Used properly, cashback credit cards are a great way of earning some extra money from your everyday spending.
You simply spend on your card, pay off your balance in full each month and pocket a nice bit of cash from your credit card company.
If that sounds appealing, then the relaunched American Express Platinum Cashback Everyday credit card might be of interest. And if you take it out and spend on it in the right places this month, you could pocket up to £150 in cashback by the end of the summer.
What the card offers
Unlike many of its competitors, the Platinum Cashback Everyday card is free to use. In the first three months you have the card, you can earn 5% on up to £2,000-worth of spending. So if you have a big purchase coming up that you've been saving for, spending on the card could earn you up to £100.
After that three-month period, you'll earn up to 1.25% cashback, depending on how much you spend. If you spend up to £3,500, you'll earn 0.5% back, spend between £3,500 and £7,500 and receive 1%, and spend over £7,501 and you'll earn 1.25%.
This month, American Express has relaunched its Shop Small scheme, which offers a chance to earn up to an additional £50 in cashback when you spend at small businesses – ranging from shops to garages to takeaways to pubs – around the UK.
All you need to do is register your American Express at amex.co.uk/shopsmall and see which businesses in your area are participating.
Each time you spend a minimum of £10 on a registered Amex card at one of the businesses, you'll earn £5 cashback, up to a maximum of £50. So you can save money at up to ten businesses and support the local economy.
What to watch out for
If you want to apply for the Platinum Cashback Everyday card, you'll need a household income of at least £20,000 a year and a good credit rating.
Also be aware that American Express isn't accepted everywhere, so make sure you check if you're planning to use the card to pay for a big purchase or two.
You need to pay off your balance off in full each month or you'll be charged interest, which will quickly wipe out any cashback. The representative APR (the annual calculation of interest and charges) on this card is 19.9%.
You should also be aware that you need to spend a minimum of £3,000 over a year to qualify for the up to 1.25% cashback offer.
And, needless to say (but I'll say it anyway) there's no point spending unnecessary money or money you can't repay in the pursuit of cashback.
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