UK Credit Cards with Cashback

Loyalty schemes, offering things such as AirMiles, points or cashback, are gaining in popularity. Whilst they may look very attractive, remember you are likely to keep your credit card for years, so taking one out just to get the few extra miles you need to get to America might not be a great idea Occasionally, cards will offer short-term cashback of up to 2% of your spending, although an ongoing rate of up to 1% is more common. What's more, you can 'double up' by using a store loyalty card - such as a Tesco Clubcard, Nectar Card or Boots Advantage Card - alongside a cashback credit card. And it's a great way to manage your business expenses (and make a bit of money too!)

 But of course, you need to make sure that you always pay your monthly credit-card bill in full - otherwise, the interest charged can be a lot more than the annual cashback accrued! And, don't make the mistake of using your card to withdraw cash...even if you get 1% back, the charge will be a lot higher!

Cashback credit cards work just like any other card when you use them in the shop. You might find that the interest charged on money you don't pay back each month is a little higher. That's one of the ways of funding this type of facility. Another is to only accept people with very good credit ratings. That way,i n theory, the card issuer has a lower bad debt level and can afford to offer a better service. So, if you are someone who pays their credit card off in full every time and who has a whiter than white credit rating a cashback credit card might be something to consider.

American Express also have two credit cards which offer points for loyalty schemes. So if you are a Nectar collector or a British Airways Airmiles customer why not click on the banner below to find out more about their loyalty credit card!