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In order to win a £100 John Lewis voucher courtesy of Capital One please follow these 3 easy steps

1. Firstly you MUST fill in the poll about cash back credit

2. Read the article on cash back credit

3. Complete the contact form so we know where to contact you if you win!

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Thank you for your answers. A winner will be picked at random on Friday 16th December at 10am. One entry per person please. UK and Ireland entrants only.

Cashback  Credit Cards

For most of us, using a credit card is mostly associated with special or larger purchases. One off items like holidays, presents, gig tickets and festivals and such: credit card. Every day essentials like groceries and takeaways: cash / debit cards. It’s easier for those of us who are particularly budget conscious to keep an eye on what’s coming in and (most importantly) going out of our accounts.

However, did you know that many credit cards offer cashback on products that you purchase? This isn’t like getting cashback on your debit card – it’s normally a small percentage of your purchases credited to your account on a regular basis. Obviously though,it’s not a good idea to put lots more purchases on your credit card – if you don’t pay off the full amount each month, the money you are getting back isgoing to be instantly wasted on interest payments!

That said, for spending that you’ve already got planned, it’s a good way to put your credit card to good use. You need make doubly sure that you pay off your balance every month. You can do this via Direct Debit, but keep an eye on your bills and map out these purchases carefully to ensure you’re not overspending.

You might also need to explain to friends and family exactly why you now put your weekly groceries on your credit card! However, thanks to this handy article, you’ll have no problem doing that. Take a look at  this video:

Quickfire Facts

• Cashback credit cards have become increasingly popular as they offer potentially a better way of generating a return from spending than debit cards
• Capital One believes that cashback cards potentially offer a better way of earning a return on spending than many current accounts
• Savvy consumers who actively manage their finances can generate fantastic rewards each year from cashback credit cards.
• Consumers who pay their credit card balance in full each month currently holding a card offering otherbenefits, such as zero percent on new purchases, could be better served by switching to a card offering tangible cash rewards
• However, not all cashback cards are created equal – customers should choose cards that work hard for them
• Aroun 2.9 million (35%) of cashback card holders use their cards for less than 40% of their monthly spending while 1.8 million (22%) pay for 80% or more of their monthly outgoings with this type of card*
• With 55% of current accounts now paying 0% interest and another 28% paying 0.1%
  per annum or less, according to Moneyfacts, cashback cards offer a potentially better way of earning a return while spending than debit cards**

*¹ICM research surveyed 2,013 British Adults via online omnibus from 6^th-8^th October 12^th – 14^th May 2010.  The results have been weighted to nationally representative criteria.  Calculations regarding cash back rewards have been made using the omnibus research and applying this to the latest ONS Family spending Index data.  Calculations based on standard industry cashback rate of 0.5%.

**http://moneyfacts.co.uk/news/banking/the-fall-and-fall-of-current-account-interest-rates/

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