Earn 5% cashback - but be quick!

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I'll let you in on a little secret. I hate spending money.

And as many of you know by now, I'm also getting married next month.

The two don't really go together, do they?

In fact, you could easily substitute the word 'married' for 'ripped-off' and that sentence ("I'm getting married next month") would still make sense.

I know, I know, I'm not supposed to think things like that. I'm supposed to only care about how wonderful the day will be. And I do. But I don't see why I should have to fork out hundreds - and thousands - to marry the man I love. That's why I started this blog you are reading. To try to fight back and help other brides to have a big fat frugal wedding like mine.

But my next tip applies to everyone - not just brides. It's also one of the easiest things you can do to save money, regardless of what you want to spend it on!

Cut the pain of spending

In the last month, I've had to fork out thousands of pounds of my savings on my wedding, and there was only one thing eased the pain: the American Express Platinum cashback card.

For penny-pinching bargain-hunters like me, this card is a dream come true. It offers you 5% cashback on all purchases you make within the first three months of applying for the card, up to £100. After that, the rate of cashback is tiered as follows:

Effectively, this means that, the more you spend, the more you will get back. And the more quickly you spend in the first three months, the more cashback you'll earn.

So when you hand over your hard-earned cash, you can take comfort in the fact that, with every purchase you make, some of your money goes straight back into your wallet.

Perfect for spending on weddings - and honeymoons!

What's the catch?

Mathematically-minded readers of lovemoney.com will have noted that, in order to achieve the maximum benefit of the 5% cashback, you'd need to spend a whopping £2,000 in the first three months.

This will net you £100, but after those three months are up, the rate drops so dramatically you will earn just 5p cashback for every £10 you spend (unless you spend more £290 a month).

On the plus side, there is no maximum limit on the cashback you can receive - so if you typically spend £625+ a month on your credit card, then you'll do well with this card.

Just bear in mind that not everywhere takes American Express. This is because Amex charges retailers a higher commisison than other credit card providers, so while most chain stores accept it, few independent shops and restaurants do.

It is also important to note that the APR on this card is a mind-boggling 19.9%. So if you cannot afford to pay off your balance in full every month, this is not the card for you. What you spend will cost you a lot more than the cashback you receive.

Effectively, a cashback card should be used like a debit card - to make purchases you can afford to pay for with cash. If you need to make purchases on credit, use a 0% interest on purchases card instead (or even better, save up the cash and then pay for it using the cashback card!).

More than just cashback

So those are the downsides to this card. But I still think it's a brilliant card.

Why? Because there's more to this card than just cashback.

In my opinion, this card offers some pretty fantastic benefits to its users.

For example, it covers almost everything you buy against accidental damage and theft for 90 days from purchase.

You also get travel accident cover, so if you suffer injury or death while a passenger on public transport (such asn aircraft, ship or train), American Express will pay out up to £150,000. It will also pay out if 'the public conveyance' you are travelling on is ever hijacked!

Very comforting, I'm sure you'll agree.

Mostly, however, I like the fact that you can add a supplementary card to your account. This means my other half and I can each have a Platinum card in our wallets and spend at the same time, under his name, making it much more likely we will manage to spend £2,000 over the first three months (even if we didn't have a wedding to pay for). Then, in three months time, we plan to apply for a new card in my name and hopefully get the 5% rate all over again.

So, in total, we hope to get £200 cashback in the next six months, making the American Express Platinum cashback card a very good choice indeed.

I would add a note of caution however - if you apply for the card and then give someone a supplementary card on your account, you are 100% responsible for any debts on the supplementary card. So make sure you can either trust the other card holder(s) to pay you back the money they spend in your name.... or be prepared to foot the bill for their spending.

Spending money you don't have

Personally, I'm not borrowing a penny to pay for my wedding and my parents aren't footing the bill either - we're funding it entirely through our savings. 

I realise that not everyone can manage this however. And while it's obviously always better to cut back on the wedding than get into debt to pay for it, if you do need to borrow cash to pay for your wedding, I can't stress how important it is to use the right credit card to do it. That way, you'll save yourself a hefty interest bill and ensure you don't have a debt that spirals out of control.

If you reckon you'll need a year to pay off what you spend on the card, don't go for a cashback card. Get a 0% on purchases card instead, so you can spend interest-free. The best one at the moment is the Sainsbury's Finance Mastercard, which offers 0% on purchases for a full year.

Alternatively, if it will take you longer than a year to pay off your spending, cut back! Then, if you absolutely must, go for a low APR card. I recommend the Barclaycard Platinum Simplicity Visa card. The APR is just 6.8% and lovemoney.com readers have told us they have found it relatively easy to get accepted for this card.

Whichever route you decide to go down, do take the time to match up your spending with the right credit card. The benefits really are worth it!

Compare credit cards at lovemoney.com

Remember, if you're registered on lovemoney.com, you can add this blog to your watchlist and find new posts as soon as they are published, via your personal homepage.