Spending money on your credit card and receiving some of it back sounds good, but if you don’t use it the right way then it can cost you cash in the long run, but use it the right way and it can be beneficial to you on an annual basis.

To make a cash back credit card work, is by being able to pay off your credit card balance at the end of each month, this will invoke the percentage that the credit card issuers put on the card that you hold, these percentages can range from 0.1% to 2% depending on which card that you decide to take out. Some of the best on the market right now for cash back cards are Amex Blue, Amex Platinum and First Trust Bank; these are worth a look if you have decided that a cash back card is what you want.

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The reason that this works is by not incurring any interest payments that only cancels out any cash that you have made when making purchases with your card, so if you can afford to pay off our account at the end of each month this could be the type of credit card for you.

If you cant or don’t keep your account interest free, then staying away from a cash back card is probably a better idea if this is the case, and going for a credit card with a lower APR is the right thing to do and will save you more money than a cash back card will make you money.

If you are also thinking of changing your balance on one of your cards, then take a peace of advice don’t use a cash back card for this, as purchases that are made will accrue interest as any payments that you make will go towards paying off the balance transferred amount first. Though the that are currently offering the 0% deals on transfers and purchases can be looked at, but beware that the cash back cards are not up there with the best deals that are on offer.