card companies will credit your cashback to you once a year usually in your January statement, so the cashback you have received in the previous year will be deducted from your current and/or future credit card bills.
Who Are Cashback Credit Cards Suitable For?
Cashback credit cards are suitable for individuals who have the financial capacity to pay off their credit card in full at the end of each and every month. If you are unable to do this or think you might be unable to do this a cashback credit card is not the right option for you. Cashback credit cards have a higher rate of interest than standard credit cards because of the incentives they offer, so being unable to pay your bill will mean that you are paying more for credit in the long term and will drastically outweigh any of the benefits you could receive from earning cashback in the first instance.
How To Avoid Being Charged Interest
Cashback credit cards essentially give you free money for being loyal to their particular brand of credit card but in order to avoid being charged interest you need to follow this simple rule;
Only ever use your cashback credit card to make a purchase of an item that you already have the money set aside for. If you make a purchase on the assumption that your next pay cheque will cover the amount, then you could be setting yourself up for large interest charges.
How To Maximise Your Cashback Earnings
Try to make as many of your monthly payments as possible via your credit card rather than direct debit. Think about regular payments you make like water, electricity, gas, council tax, rent, grocery bills, petrol purchases, clothing and household purchases. Some companies offer you a discount if you pay by direct debit so work out whether the amount you will receive in cashback from the credit card company is more than the discount you will receive by paying by direct debit.
Also be careful about other credit card charges for making bill payments as some charge you a fee of 2.5% to make a payment on your credit card and if you are only receiving cashback of 2% then there is no advantage in it for you.
Try to make large purchases on your credit card, so if you are buying a new kitchen a car, or paying a rent deposit or any other big items try to pay for them via your credit card to maximise your cashback rewards. The average price of a new Kitchen is £5,000 and if you receive 2% cashback that is an extra £100 that you have saved! In the space of a year you will be surprised by just how many big purchases you make.
Use your cashback credit card to make large purchases on behalf of a friend or close family member, you can then split the cashback reward with them when it is credited to your bill. If you do this it is it strongly advised that you get the cash in advance from the person concerned or only do it if they are totally trustworthy as you don’t want to be left with a large bill to pay.
Check your credit card statement each month to ensure that your purchases have been processed and keep a running total of the cashback you think you are owed. When your cashback is added to your credit card account at the end of the year, ensure that the figure you have tally’s with that of the credit card company so that you are not missing out on any amounts.
Useful Links
Money net offer consumers the ability to compare a huge range of financial products quickly, including credit cards, mortgages, insurance, loans and utilities. They provide an excellent overview of cashback credit cards to help you choose the most appropriate for your individual needs.
Totally Money enables financial product comparison and they provide an excellent overview of the latest cashback credit card offers with an easy to use table that allows you to view various credit card products side by side. This at a glance approach is very user friendly and easy to understand and makes choosing the best credit card a breeze.
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