When it comes to choosing a credit card, UK customers have a huge range of options available to them. There are not just interest rates, fees and credit limits to compare – you should also look at the kinds of rewards some kinds of credit cards can offer you. This is a great way to make your money go further; another is using cashback websites when shopping online. But which is best?
Cashback websites allow you to get cashback on purchases made online simply by clicking through a link on the cashback website. On the main cashback sites, a huge range of major retailers offer cashback on purchases, ranging from 1 per cent all the way up to 20 per cent or more. These sites are very easy to use, as all you need to do is go through the cashback site before shopping at the retailer’s website. Your cashback should track automatically, although you might have to wait a few weeks to get your cashback.
Rewards credit cards
When you compare credit card deals, make sure to include rewards cards in your search. These are basically cards which offer you cashback or loyalty points (which can be redeemed for credit at a particular store) every time you make a purchase at a qualifying retailer. Unlike cashback websites, rewards cards often give you points, credit or vouchers at only one particular retailer, usually the retailer or lender which issued you with the card. However, some rewards credit cards, such as those from banks and building societies, offer you cashback or points on a range of purchases, from fuel and groceries to your council tax and household bills. There is often a monthly fee to pay for these kinds of rewards cards, so you’ll need to work out whether the cashback or points you’ll get from using it will be worth it.
Can you benefit from both?
Of course, if you are a super-savvy consumer, you may be able to take advantage of both rewards credit cards and cashback websites when doing your shopping online. One way to do it would be to sign up to a cashback website, click through to a retailer’s website and make a purchase, paying for it using your rewards credit card. This may only work with certain retailers and card providers, so you’ll need to check your credit card’s terms and conditions before you give it a try.