Choosing the best cash back credit cards on the market

Cash back credit cards are a great way of earning money back from credit card companies when you make purchases. However, with high interest rates on these types of credit cards, they are better for people who can afford to pay of the total balance each month. The best way to do this is to have a Direct Debit set up. That way, you never miss or forget to make the payment. Some of the credit card companies offering such cards are Capital One, MBNA, Santander and Virgin Money.

To lure you in, some of the credit cards will give you a great introductory rate. For example, the Capital One World Master Card offers 5% cash back for three months on everything you buy. American Express offers an introductory rate of 2.5% for the first three months. None of the other major credit card providers have introductory offers.

To entice you to get their credit cards, companies offer deals linked to the minimum amount of cash back you will get. American Express offer 1.25% as the minimum, with MBNA and Capital One set their cash back rate at 0.75%. Of course, many credit card providers have set a maximum rate that they will pay out; this rate can be dependent on what you purchase. Santander offers theirs on a 3, 2, 1 scale. They pay 3% cash back on petrol station transaction, 2% in retail stores and 1% at supermarkets.

Credit card companies set their APR rate higher than other accounts. For example, Santander set their APR at 22.8% on cash back accounts. Some providers also have other types of reward schemes linked to their credit cards, like Virgin Money, who provides the Virgin Charity Credit Card. This card pays you cash back to the charity of your choice. It offers one of the lowest APR’s on these reward credit cards.

So, if you are deciding on getting any cash back credit cards, it is best to read the small print. Check out what their cash back rate is as part of their introductory offer, and what the rate will be after any introductory offer runs out. You may find some are better than others.

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