Cashback credit card 'a great Christmas solution'

Tuesday, 01 November 2011 02:00

Finding a credit card with good cashback rewards can be one of the best ways to save money this festive period, research firm Defaqto has suggested.

Provided people are "financially disciplined", the company said, this type of product can reap big benefits.

"If you are confident that you can always repay the entire outstanding balance on your credit card every month then it makes sense to choose a card that offers rewards," Defaqto's Insight Analyst for Banking David Black remarked.

"The key is to choose a card with the type of reward that you want and that fits your circumstances. However, the rewards offered by credit cards vary widely so it is important to focus on these benefits when comparing different options if you want to take advantage of the best offers available," he added.

Capital One's cashback rate of five per cent is currently the best in the marketplace, Defaqto's research showed, along with American Express at 2.5 per cent and Santander with up to three per cent.

Use the Myfinances.co.uk comparison tables to find the best deal on a new credit card 

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