Cashback cards

Stoof

Hi, I'm currently lining up to purchase a car from a dealer and was hoping to use a cashback card to grab a little free money in the process. I was hoping to find something that would allow me to purchase the car, fully pay it off, grab the cashback and cancel the card but notice that most deals seem to only pay the cashback deals only pay the reward on the card anniversary. Any advice please? Thanks

[Deleted User]

Why are you looking to cancel the card?

Also - have you factored in the extra costs of using a credit card at the dealers? It would significantly outweigh the cashback, but if you have no choice but to use credit anyway, then better to get cashback than nothing.

Stoof

I never anticipated there would be a charge for using the credit card, if this was the case then maybe this is a no go. I want to cancel the card as it would have served its purpose, I wish to obtain the maximum reward I can then ditch the card. I currently have the funds to purchase the car outright, just looking to make a little on the side.

YorkshireBoy

Stoof wrote: »

I currently have the funds to purchase the car outright, just looking to make a little on the side.

How much were you planning to put on the card, and what interest rate are you getting on the funds?

And if you weren't aware that some retailers charge extra for paying by credit card, I have to ask...have you ever had a credit card before?

Stoof

Hi, I'm currently get 1.5% on the funds, though this will drop to 1.25% in October. I'm happy to put whatever will get my the maximum reward on the card.

I've had a number of credit cards in the past, generally using them to make a purchase that I will pay off within the interest free period.

I have checked with the dealer and they change 0.9% for a credit card transaction over £500, so that probably makes this not worth the effort.

Thanks for the advice.

YorkshireBoy

1.5% is very low. I'm making an aggregate 4.1% AER with my savings using current accounts and regular savers (will drop a little in November though when Santander cut their rate). If you were making the same you could go the money transfer route I suggested earlier. You'll pay a fee, but would be earning more in interest than the fee charged. But with 1.5% I agree it's not worth it (other than to keep an emergency fund accessible).


Do put the deposit on a credit card though for the added protection.