A cash back credit card will give you the chance to earn as you spend, as a percentage is returned to you on an annual basis for every pound that you have spent. This is usually set at between 0.5% and 2% depending on how generous the credit card lender is. I cannot stress enough, you must be able to pay off your credit card statement in full each month, and this is the only way that a cash back credit card will work for you.

If you are a borrower then a cash back credit card will only cost you, even though you will be earning a little back, you will find that this will be eaten up and more by the interest charges, which are usually on a higher scale of APR.

Is a cash back credit card for everybody?

By not incurring the interest payments, then for every pound that you spend on the card you will see a little coming back to you. If you pay your credit card balance in full every month, then why not switch to a cash back credit card. A cash back credit card is a fantastic opportunity to reward you for spending funds !

There is a word of warning that will come with this though, if you decide that you want to balance transfer a amount from your existing credit card business on to a cash back credit card, then you should try and avoid this. As a matter of fact avoid it altogether, as any payments you build to the credit card will only go on to pay the amount transferred and interest will only mount up on any purchases that you have made on the credit card. You will then be paying back more than the cash back card is creating you.

Here are some of the best deals

There are a few great deals on the go right now, with the Amex Blue cash back card the Amex Platinum and the First Trust Bank cards worthy at a look if you decide that a cash back credit card is for you.

So if you have a clear statement at the end of each month then go for it and make that bargain in the sales save you even more cash.