How to make money from your Christmas spending

It's easier than you'd think - you simply have to use a credit card that rewards you every time you shop. You could either opt for a cashback credit card or a reward card.

Cashback cards

The cashback credit cards would simply give you 'cash back' every time you spend on them. For example, the Santander 123 Cashback credit card pays 3% cashback on fuel spending (capped at £300 per month), 2% cashback on purchases at major department stores and 1% on supermarket spending.

Find the right credit card for you

Or there is the American Express Platinum Cashback credit card, which pays 2.5% cashback for the first three months on all purchases up to a maximum of £100 – perfect for festive spending. After that the cashback rate falls to 1.25%, which is still pretty good.

Reward cards

Another option is to go for a reward credit card rather than a cashback card.

These will give you points when you use it that you can then spend in certain stores. For example, the Tesco credit card gives you one point to spend in-store for every £4 spent, and the NatWest YourPoints World MasterCard rewards you with one point for every £1 spent, to redeem at a range of retailers, such as Boots, Amazon and Marks & Spencer.

With any credit card it's important you can pay off the balance, otherwise you'll be stung with hefty interest payments. If you're planning to do a lot of shopping online, cashback websites such as quidco and will pay you for your spending.
You can earn around 5% for each purchase and the money will be returned to you between one and three months later.