Compare the best cashback credit cards

What are Cashback Credit Cards?

If you like to spend on your credit card and pay it off in full every month, you don’t need flashy 0% offers, or even a particularly low purchase rate (as you never intend to pay it). Instead you want a credit card that will reward your custom, perhaps with points, airmiles or vouchers, or even with cashback.

A Cashback Credit Card is not suitable for you if you don’t repay your balance in full each month (or before any 0% introductory period ends) because any rewards you earn from the card will be more than cancelled out by the interest you have to pay.

Watch out as well for card providers offering high introductory cashback rates (you should really aim to base your decision on the long term cashback rate, after the introductory period ends) as well as the minimum transaction amount you need to make before you start earning cashback.

Why get a cashback credit card?

There’s nothing better than getting something for nothing, and cashback credit cards can offer just that! They can be the perfect way to earn cash rewards on everything you buy, and if managed effectively, can come with a whole host of additional benefits as well.

These cards are ideal for regular card users, such as those who prefer using plastic for their everyday spending and use their income to repay the balance in full each month. This way, users really are getting something from money they were going to spend anyway, and as long as you go about things the right way, you could easily profit from it.

However, the key here is to make sure you manage things properly. Cashback credit cards should only ever be considered by those who can comfortably pay off the balance in full each month, as otherwise, the interest payments could cancel out any cashback earned. This means you should never just make the minimum repayments and absolutely need to keep up with all your bills – consider setting up a direct debit to make sure you never miss a payment.

6 of the best cashback credit cards

If you’re confident you can make the repayments, have a decent credit score and want to be rewarded for your everyday spending, there are plenty of cards out there that could fit the bill, each of them boasting different rewards and benefits. Here are the top six.

Easily taking the top spot in the cashback sector is this card from American Express, which offers a market-leading 5% cashback for the first three months (max £125) as well as standard cashback of up to 1.25% thereafter, depending on your spending. It comes with an annual fee of £25, but this could be outweighed by the level of cashback earned. However, the high APR means it’s vital that any purchases are paid off in full each month, otherwise the interest could cancel out the benefits.

American Express confirms itself as the leader of the cashback scene with its Platinum Everyday Card that secures the number two spot. It again pays 5% cashback for the first three months, this time capped at £100, but it doesn’t come with any annual fee. Standard cashback offerings are slightly more limited as a result, but for those who will spend £3,000+ every year on the card, it could be a great choice.

Santander secures a top-three spot with this card that, as its name suggests, offers something for everyone – not only does it offer cashback of 0.50%, it comes with a 30-month 0% term for both purchases and balance transfers. However, it’s worth noting that the monthly fee tots up to £36 per year, so customers will need to make sure they can earn at least this back to truly benefit.

Tandem Bank secures a place in the charts with this simple credit card offering 0.50% cashback on all purchases, with no card fee and a competitive APR. Customers can apply online, subject to meeting age and income criteria, and should note that there’s no 0% term on purchases or balance transfers.

Another simple, straightforward card, this time from Smile, with a standard cashback rate of 0.25% and an even lower APR of 16.9%. The card is fee-free and must be applied for online.

Barclaycard completes the top six with this deal that offers standard cashback of 0.25% on all your spending, and it even offers fee-free purchases abroad, making it ideal for those who like to travel.

Information & Rates correct as at: 14.12.2018