Cash in with cashback

If you have a credit card already, or you're thinking of getting one, look out for ones with cashback offers.

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“Cashback credit cards can be a useful tool for generating a little extra money through your everyday spending on things like groceries and fuel,” says Amy Knight, personal finance expert at NerdWallet UK.

Some may have cashback in the form of loyalty points, such as American Express's Avios points which rack up with every transaction and can eventually be used to buy airline tickets and more.

Then there are more traditional cashback options, such as with American Express Platinum Cashback and Barclaycard Rewards. Some of these may offer cashback on purchases up to a certain value, while others will have cashback offers for particular retailers.

It's worth exploring the latter to see if a simple change could result in a regular stream of cashback, such as switching to a supermarket where you can get cashback with your credit card.

Of course, it’s important to keep your credit card’s T&Cs, fees, and your payment plan in mind before committing to using one for cashback.

“For a cashback credit card to make you better off, you need to be earning enough to cover any fees, and you must clear your balance in full every month,” adds Amy.

“Many rewards credit cards come with high interest rates, so if you're not clearing your balance, you could quickly find you're paying more in interest than you earn in cashback.”

Cashback offers with banking and personal finance apps

Many banking and personal finance apps have their own cashback offers just waiting to be used - you may already have one that does.

Monzo, for example, offers cashback on a tailored list of leading retailers via its current accounts.