The Best Cashback Credit Cards of 2009
Best Cashback Credit Cards of 2009
The recession is hitting credit card companies hard as spending slows and bad debts rise. And to maintain profitability card companies are making it increasingly difficult for consumers to get credit and many of their best deals have been withdrawn from the market. So not only is borrowing becoming more difficult but credit is becoming more expensive for us all.
But with cashback credit cards it is still just about possible for canny shoppers to get some great deals and even to earn real money when they flash the plastic. These cards work like a normal credit card except they pay every time they are used. Rather than giving away points or free flights or vouchers, a cashback card gives hard cash, tax free. This might sound too good to be true but there really are no hidden catches.
However there are some things to watch out for and some actions to take to maximise their tax free earning potential.
Some cards don`t offer straight cash but vouchers or some other reward mechanism, usually tied to a particular retailer. These are nowhere near as attractive or as flexible as hard cash.
Cashback cards work great if the balance can be paid off in full each month, otherwise the interest to be paid each month will wipe out any cash earned. If it is not possible to pay off the bill each month, best to select a credit card based on interest rate.
And finally to earn as much free money as possible from these deals use the card for all normal spending. Use it to replace spending normally done by cheque, cash and other debit, credit and charge cards. Spending in this way is not an excuse to spend more but will mean the cash earnt for doing nothing quickly grows. But remember to pay back in full each month.
If you think cashback cards are right for you the best on the market at the moment is the Amex Platinum card which pays 5% cashback for first 3 months up to £2000 pa and then up to 1.5% cashback thereafter depending on how much you spend.
The Egg Money Mastercard is the best of the rest giving a flat 1% cashback up to £20,000 per annum though there is a £1 monthly charge on this card which will eat into the cash you earn.
The Bank of Ireland Moneyback card pays 0.5% up to a maximum spend of £15,000 equating to £75 pa. And the Barclaycard OnePulse Card pays 0.5% to a maximum of £15 per month.
free money is the best place for help to make the most of these offers and ensure that any free cash on offer truly is free cash.
Tags: 
