Making money through your credit card

People are using Cashback Credit card to earn extra money.

09:37 24 October 2013

Did you know that with the right card you can boost cash?

Cashback credit cards are premier cards that pay you every time you use it. So in other words, the more you use it, the more you get. The money is credited to your account after every month or year.

• Know how much you stand to gain

You can earn 0.5 to 1.5 per cent of what you spend.

Take advantage of the nice introductory rates. Certain cards offer a 6 per cent cashback on five of your biggest purchases for a three month period. If unfortunately you don’t qualify for the cashback then you get 0.5 per cent.

Most people will opt for the long term rate. However, if you intend to make large purchase early on, the introductory rate might sway you.

There are some cards that offer varied rates that are defined by where and how you spend. There are some cards, for example, the Santander 123 card, that has different rates for department stores and so on.

• Look out for the following

When you are looking to cash in on credit card cashback deals, ensure that you pay off your credit card bill at the end of the month. If you incur interest at the end of the month, you might end up losing what you earn in the process.

The annual fee is also worth looking into if you intend to take up the cashback deal. The annual fee is £25.

Finally, there might be a minimum amount that you should spend before you start. Look at if there is such a thing.

• Cards that reward with each use

There are some cards that reward every time you use them. Some of the rewards include shopping vouchers.