CREDIT CARDS

Christmas credit cards offer cash-back rewards

With Christmas fast approaching, many are considering how they will fund the festivities. According to the latest research, there are a large number of credit cards on the market offering specialist cash-back reward schemes for the seasonal period.

The independent financial research company, Defaqto found that a credit card might be beneficial to Christmas shoppers. There are a total of 13 credit cards on the market, which offer cash-back rewards for spending.

Their research found that Capital One’s World MasterCard offers the highest cash-back reward at 5.0% on purchases for the first 99 days. There will be a maximum cash-back of £100 when the total spend reaches £2,000.

After the introductory offer there will be 0.5% cash-back on aggregate annual purchases of up to £6,000 and 1% on purchases between £6,000 and £10,000.

David Black, Defaqto's Insight Analyst for Banking, said; “Although Christmas is an expensive time, the right type of credit card can help you earn while you spend.”

"There are essentially four types of rewards available: air miles; cash back; points schemes and shopping rewards.  Alternatively, if you need to borrow and repay over an extended period then a credit card that offers a long 0% introductory rate on purchases is an attractive option.”

"If you have a good credit record and secure employment you can take your pick from the offers available so it makes sense to choose a credit card from which you can obtain some additional benefit.  If you want to have a new card for your Christmas spending, then you need to think about applying for it now so that you have it in time."

It is important to repay your outstanding credit card debts every month otherwise you could risk falling into debt. With the cost of living and everyday essentials on the rise, it could be easy to turn to credit cards for financial support.

The research found that the American Express Platinum Cash-back credit card is the second best on the market, offering  2.5% cash-back on purchases in the first 3 months, with a maximum cash-back of £100 when the total spend is £4,000.

After the introductory offer, the cash-back is at 1.5% on purchases and a bonus of 1.25% in the anniversary month if that card use has spent over £10,000 in the previous year.

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