Christmas Cashback Credit Cards Analysis
Personal_Finance / Credit Cards & Scoring Nov 21, 2017 - 03:16 PM GMTBy: MoneyFacts
The cost of Christmas is officially on the rise, as inflation sits at a five-year high of 3%, and food and energy prices are rising, which means running the boiler and buying those all-important Christmas groceries will cost more. With around five weeks left to go until the big day, consumers are likely to be concerned about how much the festive season will dent their bank balance.
Unfortunately, shoppers will find that interest-free deals on credit cards have been shrinking over the past six months, giving consumers fewer months to spread the cost of Christmas. At the same time, the cost of withdrawing cash using a credit card is on the rise and cashback cards are becoming far less rewarding. The latest research from moneyfacts.co.uk compares some of the best deals around, which could help shoppers make the most of rewarding credit cards and current accounts throughout the festive season.
Rachel Springall, Finance Expert at moneyfacts.co.uk, said:
“The pressure on families over Christmas is only set to grow, what with the cost of energy and food rising, not to mention the recent rise in interest rates. All of this combined will make it increasingly more difficult for households to stretch their budgets to cover the festive season. Those who are just about managing should also avoid taking out cash on their credit card due to the cost of fees and interest.
“There are still some ways for shoppers to make the most of any spending, such as by earning some cashback with a credit card or current account, or even by making use of an interest-free purchase card to spread the cost of Christmas, but the offers are not as rewarding as they once were.
“Cashback is tightening on both credit cards and current accounts, with NatWest previously paying up to 3% on utility bills, which is now down to 2%, and Halifax once offering a £125 switching incentive for its Reward Account as well as £5 a month, now down to £75 and £3 respectively. Luckily, consumers can still get £185 in gift cards from M&S Bank if they switch to their current account and stay for 12 months. There’s also still American Express, which offers an Everyday Cashback Card paying 5% cashback for the first three months, plus a ‘shop small’ incentive for two weeks in December whereby shoppers can earn £5 when they spend £10 or more. Alternatively, customers could buy gifts through websites such as TopCashback to earn a little extra each time they shop.
“While the rewards continue to slim down and consumers’ bank balances shrink, it’s important for shoppers to start counting down the cost of Christmas, attempt to rein in their spending and seek advice if they are struggling to cope.”
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