Cashback card crash

The number of cashback credit cards on the market is falling rapidly, say credit card analysts.

Cashback cards return a percentage of the money spent on cards as a tax-free bonus.

But both the number of cards available and the best rate of return they offer have slumped dramatically say analysts.

“It is now becoming increasingly difficult for customers to find a card which offers them the kind of cash-back benefits that were commonplace at the beginning of 2005,” said credit card advisor Samantha Owens.

And many other money back options seem to be on the way out, she adds.

“Not only have we seen cashback deals severely cut or withdrawn, but other incentive schemes such as Nectar points and AirMiles are also less widely available.

“With zero per cent interest deals costing the credit card industry dearly and the impact of personal bad debts starting to bite, it’s not surprising to see providers taking action to reduce their costs.”

There are still decent deals around for consumers prepared to compare credit cards, Ms Owens added, but they are becoming fewer and further between.

© Adfero Ltd

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