So what is cashback? We have all come across mentions of ‘cashback’ every now and again. From those pesky ads for top cashback offers to the supermarket till operator asking if you would like cashback. It turns out there is a lot more to cashback offers than you might think and we are talking well beyond cashback credit cards and supermarkets.
So, am I making or saving money?
First things first, start by thinking of cashback as an easy way to ‘making extra money’, rather than just about saving some money. Perhaps reward yourself with the extra cash? According to a report by The Telegraph, Topcashback (a top cashback website) pays £1.57 when you sign up for a free trial with Graze.com or £2.46 if you search for home insurance using Gocompare.
But they are not limited to being a reward either if you can play your cards right. The student money website, Save the Student, found this deal on another leading cashback site, Quidco:
Virgin Media – cashback worth £165, which means you get a cable TV package just £2 per month.
All you have to do is sign up on cashback websites like Quidco for free and start hunting for deals. Upon sign up you will be asked to pick brands or retailers you are most interested in, such as Halfords and Debenhams. Oh, and don’t forget to keep an eye out for in-store offers as well if you are already signed up with these cashback websites.
How they make money: when you shop with a brand through their website, the brand is charged a commission for having referred you to them. The website guys keep a part of the commission and give you the rest. Simple.
Put that Smartphone to use
Your supermarket app makes you spend money, but now you have apps that help you save money too. Say hello to CheckOutSmart, the app will find exclusive rewards on grocery brands, and to receive the cashback you have to click a picture of the shopping receipt and send it over to CheckOutSmart (through the app). Once they receive the picture, money is credited to your bank or PayPal account.
These offers might be real clinchers if you keep your eyes peeled. For example, fruit flavoured yogurt for 80p at a supermarket on which you can claim 70p back on the app. Basically you treat yourself to nice creamy yoghurt for 10p. Small saving, yes, but as it is with any supermarket saving, they add up over time and balance out your expenses.
The Mirror reported a story including Jennifer from London, who combines the savings from a variety of apps, including ClickSnap and Shopitize, to treat her daughter over the summer period at the London zoo, British Summer Time Festival at Hyde Park, and Hyper Japan Show at Earl's Court.
How they make money: As you may already be aware, mobile apps are a bit hit with, say supermarkets, because of the insight into your shopping behaviour/preferences they generate. When you use these apps, they make money by selling these insights to brands.
And what about those cashback credit cards?
Those good old credit cards are always there and often you might find really good deals. There are plenty of money saving websites such as money.co.uk and moneysavingexpert.com who will make it easier for you with credit card comparisons. Ask your bank for details and shop around for better deals.
Now then, there is always that flipside which warrants caution. It’s always wiser to shop around a bit because it isn’t always for certain you are getting the best deal, especially for higher value products like insurance.
Spend some time to read the fine print, there may be certain websites that charge a fee to join and others who may only payback after you have earned a minimum amount in cashback. Our suggestion is to read through the details before signing up and chances are you will be well on your way to making the most out of the deals.
If you are seriously thinking about cashback or still asking what is cashback for me, look for the top cashback offers across the spectrum and use them together. The savings from the top cashback options will add up, and it will be a matter of time when you will be hit by a realisation- “I’ve been sitting on a goldmine”.
Have any cashback stories or experiences to share with us?
Guarantormyloan is the only direct lender in UK offering one month’s equivalent as cashback to the guarantor if your first 12 monthly instalments of your loan are paid on time and in full. Learn more about our guarantor loans here and about our loan cashback here.
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