At the moment I am reviewing the Capital One Aspire World credit card
This may seem a rather odd thing for a budgeter to blog about but as I shared in my initial Aspire World review post I am not much of a credit card user. I think there is a place for credit cards thought for people who are very organised with money and cashback sounds like a great thing so I am exploring it!
I knew what cashback was in simple terms but not quite how it all worked so I was quite intrigued.
Firstly with the Aspire World card 5% cashback is earned on all purchases for 99 days from account opening up to a maximum total cashback of £100. So far i have spent about £50 so I have earned about £2.50 but that’s great for not doing anything, right! You can only earn up to £100 in the first 99 days doing this or I suppose people would be tempted to seriously spend. 5% is a lot of cash back (imagine if you booked a holiday or bought a car!)
After this period you earn 0.5% cashback for all subsequent purchases up to an aggregate of £5,999.99, increasing to 1% for aggregate purchases from £6,000 – £9,999.99, increasing to 1.25% on all purchases from £10,000.
So basically the more you spend the more you get back. This makes sense. However it should not encourage you to buy what you don’t need. NEVER do that. That is just bad money management. What it should encourage you to do is consider using your card and paying the balance off at the end of the month.
There is no limit to the cashback you can earn after the first 99 days of account opening. The cash back rates and their increases begin again each anniversary of your card use.
Over at the Aspire World website you have a little calculator so you can work out how what you spend each month adds up in cashback over the year. For example if i paid my shopping bills on my credit card and the kids activities (about £5o0 per month) I could earn £100 a year cash back. A nice sum for no effort. I have direct debited to my Aspire World card to be paid off at the end of each month so I really wouldn’t need to do anything.
Cashback is paid every January as a credit to your account. Ah. I was hoping I would get it each month! Oh well I t will feel nice next January to have a little lump sum. If you use credit cards anyway and pay them off regularly it would make absolute sense to be using a cash back credit card.
So I hope that has explained to you how cash back works.
I have set the card up now and have made a couple of purchases. So far it all seems very easy and the online banking took just 10 minutes to set up.
I’ll be back soon with an other update about how I am getting on.
Disclosure: I am reviewing this card on behalf of Capital One. All opinions are entirely my own