Are there any risks associated with cashback ?
There are relatively few risks from cashback providing you are organised and do not overspend. The risks are i. You are tempted to spend too much because you believe it is earning you more cashback money. Having a cashback credit card should not mean that you spend any more money than you would previously have done, otherwise you will be worse off, not better off. ii. You can not pay the credit card off in full at the end of the month. If you find yourself in this position, you will be charged interest on the outstanding balance which could wipe out all your cashback earnings. iii. You make a late payment. If you make a late payment you will probably be charged interest and may also have a late payment fee. This would wipe out your cashback earnings.
