Is cashback really the best option?

vinyldavid

I have been with Coutts & Co for 40 years. I pay good money for their Gold credit card, but I have never once had a problem with their service. Their rewards are probably pitiful and my wife is urging change. They call me when there is a possible misuse - on the most recent occasion I was called within 15 minutes of my card no. being used fraudulently. Their travel insurance is excellent. I say, stick to what you know. Who should I follow? Myself or my wife?!!

jamalfatty

Nice bit of name dropping there

Its your card, your account etc, do what you think is best! None of us know what you spend your money on, how much each month etc. Decide what would benefit you the most and then look for a card that offers that.

There's a list on here somewhere I believe of the different cards and their benefits

furndire

Did I read it right, you are paying for the priveledge of using the card??????? I would want one that paid me cash back.

YorkshireBoy

furndire wrote: »

Did I read it right, you are paying for the priveledge of using the card??????? I would want one that paid me cash back.

It does. Spend over £35,000 per year and you can pay the £90 annual fee with the £90 cashback received. I make that a rate of 0.26%. How the other half live eh?

JohalaReewi

There have been a few threads a while back about cashback card vs 0% on purchases + ISA/SAvings. The technique being buy on a 0% card and just pay the minimum to the CC company. Put the balance (ie the extra it would have cost to clear the balance) into a cash ISA. At the end of the 0% period, use the money in the ISA to clear the CC balance. You will have some accrued interest in the ISA account which should be more than the cashback you would have got from a cashback card.

The drawbacks are 1) The annual limit for paying into a cash ISA. Means you could have to switch to a savings account = tax liability; and 2) the CC limit. By spending big and paying back the minimum, you could easily hit your limit.

Spark

If you are able to spend thousands each months and repay the balance in full monthly, it's worth it. If not, or you don't spend enough each month to make it worth your while, or you have to pay interests on what you spend which would negate the "benefit" of having a cashback card as you would probably pay more in interests than what you would get back.
But you could move to a credit card for which you wouldn't need to pay just to have it.
Or do what JohalaReewi suggests, but after the 0% period ends, it will revert to a higher APR and then you will have to look for another card.
Or you can have a card with a low APR from the start and with no annual fee, but all in all it depends on how you are spending on them.
Gold cards don't mean anything nowadays, A lot of people are on Platinum cards now, it's all the same, just a fancy name.
But I do understand that you would want to stick with what you've got if you have excellent service from your provider, and it's rare nowadays, so if you can afford to pay the extra fees and you are happy so far, stick with it.
It will only be be until you start having problems with them (probably when the new head of the organisation will want to start changing things around to save money here and there) then you'll be off like a shot to get another credit card.