Mentioning the word ‘cashback’ in the title of a financial product is a sure way to catch the eye of a potential customer. The prospect of receiving a payment from your lender or provider can be both refreshing and appealing to many customers, particularly those looking for credit cards.

Barclaycard recently launched its competitively priced Cashback Mastercard, which gives the cardholder the opportunity to earn 1% cash back on the first £20,000 spent each year, with effect from the account opening.

Current top 3 cashback cards:

Credit card	Typical APR	Cash rate (per annum)	Cashback rate
American Express Platinum Cashback Card	19.9%	27.9%	5% for 3 months, up to 1.25% thereafter
Barclaycard Cashback Mastercard	14.9%	27.9%	1%
Egg Money World Mastercard	17.8%	21.9%	1% (card charges £1 per month fee)

The launch of new cash back cards such as these three, may suggest a new period of growth in the cashback credit card market. However, it is imperative that cardholders are fully aware of the terms and conditions of their card.

Louise Holmes, spokesperson at Moneyfacts.co.uk commented: “Be confident that you can pay off the balance in full each month and not just pay the minimum repayment. If monthly payments are missed regularly, any benefits such as cash back or introductory deals which rely on good account conduct, will be removed by the provider.

Avoid withdrawing cash on your credit card, as the interest charged can be notoriously high compared to making purchases. If you do have short term cash needs, then it may be worth asking your bank the rate they charge to dip into your overdraft, as this is likely to work out cheaper.

If managed efficiently, customers can enjoy a host of benefits from their card including cashback, vouchers, air miles and interest rebates”.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.