Tuesday, September 17, 2013

Cashback credit cards: Make money when you spend!



Credit cards can be complicated and getting your head around all the different terms and conditions can be a challenge. You may have had your credit card for many years – perhaps your bank automatically gave you a credit card when you hit a certain age – and, let’s face it, you probably didn’t spend too much time trawling through those convoluted terms before you signed.

Can I switch my credit card?
Don’t worry; you’re not stuck with your credit card forever and you’re free to switch to a better account! The key is to find the best credit card for you and ensure that you take advantage of all the benefits it has to offer and that you won’t fall foul of the hidden fees that could cost you more than it’s worth.

What is a cashback card?
Credit card providers often offer rewards to their customers – ranging from vouchers to discounts – but cashback credit cards offer money as a reward. This means that every time you spend, you’re actually earning some of that money back. So if your card has a cashback rate of 5%, you’ll earn RM 5 every time you spend RM 100 – so your purchase actually only ended up costing you RM 95.

Should I get a cashback credit card?
Whether you should apply for a cashback credit card depends on your personal finances and on the terms of the card itself. Cashback credit cards offer a fantastic reward (who doesn’t want free money?), but they also tend to have higher interest rates. As long as you know you’ll be able to pay off your debt in time, then go for it; but if not, go for a credit card with a lower interest rate.

Cashback may be a great temptation, but if you don’t pay off all of your debt at the end of the month, it could end up costing you more than you earn with the cashback, so choose your card with care. Be honest with yourself about your financial situation – perhaps a cashback card isn’t for you now, but once you start taking control of your finances and building up a record of paying off your balance in full every month, then you can consider getting yourself a better deal!

How do I find the best cashback credit card?
It’s best to have a look through all of the deals out there and then decide which one suits you best. Look at the percentage of cashback you’ll get, but don’t forget to consider the interest rate as well as any fees you will have to pay for late payment.

This process can be tedious and take up a lot of your precious time, so why not use a credit card comparison tool like the quick and easy tool at www.CompareHero.my? It will do all of the hard work for you and clearly lay out all of the credit cards along with their respective rates and fees so all you have to do is decide which card is best for you and your money!

By Author:
Thomas Bradshaw

Editor of CompareHero.my
CompareHero.my helps Malaysians save time and money by comparing financial an telecommunication products such as insurance, credit cards, debit cards, loans, mobile tariffs, internet plans & more. 

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