Credit Cards – The Good, the Bad and the Cashback

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Lots of people say that credit cards are bad, others can’t get through the month without them. But, should you get one?

Short answer – YES

Yes of course you should have a credit card. It’s a bit like asking if you should have insurance? You know the answer to that is Yes so let me explain why a credit card is the same.

Look at it like an insurance policy, Get a credit card and then whenever you need it, you have instant access to credit. No expensive payday loans, no expensive unauthorised overdrafts at your bank and no having to beg friends and family for cash.

Should the unexpected happen, boiler breakdown, car breakdown or any other sudden emergency you can whip out your credit card and pay for it.

However, you need to respect it. Only ever use the credit facility in an emergency but if you have a credit card then why not get a cashback credit card? Pay for all your normal expenditure and earn cashback. Just think how much you spend each month on groceries, petrol and other shopping. You could be earning cashback on every pound. Just remember to settle the bill in full each month and it’s free money with an emergency loan facility.

We have reviewed some popular cards and listed a couple of them below:

American Express Platinum Cashback – Earn 0.5% Cashback on all your purchases up to £5,000 and then 1% on all further spending over £5,000. No annual fee. Cashback is paid annually. They have an introductory offer of 5% cashback (capped at £100) for the first 3 months, so useful if you are planning a big purchase.

Tandem Bank – New bank Tandem has a credit card that pays 0.5% cashback on all your purchases and pays out each month. You need a smartphone to use this account.

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