Cash Back Credit Cards

How cash back credit cards work...

Cash back credit cards return a portion of your spending back to you as a reward for nothing more than using the card.

Get in the habit of spending regularly on a cash back credit card and at the end of the year you could get a new pair of shoes, or a nice meal out for free!

The amount of cash back you earn will always be a percentage of the amount you spend on your card - so the more you spend, the more cash back you will earn.

:: How much cash back will I earn?

The percentage of cash back awarded does vary between cards - from 0.5% right up to 3% during introductory offers.

This percentage can also vary based on your spending levels - with some cards awarding more cash back on lower levels of spending, whilst other cards offer more cash back for big spenders.

Finding out how much cash back each card will earn you is a lot easier than it sounds. Simply enter your monthly credit card spending in our cash back comparison and ChooseMoney will calculate how much cash back you'll earn on each card.

:: Cash back bonus!

Some cash back credit cards will award you with double or even triple cash back during introductory offers when you first take out the card.

Is it possible to be a 'cash back tart' and switch from one cash back introductory offer to the next.

However, unlike '0% balance transfers' there are only a few cash back credit cards offering these joining incentives.

:: Why do they do it?

Cash back isn't a good will gesture, and needless to say, the deal wouldn't exist if it weren't a money-spinner for the companies involved.

Credit card companies charge retailers for your spending when you pay by credit card, and cash back credit cards effectively return a percentage of these charges back to you by way of deduction off your monthly bill.

However, as a consumer, using a cash back credit card over any other card won't cost you anything extra - and used wisely a cash back credit card can really earn you free money.

:: Know your percentages!

The cash back percentage will be very small in comparison to the interest rate charged on any outstanding balances. This means that any month your balance is left to carry over, the interest charged will effectively cancel out any cash back you have earned.

Making the most from a cash back credit card comes down to one thing - paying off your statement balance in full every month.

Follow the simple rules of spending freely and paying off consistently and you can avoid the pitfalls and make a small packet back for absolutely nothing.

Compare cash back credit cards