There are a lot of different ways in which you can earn cashback nowadays. You can do this through cash rewards for using your credit card or through a cashback website. However, before you consider using any of the different ways in which you can earn cashback it is a good idea to read the small print. That way, you can ensure that both your money and your details area safe.
In this article we will look at some of the things that you should think about. We will also look at whether cashback schemes are actually worth using.
What is a cashback scheme?
As we have mentioned, there are a couple of ways in which you can get cashback. With a credit card you will usually find that when you spend money on your card you can get a percentage of the money back. The amount that you will get back will vary depending on the credit card company that you are with. It is important that you read all of the terms and conditions on your credit card before taking up a credit card cashback scheme.
With a cashback scheme through a website it is essential that you read, and make sure that you fully understand, all of the terms and conditions. These schemes work in a simillar way to the credit card ones. You earn something back when you spend but, in this case, you need to make your purchases through the cashback website in order to qualify.
One thing that you need to remember with both of these types of cashback schemes is that they are not free money. You have to spend in order to get the cash back. And in order to get plenty of cash back you need to spend plenty. In some instances, cashback schemes have the potential to make a person spend beyond the point that is comfortable in their finances.
Advantages and disadvantages of cashback
Whilst the advantages of subscribing to a cashback scheme are obvious there are some disadvantages. The annual percentage rates (APRs) on cash back credit cards, for example, can be very high. It is also important to look at the annual fees and whether this is a cap on how much cash back you can actually earn.
Pros
• Cash-back apps and websites sometimes offer discounts on products as well as cash-back rewards.
• Some cash-back credit cards have a sign-up bonus.
• Cash-back apps and websites make it easy to earn cash when shopping
Cons
• Cash-back apps and websites do not always give you your money quickly
• Credit cards that offer cashback can have a higher annual percentage rate (APR) than cards without rewards
• There can be a cap on the amount of cash you can earn back
Cash-back schemes can be worth it. However, it is a good idea to make sure that you have considered all the details before you commit. That way, you can make it worthwhile.
