Another cashback card bites the dust
(10 January 2006)

The increasingly fallow field ploughed by credit card customers seeking cashback deals has been made yet barer after the withdrawal by Nationwide of its own cash reward service.

Tomorrow will see the building society's cashback card withdrawn from the market, following in the footsteps of similar cutbacks by several of its competitors as they seek to pull clear of providing gifts for customers who, as a whole, owe them millions of pounds.

The Bank of Scotland and Halifax have pulled similar services recently, and Egg also carried out a significant cut to its cashback rate last year. Existing holders of Nationwide's card will still enjoy its use but no more will be made.

A Nationwide spokesman told This is Money: "We have to weigh up the interests of our members and we felt the cashback card wasn't meeting the targets we had set for it. We intend to concentrate on our Classic credit card instead."

This is a further sign that financial providers are looking to turn the screw on providing freebies to customers as they seek to put the squeeze on long-term debt.

The withdrawal of such services is good encouragement to take out a payday loan while you consider a viable longer-term option which will not lead to financial strife. With banks increasingly wary about who they deal with, it's important to make the right choice.

In the meantime, a cash advance of between £80 and £1,000, using a service which is completely candid about its interest and repayment rates, can tide you over until you are next paid – and will also buy you time to take stock of your options in the long run.



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