The best cashback credit cards
Get a cashback credit card and you can make some serious cash, simply by using it regularly. But which is best?
Everybody loves to get something for nothing. Cashback credit cards are an easy way to get a proper return on your spending – you get a percentage back of how much you spend on the card in cash at the end of each year.
However, these cards are only worth considering if you pay your bill off in full each month – otherwise the interest will eliminate your cashback. But if you do, they are a fantastic friend to have in you wallet.
Let's take a look at the best cashback credit cards.
American Express Platinum Cashback Everyday card
The American Express Platinum Cashback Everyday card pays 5% cashback over the first three months up to a maximum of £100.
After that you enjoy a tiered rate of interest depending on how much you spend. Spend up to £3,500 you earn 0.5% cashback, spend up to £7,500 and you get 1% cashback, while spending above £7,500 will bag you 1.25%.
There's no annual fee, and the APR is 19.9%.
American Express Platinum Cashback card
The American Express Platinum Cashback card pays 5% cashback in the first three months to a slightly higher maximum of £125.
What's more, there's a flat cashback rate of 1.25% on all of your spending after that, irrespective of how much you spend. Each year you have the card, in your anniversary month the cashback rate doubles to 2.5%. However you do need to spend £10,000 in the previous year to qualify for this special 'anniversary' rate.
There is also a £25 annual fee to take into account. This card has a representative APR of 18.7%.
Santander 123 card
The Santander 123 card pays 1% on supermarket spending, 2% in department stores and 3% on petrol or train fares. It also pays a bonus rate of 1% on all Amazon spending made between November 1st and January 31st. Brands owned by Amazon, such as Lovefilm.com, Audible.co.uk and Javari.co.uk are also included in the special rate.
There is a £24 yearly fee, though if you move your current account to the Santander 123 current account, there's no fee for the first year. The representative APR is 22.8%.
Capital One Aspire Elite
After this is pays out 2% on anything you purchase. It's only available for people with an excellent credit score and includes a concierge service which will provide extras such as, supplying travel details, booking tickets and ordering and delivering gifts.
It has an annual fee of £120 and Capital One says you could earn £250 in cashback in the first year.
AA Rewards card
With the AA Rewards credit card you'll earn one point for every £1 spent on fuel and one point for every £2 spent on everything else. The points can then be redeemed for cash or high street shopping voucher and 4,000 is equivalent to £20. To double the rewards, 4,000 points can also be exchanged for £40 of AA products.
The card has an APR of 16.9% and a 10-month period of 0% interest on purchases and a 12-month 0% period for balance transfers.
Luma Cashback card
If your credit rating isn't great, you might still qualify for Luma's Cashback card. This pays 4% cashback, although only on fuel and supermarket spending, up to a maximum of £9 a month (so £225-worth of spending) or £108 a year. Note that the cashback will only be credited to your account every January and the representative APR is a huge 35.9%, so make sure you pay off your balance in full each month.
Asda Money card
The Asda credit card pays out 1% cashback on everything you buy in the shop (including petrol) and 0.5% elsewhere. While it may not be the highest rate on offer, it also has a 12-month 0% period for balance transfers and a six-month 0% period on new purchases of more than £200 at Asda Direct.
The APR is competitive at 14.9% but rival supermarkets such as Tesco and Sainsbury's have more attractive deals.
Making the most of cashback cards
To make the most of your cashback card, put as much of your spending on it as you possibly can but always clear the balance at the end of the month. Setting up a direct debit payment to do this is the easiest way to make sure you don't have to pay any interest charges.
As with any credit card, using it will give you the legal protection offered by Section 75 of the Consumer Credit Act 1974.
In addition, never use these credit cards to withdraw cash. The charges are horrendous and your withdrawals won't qualify for cashback. Balance transfers also aren't eligible for cashback.
This article is regularly updated