The best cashback credit cards


Updated on 13 December 2018 | 1 Comment

It's possible to earn a healthy cashback bonus on all your spending. Here, we look at the cards that offer the best boosts when buying the things you needed anyway.

After years of decline, the range of cashback credit cards has finally increased.

This year saw challenger bank Tandem launch a new cashback credit card.

Tandem's cashback card - the only one they offer - offers 0.5% cashback on all domestic and foreign purchases, with no upper limit.

It's one of the few cashback credit cards that suitable for travel, as it has no fees for foreign purchases or withdrawing cash, although you'll immediately pay interest on the latter.

Like reward credit cards, cashback cards have been cut by many providers in recent years.

Yet if you're able to pay off your balance in full each month, a cashback card still represents an easy win when it comes to making money. Just make sure you'll be able to use the cards to their full potential.

Here’s what's on offer at the moment.

Compare even more credit cards with loveMONEY

Tandem 

Tandem's credit card pays 0.5% cashback on all purchases above £1, in the UK and abroad.

The card has no annual fee, or fees for purchases and cash withdrawals abroad, although you'll immediately get charged interest on the latter. As a Mastercard, Tandem's card is more widely accepted than some of the American Express cards below.

Tandem is a challenger bank which is app-based so you'll need to be confident using a smartphone. You'll also need three years' address history in the UK.

The card has a representative 18.9% APR.

American Express Platinum Cashback Everyday Credit Card

With the American Express Platinum Cashback Everyday Card, you'll still get 5% cashback in the first three months up to a maximum of £100 – in other words, you'll need to spend £2,000 during that period to get the top amount.

After that, you will earn a tiered rate of cashback depending on how much you spend. You'll get 0.5% on the first £5,000 and 1% on all sums above that.

However, you need to make sure you spend a minimum of £3,000 in a year on the card to ensure your purchases qualify for cashback.

This card also gives you access to American Express Invites event and ticket benefits.

There's no annual fee on the card, and the APR is 22.9%.

American Express Platinum Cashback Credit Card

The American Express Platinum Cashback card pays 5% cashback in the first three months up to a slightly higher maximum of £125.

You could get a flat cashback rate of 1% on spending up to £10,000 or 1.25% if you manage to spend over £10,000 in a year.

There is also a £25 annual fee to take into account - so spend at least £2,500 on it a year - and the APR is 28.2%.

Like the Everyday card, this card also gives you access to American Express Invites event and ticket benefits.

Aqua Reward Cashback Credit Card

This card pays 0.5% cashback on everything you buy.

It is intended as a credit builder card, so may be easier to get than the other cards listed her, but is has restricted credit limits of £250-£1,200, although Aqua says this can go up.

The card doesn't charge fees on foreign spending, but cash withdrawals are charged.

With a very high APR of 34.95% it's vital you pay your balance in full every month.

Asda Cashback Credit Card

The Asda Cashback Credit Card pays 1% cashback on all Asda spends including petrol and George.com but just 0.2% cashback on purchases made elsewhere.

You can also get 10% cashback when you take out selected Asda Money insurance products using the card.

As soon as you have £2.50 in cashback you can download or print a voucher to spend in Asda stores or leave it to let it build up on the card.

The card also offers fee-free transactions on foreign currency from Asda Travel Money, 12 months 0% on balance transfers (3% fee) and six months’ interest-free on all George.com purchases of £200 or more.

The card comes with a representative APR of 19.9%. 

There is also a credit building version of this card, the Cashback Start Credit Card, which has a higher 34.9% APR and lower credit limit.

Compare even more credit cards with loveMONEY

Asda Cashback Plus Credit Card

The Asda Cashback Plus Credit Card pays a juicier 2% cashback on all Asda spends, just 0.2% cashback elsewhere and 10% cashback on Asda Money insurance products.

Again, as soon as you have £2.50 in cashback you can download or print a voucher to spend in Asda stores or leave it to let it build up on the card.

The card also offers fee-free transactions on foreign currency from Asda Travel Money, 15 months 0% on balance transfers (3% fee) and six months’ interest-free on all George.com purchases of £200 or more.

However, the card attracts a £3 monthly fee, so you’ll need to spend at least £150 a month at Asda just to break even.

The representative APR for this card is also 19.9%.

Santander All in One Credit Card

The Santander All in One Credit Card offers 0.5% unlimited cashback on spending.

It also comes with 0% on balance transfers for 30 months (with no fee), interest-free purchases for six months and no foreign transaction fee on purchases overseas (but it charges for cash withdrawals - if you need to make these, get Tandem's card instead).

However, the card attracts a £3 monthly fee, meaning you'll need to spend £600 a month on this card to break even.

The representative APR is 21.7%.

NatWest/RBS Reward Credit Card

NatWest and Royal Bank of Scotland both offer the Reward Credit Card.

It pays 1% cashback on all spending at supermarkets (0.5% at their petrol stations), while you'll also get at least 1% and potentially up to 15% at MyRewards partner retailers (including the likes of Ernest Jones, BP and New Look). 

This card should always be paired with a NatWest/RBS Reward current account, otherwise, you'll have to pay an annual fee of £24, which makes breaking even very difficult.

The representative APR is 23.7%.

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 (except for the Tandem card outside the UK). The charges are horrendous and your withdrawals won't qualify for cashback. Balance transfers also aren't eligible for cashback.

If you'd prefer rewards to cash, such as Nectar points or Avios, a reward credit card is a better option.

Compare even more credit cards with loveMONEY

This article is regularly updated

More on credit cards

The best reward credit cards

The best 0% balance transfer credit cards

The best 0% purchase credit cards

Comments


Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.