Tips For Selecting Cash Back Credit Cards
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Cash back credit cards ensure that cardholders in the United Kingdom get a cash incentive ranging between 1% and 3% for purchases made on the card. Cash back credit cards are offered by department stores as well as by major credit card companies in the UK such as American Express Platinum Card, Egg and Citi Platinum MasterCard.
Cash Back Credit Cards
The actual amount that a customer in UK receives as cash back depends on the type of cards he opts for, its terms and conditions and the amount of purchases that he makes on the card.
Some credit cards in the UK may offer cash back options for specific purchases such as gasoline, groceries etc. where as some cards offer cash back options for all purchases made on the card. Some cash back credit cards offer a higher cash back percentage on specific purchases made at specific outlets and a lower cash back percentage on purchases made elsewhere. A few of the credit cards have a cap on the cash back options where as others offer unlimited cash back.
A few of the cards offer higher cash back percentage if the customer carries a balance. Some cards have an annual fee where as others charge no annual fee, some cards have an introductory 0% APR including balance transfer where as others charge a fee for balance transfers. The customers usually receive the cash back via a check in the mail on the card member's anniversary date. Many of the cards offer online accounts access as well as bill payments.
Many of the top UK credit card companies offer cash back cards that lure customers to use the cards on a regular basis. The best option for a customer using a cash back credit card is to make all payments monthly without defaulting. This is because some of the cards may have a higher interest rate that may make repayment harder if the customer starts having an outstanding balance. A customer can save a few hundred pounds annually by opting for cash back credit card but it may not be worth it if his debt starts mounting and he has no way of paying the high interest rates charged on the cards.
American Express Platinum Card offers customers in UK up to 3% cash back for the first 3 months, then up to 1.5% thereafter. Typical APR Variable, Balance Transfer Rate of the card is 14.90%. There are no maximum limits so customers may earn limitless cash back. 0.5% for aggregate amounts up to £3,000; 1% for aggregate amounts from £3,001 to £7,500; and 2% for aggregate amounts in excess of £7,501 are offered. However applicants must be aged above 18 years of age, must be a UK resident and have a regular source of income of over £20,000. Egg credit card offers 10% cash back at selected online retailers. It offers 0% APR on purchases for 3 months and 0% APR for 12 months on balance transfers. Citi Platinum MasterCard has an APR of 4.9% for the life of the balance transfer. It has a Typical 16.9% APR and offers 0.5% cash back on purchases.
Selecting The Right Cash Back Card
There are so many cards available that the customer may have a tough time selecting the right card. It will be much easier if the customers take the time to find out all that they can about the various cash back credit cards that are available. Factors to consider would be the APR charged, annual fee if any and if the card is brand specific or a general-purpose card that offers cash back on all purchases. It is recommended that the customers also find out if there are any balance transfer fees, and if there is a cap on the annual cash back. Customers may also enquire if they will receive the cash back via a check or if it will be credited to their account.
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