If shoppers used a cashback credit card they could earn up to £120 back on their festive shopping. But, only 17.5% of Brits have a cashback credit card, according to a recent TotallyMoney.com survey, and yet these cards can earn you free cash with absolutely no effort on your part.
The Capital One Aspire World card is the best cashback card on the market at present, offering 5% cashback for the first three months – great for Christmas and January sales shopping – then 1.25% cashback after that.
But if you know you are going to be buying a few big ticket items in the next few months opt for the Barclaycard Cashback Card instead. It offers 6% cashback but only on your five biggest purchases each month for the first three months, then 2% cashback on your five biggest purchases each month after that and 0.5% cashback on everything else. There is an annual £24 fee so make sure you spend more than £400 on the card in order to make a profit after the fee.
Have a look at our cashback credit card table for details on all the best offers available right now.
If you put your Christmas spending on a credit card you will also benefit from the protection of Section 75 of the Consumer Credit Act 1974. Given that many of us will do our Christmas shopping online this year, this extra protection could prove invaluable, as it protects you in the event of non-delivery, as well as if your purchases are faulty or there is another problem which means you can’t use them. In any of these circumstances you can go to your credit card provider for a refund if the retailer doesn’t cough up. You can find out more about Section 75 with our guide.
“A bit of smart shopping mean big savings this Christmas,” says Will Becker, CEO of TotallyMoney.com. “Cashback credit cards are an incredibly easy way to pocket some free cash.”
Just make sure if you use a cashback card that you clear your balance each month, the interest charges are quite high (19-25%APR typically) so will quickly wipe out the benefit of the cashback if you aren’t careful.