Cash Back Credit Card

Our Online Card Buys *

	Typical APR Variable	Max Int Free
	8.5%	56 days
	8.8%	56 days
	14.9%	56 days
	14.9%	56 days
	14.9%	56 days
* Based on Lowest Standard Rates and is not a full search of the whole market

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Cashback credit cards offer a straightforward cash reward for using them. These loyalty schemes return a percentage of your spending to you in the form of a cash rebate. The exact percentage on offer varies and most cash back credit cards tempt potential users with an introductory period offering a higher percentage return.

Introductory cash back deals may offer you as much as 3% while ongoing spending will attract returns between 0.5% and 1.5% depending on the credit card and on the actual level of spending.

A cash back credit card is worth considering if and only if you pay off your outstanding credit card bill in full each month. If you dont clear your credit card debt then any cash back you earn will be more than outweighed by the interest charges you incur.

If you are going to carry a balance forward on your credit card you would be better off looking for a long term low interest rate credit card . If you have no credit card debt and you dont intend to have any then a cashback credit card could make sense.

If you can be disciplined enough to use your credit card for your day-to-day purchases, while keeping the money aside to repay your statement at the end of each month, then it can be a win-win situation. A savvy consumer can earn interest on savings for the month while receiving cashback or incentives 'free of charge' from their credit card.

See the Moneyextra cashback card tables here

Last Updated: May 2007 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.