Cashback Credit Cards

Why compare cashback credit cards with Finance.co.uk

We compare deals from top UK providers to find cashback credit cards that are right for you.

• Get a decision and see deals in minutes

• Compare reward credit cards from a range of top providers

• Only see credit cards you’re eligible for

• Check eligibility with no impact on your credit score

We’ll show you the cards you’re eligible for side-by-side so you can compare and choose the one that best suits your needs. 

How to see the best cashback cards for you

So we can find the cards you’re eligible for, we need to understand a bit about:

• Your income: including your employment status, start date and annual income

• Your household details: including your address, homeowner status and what you pay towards rent or mortgage payments

• Your personal information: including your name, date of birth, contact details, and number of dependents

We will use this information to conduct a ‘soft check’ on your credit record to assess your eligibility. This means we can show you cashback cards you have a good chance of getting, with no impact on your credit score.

How to choose the right cashback credit card

Here are some things to think about when comparing cards to help you choose the right option: 

Where will you spend with the card? 

Most cashback credit cards are widely accepted by UK retailers, restaurants, and online stores. However, not everyone will accept payment from all cashback credit card providers. 

Before getting a cashback credit card, make sure it can be used where you regularly shop. For example, American Express (Amex) is a popular rewards credit card provider; however, not all shops and restaurants will accept them for payment.

Are the terms right for you? 

Many cashback cards will have terms that could affect how suitable the card is for you. Things to look out for include:

• Higher introductory cashback rate, e.g. 5% for the first three months and then 1% after

• Spending thresholds to achieve higher rates, e.g. 5% cashback if you spend more than £1,000 in the first month

• Does the card offer other benefits that you would find useful, like 0% interest on purchases or balance transfers? 

• Check the APR as this will tell you how much interest you’ll be charged if you don’t clear the balance each month

• Is there an annual fee, and will the cashback you could earn cover the cost?

Think about how much you’ll use the card to determine what terms could work for you. A card that only earns cashback if you spend over £1,000 a month isn’t worth getting if you don’t think you’ll spend more than £500 a month. 

Cashback cards work best when you pay off the balance each month. However, if you’re not confident you’ll be able to do this, pay careful attention to the APR the card charges.

Do you need a cashback credit card? 

This is an important question to ask yourself before you start an application. Cashback credit cards are most useful when you're going through a period of increased spending, for example, if you’ve just moved house or going on holiday.

If you don't think you'll be using your card often, cashback cards may not be right for you because the fees cost you more than the cashback you get. 

It may also be worth thinking about how you typically manage your credit cards. If you're regularly paying off your balance in full every month and not paying interest, then a cashback card can be a beneficial way of making your money go further.

If you regularly have unpaid balances building interest, other cards, such as a 0% purchase card, may be better.

What are the pros and cons of cashback cards?

Pros

• Get rewarded for your everyday spending

• Cashback can be used to reduce the balance owed on your credit card

• Some cashback can be redeemed into vouchers to be used at retailers

• You get section 75 protection, which makes it easier to get refunds on faulty goods between the value of £100 to £30,000

Cons 

• You need to have a good credit rating to be eligible

• Not all purchases qualify for cashback

• You may need to use the card a lot to benefit if it has an annual fee

• You may be tempted to spend more than you can afford to get more cashback

• You may only be able to access cashback after using the card for a minimum period of time

Are there any alternatives to cashback credit cards? 

Here are some other options that could help your money go further.

Rewards credit cards

Instead of getting cashback that can be used to reduce your balance, rewards cards will usually give you points that can be redeemed for air miles or vouchers to spend in your favourite stores.

Some rewards cards are tied to a specific retailer or brand. Although you'll be able to earn points no matter where you spend, the vouchers you get in exchange may only be used at specific stores.  

To get the best out of rewards credit cards, make sure the points can be redeemed at stores and brands you shop at; otherwise, they may be less beneficial to you.

Savings account

When you open a savings account, the money you deposit will start to earn interest. If you can put in a large amount of money and leave it in a savings account over many years, it's possible to generate extra money. 

The amount you can earn from a savings account will depend on the account's AER (annual equivalent rate) and how much you put into it. 

To get the most out of a savings account, you'll likely need to put a lot of money into it and leave it there untouched so it can earn interest. If you don't have much money to save, it may not be the most efficient way of earning additional money.