Some cash back credit cards also impose a minimum you must spend within a year before the benefit kicks in. Lloyds TSB Platinum card offers one per cent within the first three months of the account opening – but only if you spend more than £250 during this time.

Although it is unlikely to worry the majority of Christmas spenders, a cap can also apply. The Morgan Stanley Platinum card will stop paying cash back on purchases that take the balance over £20,000.

There are also very few cash back credit cards that offer an introductory 0 per cent interest for any significant period of time. “The maximum will be six months, which as the standard goes, is pretty poor,” says Mr Kenley.

Cash back cards that do come with a six month interest-free period are Yorkshire Building Society’s Classic Visa card, which provides cash back of one per cent for the first £2,000 spent and 0.5 per cent beyond. The MasterCard from Leeds Building Society will offer 0 per cent for the same period. It pays 0.5 per cent in cash back on all purchases made.

Balance transfer fees

However, as credit card providers reign in their generosity, balance transfer fees are also becoming increasingly common on 0 per cent deals. The Yorkshire’s Classic Visa card charges two per cent on balance transfers with a cap of £50. Bear in mind also that cash back only applies to new purchases made. Not only will an old balance carried over onto the card fail to earn cash back, it will cost you at the relevant interest rate.

Interest rates available on cash back credit card deals are not as competitive as those on standard cards. “Although the typical APR on any credit card is between 14 and 16 per cent, the cheapest deals are generally available on credit cards that don’t offer cash back,” says Mr Kenley.

Barclays Simplicity Card for example offers no frills in terms of 0 per cent introductory offers or reward schemes but it comes with one low interest rate of 6.8 per cent.

Taking cash out of the wall on any credit card should be avoided at all costs. The average APR on a cash withdrawal is a hefty 21.27 per cent, according to Moneyexpert.com, with only 11 providers charging under 15 per cent.

Even if you pay off the balance, each credit card cash withdrawal costs an average minimum fee of £2.60 or larger withdrawals an average 2.46 per cent is levied. In this case, you could still be paying for your Christmas shopping next year.

---

Tag this article :