Making money from a cashback credit card

If you are very strict with your spending it is very easy to make money from a cashback credit card.

What is a cashback credit card?

A cashback credit card is simply a credit card that pays a certain percentage amount of the transaction back each time you use it. Yes the amount s very small usually around 1% - 2% of the purchase amount, but over the course of a year it starts to add up.

If you are someone who can pay off a balance in full each month then this system is for you, if you are not then don’t even chance it as the interest you will pay on your purchases will far outweigh the cashback you can make.

There are now fewer credit card offering cashback, Egg.com used to offer cashback but has now stopped and only offers discounts on selected partner shopping websites instead.
More Info http://egg.com

The main cashback credit card at the moment is Virgin Money which pays in points rather than hard cash, you receive 1 point for every £1 you spend on the card which can then be used to purchase a variety of products in the members store. http://uk.virginmoney.com/credit-card

Goldfish also run a similar loyalty scheme to Virgin Money where 1 point is paid for every £1 spent on the credit card which can then be used to purchase gift vouchers and other products http://www.goldfish.com/points/default.html

In essence the goldfish card pays back 0.5% for every pound spent which sounds very low, but it’s better than nothing.

Spend £1000 on your goldfish card and you will get £5 in vouchers
Spend £10’000 on your goldfish card and you will get £50 back in vouchers
Spend £20’000 on your goldfish card and you will get £100 back in vouchers

To maximise this you want to do all your spending on your credit card for all your purchases, then at the end of the month pay it off in full. The easiest way to do this is to setup a direct debit when you first apply for the card stating that you want the balance each month paid in full by direct debit.
Credit card companies usually don’t make it clear that you can do this when you apply online, the best thing to do is phone up the call centre and setup the direct debit.

For more money making ideas visit the forum