Credit cards Updated:
More consumers than ever before are taking advantage of the competitive cashback offers that are available on a variety of credit cards, new research reveals.
The study by Santander, which analysed over 40 million UK customer card transactions, revealed that supermarkets and petrol stations have seen significant growth of 58% and 49% respectively in the number of savvy customers using cashback credit cards.
Cashback credit cards can be a great way to earn tax-free cash rewards on your spending and, if managed efficiently, can offer a host of benefits.
Best suited to regular card users, a wide range of cashback cards are available in the market, offering various rewards for spending in the form of cash, vouchers and even air miles.
As with any credit card, you must be confident that you can pay off the balance in full each month, and avoid paying just the minimum repayment.
Failure to keep up regular repayments on your card will incur hefty interest rates, which will cancel out any rewards or benefits associated with the card.
American Express Platinum Cashback Card
Penny says… "Sitting at the top of the cashback sector is the Platinum card from American Express. Paying a market-leading 5% cashback on purchases up to £2,000 during the first three months, this card also offers an emergency cash service.
"It is worth remembering that the 5% offer will run for three months, after which a very competitive 1.25% will be received on all other purchases."
American Express Platinum Cashback Everyday Card
Penny says… "American Express’s Everyday Card charges no annual fee.
“Earn a fantastic 5% cashback for the first three months, after which earn up to 1.25% cashback if spending over £7,501 per year on card.”
Sainsbury's Bank Cashback Credit Card MasterCard
Penny says… "Just squeezing into the market's top three is this card from Sainsbury’s Bank.
"Card holders shopping at Sainsbury’s can earn 5% cashback on purchases made in store during the first three months."
Sainsbury's Bank Cashback Low Rate Credit Card MasterCard
Penny says… “In fourth spot is Sainsbury’s Bank’s Cash back Low Rate CC MasterCard charging a super low APR 0f 7.8%.
“Sainsbury’s shoppers can also earn a competitive 5% cash back whilst shopping in store.”
Santander 123 Credit Card MasterCard
Penny says… "A variety of competitive cashback amounts are paid on the 123 Credit Card from Santander, depending on where the purchases take place.
"Spending on train fares and fuel reaps the highest level of cashback, so this card should appeal to customers who are regular travellers."
Information & Rates correct as at: 21/08/2013
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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