The lure of 'cash in hand' must be overlooked to make a smart credit card decision.

LONDON, Nov. 29 /PRNewswire/ -- New research has brought to light the shocking decline in the number of cards offering cashback options. 43 cards offered the feature back in 2005; in 2009, the number was down to a mere 13. However, as Stuart McKeggie, Head of Sainsbury's Credit Cards, recognises "there are cards out there offering great reward alternatives." Rather than being worried by the apparent lack of consumer benefits, it is worth noting that bonus features are simply evolving beyond the simple cashback option.

With the lack of conventional cashback features, many shoppers turn to cards offering a points system. The cash back credit cards offered by MBNA are typical. Rather than offering immediate cash, consumers can earn points, which ultimately offer even greater discounts, going towards online shopping, airmiles or even food costs. But what about if you really need a straight-forward cashback feature?

Unfortunately, Financial Facts' study of all cards on the market has determined that cashback offers are usually heavily slanted towards one particular service - for example, the Barclaycard OnePulse Credit Card with cashback offers 5% for spending on Transport for London. But with a GBP15 a month maximum, typical for most cashback cards, there's little additional benefit; always check the overall amount available, rather than being lured by a high percentage.

As these restricted cards rarely offer additional value, a more general card is almost always preferable, unless your expenditure is extraordinarily slanted towards one particular brand or service. Business users are currently the most spoiled for choice when it comes to cash back credit cards. With 0.5% cashback on card purchases of any products or services, as well as double cashback for fuel purchases, this scheme is more likely to match your daily needs.

Financial Facts recommends that whenever you pursue a new credit card, don't be afraid to make changes. While cashback may be tool you've used frequently in the past, the credit card market changes constantly and a savvy consumer needs to frequently adapt to it.

Resources

http://www.financialfacts.org

http://www.mbna.co.uk/

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SOURCE Financial Facts

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