Cashback/Reward cards - Incentivise you to spend more?

Paul_Herring

I just use the cashback card instead of my debit card - I don't spend more just because it's a cashback card.

That said, I've managed to get the other half to put some of their spending on the card and they pay me back at the end of the month - they pay me when they get paid what they've spent on the card.....

cos_2

Like Sand Man, I have a GE Money card that gives 3% cashback, and use it as much as possible. Fortunately, I can pay the full balance every month, so I always get the rebate.
It doesn't make me want to spend any extra. My wife and I have fairly repetitive spending habits. But if we choose to splurge, I make sure we use the card!

To be honest, I missed paying the full balance one month because I counted wrongly. The interest came to under £12, but the cashback was over £30. Still a great deal.

Redbedhead

For me personally it doesn't make me spend more. I have had cashback or loyalty credit cards for a number of years now and put all my expenses on them. However I have a budget every month regarding what I can spend and seldom go over it and if I do go over it, it is not by much and for a specific reason (emergency expenditure on my car for example).

I always pay the balance in full, so the cashback or vouchers (I have a Morgan Stanley and a Goldfish) are a complete bonus for me.:T

Phoenix79_2

Interesting question...

I have a MS Platinum cashback card currently paying 3%. I'm not a huge spender on it (£200pm-£400pm) and i don't think i have been tempted to spend 'extra' on it at all. The only big difference is that i purchased all my christmas presents on it this year and cleared the balance as opposed to sticking it on a 'regular' credit card and paying it off over a few months.