Related Credit Card Article

"Could using your debit card be costing you money?"

By admin | December 11th, 2008 | Cash Back & Rewards

In a recent report some industry officials have said that people that use their debit cards to make everyday purchases or to pay for spending over the festive season could be losing out on a significant level of cash back by failing to use a specialist credit card for their spending instead.

Officials have said that consumers who use a debit card on a day to day basis or to pay for items over the festive season could fare better by putting the cash aside, using a cash back credit card, and then repaying the balance in full with the money that they put aside, as they will then earn money back for all purchases that they have made on the card.

A recent survey showed that when it comes to day to day purchases, only 20% of consumers use a credit card, a further 20% use cash, and 40% use debit cards. Officials have said that using a cash back credit card could help some consumers to weather the effects of the credit crunch by allowing them to earn a little money back for what they spend on the card, and providing the balance in cleared within the interest free period no interest will be charged on the debt.

By using their credit cards on a regular basis and on occasions such as Christmas some consumers could make back hundreds of pounds each year in cash back, according to some industry experts. With people now paying far more on shopping and bills than one year ago this extra cash could come in very useful, and is something that many debit card holders are missing out on.

One senior official from American Express stated: “Each British household is paying out thousands of pounds a year on debit cards for everyday items such as supermarket shopping and petrol. Simply by changing the way they pay for these items, people could be earning themselves hundreds of pounds of free cash.”

Tags: cash back credit cards, debit cards

Related Articles:

• Some could be wasting money by using debit cards instead of credit cards

  In the run up to Christmas many people will be hitting the shops and spending a fortune, despite the global credit crunch, and many of these people will be spending the money on their debit cards. Recent figures have shown that around 40% of consumers tend to also do their day to day shopping using...

• Could you benefit from using a credit card instead of a debit card?

  There are millions of people that use credit cards to make purchases such as day to day purchases or special occasion purchases like Christmas shopping, but an even greater number of people tend to use debit cards to make these purchases. Whilst both credit and debit cards can prove convenient for making purchases some industry...

• Brits like to splash the cash on credit cards

  According to a recent report the majority of Brits like to do their spending on plastic rather than using cash. Research carried out by a financial firm showed that Brits were increasingly reliant upon plastic, much preferring to use their credit and debit cards than have to use cash when they make purchases. Most people...

• Cash back credit cards – the dos and don’ts

  There are a number of different rewards based credit cards around these days, and one of the most popular ones is the cash back credit card. This type of credit card offers an extra benefit to consumers in addition to the ease, convenience, and flexibility that most credit cards offer. By using this type of...

• Credit and debit card spending increases for September

  Recently released figures have shown that both credit and debit card spending levels increased for the month of September this year, which has come as a surprise for many industry officials given the current difficult financial climate. The figures show that there was a 12.7 percent rise in spending on debit cards for the month...

Other Recent Articles

Finding the right credit card for Christmas shopping

Although it may seem a while before Christmas swings around it often comes around far faster than we imagine, and...

By Reno | September 9, 2010 | Read More

New credit card launched by supermarket giant

Consumers in the UK have a wide range of credit cards to choose from these days, and there are cards...

By Reno | September 9, 2010 | Read More

Interest free purchases with the Tesco Clubcard credit card

Making purchases on a credit card can work out to be very costly for those that have high interest credit...

By Reno | September 9, 2010 | Read More

Generous interest free period on balance transfers from Natwest

Many consumers are keen to save money on their borrowing, such as on their credit card borrowing, but with credit...

By Reno | September 9, 2010 | Read More

Improvements to credit card lending

According to recent reports July saw improvements when it came to credit card lending in the UK, which many believe...

By Reno | September 2, 2010 | Read More