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Best cashback credit cards for the festive season

Best cashback credit cards for the festive season

Category: Credit cards
Author: Leanne Macardle
Date: 28/11/2017

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The madness of Black Friday has been and gone, and many people's attention will now be turning to Christmas and the all-important gift list. Some may have even used the sales to get a head start on things, but if you're yet to make a dent in your shopping list, you may be wondering how you're going to fund everything - and how you can get more from your money. What about cashback credit cards?

We've already looked at how a 0% purchase card can fuel your festive spending, but if you want to get something back with every purchase, you can't go wrong with a cashback card. These deals will return a portion of every spend straight back into your pocket, which over time could build up into a tidy sum that you can treat yourself with later down the line. Other cards offer different kinds of rewards, such as airmiles or loyalty points, which can similarly be used for future benefit.

However, the key thing you need to remember with these cards is that you absolutely must pay the balance off in full when the statement arrives, otherwise interest will start to build up, which could wipe out any cashback you may have gained. This is why they shouldn't be used to spread the cost of purchases (in which case you'll want to look for a 0% interest credit card), but should instead be used by those who have the funds already available to pay for Christmas - through a savings account, income etc. - and simply want to get a little something extra back.

If that sounds like you, you're going to want to get the best cashback credit card possible, and we're here to help! Read on for an overview of the three top-paying cashback deals currently available, and once you've made sure your credit score is up to scratch, you could apply and get the plastic in your hand in time for the big festive shop. Happy shopping!

Representative purchase APR (variable)
Card details

American Express

American Express

Platinum Cashback CardGo to Site

28.2% APR
  • Introductory 5% cashback for the first three months, capped at a maximum of £125
  • Standard 1.00% cashback on spending of between £1 and £10,000 per year, and 1.25% on £10,001+
  • £25 annual card fee
  • Apply online or by phone

First up is American Express's Platinum Cashback Card, which easily takes the top spot in this sector of the market thanks to its market-leading introductory cashback rate of 5%. This rate will be payable for the first three months, capped at a maximum of £125 and provided you spend £2,500 over the year. Even after the bonus period ends, standard cashback rates are still the best in the market, with up to 1.25% available if you use the card for more than £10,000 of spending. Just be aware that the card comes with a £25 annual fee, but if you plan to use the card for everyday spending and repay the balance using your income (for example), or even if you make a few big purchases and use your savings to pay them off, the cashback earned could more than make up for it.

Representative purchase APR (variable)
Card details

American Express

American Express

Platinum Cashback Everyday CardGo to Site

22.9% APR
  • Introductory 5% cashback for the first three months, capped at a maximum of £100 (must spend £3,000 over the year to earn the full cashback amount)
  • Standard 0.50% cashback on spending of between £1 and £5,000 per year, and 1.00% on £5,001+
  • No annual fee
  • Apply online or by phone

American Express has firmly established itself as the leader of the cashback market, with its Everyday platinum card taking second place in the charts. This one doesn't come with an annual fee, but it also has slightly lower standard cashback rates once the initial 5% deal has ended. It could be a wise choice for those who aren't confident they'll be spending enough to outweigh the annual fee, though again, the best rates will be achieved if you use the card for a large chunk of spending over the year.

Representative purchase APR (variable)
Card details

American Express

Nationwide BS

Select Credit Card VisaGo to Site

15.9% APR
  • Standard 0.50% cashback on spending over £1 per year
  • 0% interest on purchases and balance transfers for 12 months
  • No annual fee
  • Access to exclusive rewards when shopping online and in-store through the Simply Rewards scheme
  • Commission-free purchases abroad
  • Available to existing customers only, who can apply online, by phone or in branch

The Select Credit Card Visa from Nationwide is so much more than a cashback card. It still offers a standard cashback rate of 0.50% on all spending, but the real beauty of this deal is that it also comes with a 12-month 0% interest term for both purchases and balance transfers, which means you could earn cashback on your Christmas spending and still have a full year to pay off the balance (just bear in mind that balance transfers don't qualify for cashback).

It also comes with an additional rewards scheme and the chance to make commission-free purchases abroad, which could make this card ideal for the frequent traveller. The only restriction is that you'll need to be a customer of Nationwide, so if you're not already, you'll need to open a current account with the mutual to be eligible.

Rates and information correct as at 28.11.2017

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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