The recession has bitten hard into the confidence and budgets of consumers and has reflected itself in recent research that has indicated that 1 in 5 Britons plan to spend less this year at Christmas. The survey, published by Gfk NOP, covered 1,000 adults and also indicated that just 1 in 10 plan to spend more on gifts this year compared to last. The study implies that we will all be spending around 15% less this Christmas compared to last – a sure sign that we are all far more cost conscious and concerned that times are still tough.

Even though the financial markets have been through turmoil, there are still a wide number of credit cards available for those with good credit histories. There are even cards that offer cashback or other goods and services based on the amount spent on the card.

There is only one popular card that offers actual cash as opposed to other rewards for use. The American Express Platinum Cashback card provides up to 5% cashback, up to a maximum of £100, for the first three months on all purchases. Following the initial three month period, the cashback reduces to 1.25% but is not capped. There is no annual fee for holding the card but you must have a household income in excess of £30,000, be a homeowner and employed with no defaulting credit history to apply!

Amongst the lesser know cashback cards are those provided by Barclaycard (Cashback offers 1% on all purchases or cash withdrawals on up to £2,000 per annum), The Co-Operative Members Cashback card (1% on purchases from Co-Operative stores) and Egg (1% on all purchases from MasterCard outlets worldwide). Bank of Ireland offer two cards (MoneyBack Gold and MoneyBack Standard) that provide 0.5% cashback on the first £15,000 of eligible annual spending.

Smile and the Leeds Building Society also have cards where 0.25% of cashback is earned on all spend up to the credit card limit.

All of these cards offer a range of alternative benefits so choosing the right one depends on what you need. Many offer zero or low interest balance transfers for periods of up to 3 months. The majority charge interest on new purchases at around 16% APR although some charge up to 20% APR so if you plan to use the card as a means of borrowing then select the lowest rate option. With balance transfers it is important to remember that any payments made to the account will reduce the zero or low interest balance first and not the recent standard rate purchases.

Whilst there is no such thing as free money, cashback cards can be a way to make your spending on credit cards more efficient – especially if you are in the habit of clearing your balance each month in full.

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