Credit card cash back

MrsH77

Can someone please tell me how this is claimed or does it come off your credit card bill automatically? My statement says I have £18.60 with Lloyds  CC cash back this month … apologies if this is a stupid question!

Ebe_Scrooge

Usually it's just credited straight back to your credit card.  So next month your statement balance will be £18.60 less than what it would ordinarily be.  For instance, assuming you normally clear in full every month ... if you spend £100 on the next statement, you'll only need to pay £81.40 in order to clear it.

MrsH77

Thank you!

Ebe_Scrooge

IanManc said:

Ebe_Scrooge said:

Usually it's just credited straight back to your credit card.  So next month your statement balance will be £18.60 less than what it would ordinarily be.  For instance, assuming you normally clear in full every month ... if you spend £100 on the next statement, you'll only need to pay £81.40 in order to clear it.

This advice to pay less than the monthly balance "in order to clear it" next month is wrong. After the credit has been applied on the January bill the amount of the balance payable in February will be reduced accordingly.

Apologies if my statement was misunderstood.  Of course you need to pay the full statement balance - all I meant was that in the example I gave, the statement balance would show £81.40 to be paid, rather than £100.

And you are right - each card is different, some apply the cashback annually.  Actually, to be fair, I think I'm right in saying that this is true for the majority of cards.

But the bottom line, in answer to the OP's question, is that cashback is credited back to your card, and will reduce the amount you need to pay accordingly - you just need to be aware of when that actually happens.