The best cashback credit cards


Updated on 13 September 2021 | 5 Comments

Want to get cashback when you use your credit card? We reveal the best cashback credit cards on the market.

The best cashback credit cards can prove a valuable ally to savvy spenders – provided they're used correctly.

By paying for things you needed anyway with your cashback card and then clearing the debt immediately, you can earn yourself a tidy cash boost.

Unfortunately, like reward credit cards, many cashback cards have been cut (or the cashback on offer has been slashed) in recent years.

American Express is the latest to do just that after cutting cashback rates on its Platinum Cashback and Platinum Everyday cards from 4 August.

We’ll explain the changes in full below and run through the various top cashback cards still available on the market.

But before we do, it’s worth stressing none of these cashback credit cards are worth getting if you don't clear your debt each month, as the sky-high interest rates will more than wipe out any cashback you earn.

If a credit card isn't quite right for you, the good news is there are loads of other ways to get rewarded for your spending. You can read all about them in our ultimate guide to cashback.

We're working with Compare the Market* where you can find out what credit cards you are eligible for without harming your credit score. Click here to find out more or jump straight in and discover which credit cards you're likely to qualify for.

American Express Platinum Cashback Everyday Credit Card

With the American Express Platinum Cashback Everyday Card, you'll 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’ll earn a tiered rate of cashback, depending on how much you spend. Before the rates changed, you got 0.5% on the first £5,000 and 1% on all sums above that.

But now, the threshold at which you start earning the more generous 1% rate has been dramatically hiked to £10,000. So, you would now earn £50 when you spend £10,000 on this card  – down from £75. 

While the rates on this cashback card are less generous than other Amex offerings, it is at least fee-free.

Note you need to make sure you spend at least £3,000 in a year on the card to ensure your purchases qualify for cashback.

This card also gives you access to special offers from a range of companies. There's no annual fee on the card, and the APR is 24.5%.

Compare credit cards (Image: CTM)

American Express Platinum Cashback Credit Card

The American Express Platinum Cashback Credit Card pays 5% cashback in the first three months up to a slightly higher maximum of £125, while the APR is 29.8%.

Following the recent changes, you’ll get 0.75% cashback on spending of up to £10,000. While the cashback rate for spending over this amount remains the same, you’ll still earn less cashback overall.

For example, if you spend £10,000 now with the credit card, you’ll get £75  ­– down from £100 before the cashback rate changed (you used to be able to get 1% on spending up to £10,000 or 1.25% if you spent over £10,000 in a year).

With this card, there is also a £25 annual fee to consider, so is probably only suitable for those who are able to use it frequently (and clear the debt in full).

Like the Everyday card, this card also gives you access to special offers from a range of companies. 

We're working with Compare the Market* where you can find out what credit cards you are eligible for without harming your credit score. Click here to find out more or jump straight in and discover which credit cards you're likely to qualify for.

Lloyds Bank Cashback credit card

Lloyds Bank recently launched a fee-free cashback credit card, which offers 0.25% cashback on your first £4,000 of purchases each calendar year.

You’ll also get 0.5% cashback on further purchases (over £4,000) each calendar year, with cashback being paid every January.

There’s no cap on the amount of cashback you can earn, plus you can get a £20 cashback bonus providing you spend £1,000 within 90 days of account opening.

The representative APR is 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 26 months (with no fee), interest-free purchases for 20 months and no foreign transaction fees on purchases overseas made in the local currency.

But it charges for cash withdrawals and 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 23.7%.

Save money AND earn cashback: our review of My Money Pocket

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 (0.25% at their petrol stations and everywhere else).

You'll also get at least 1% and potentially up to 15% cashback at MyRewards partner retailers, which includes the likes of Caffe Nero and Ted Baker.

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 26.8%.

We're working with Compare the Market* where you can find out what credit cards you are eligible for without harming your credit score. Click here to find out more or jump straight in and discover which credit cards you're likely to qualify for.

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.

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.

If you'd prefer rewards to cash, a reward credit card may be a better option.

Still not found the right card for you? View our complete guide to credit cards to see all your options.

*loveMONEY has teamed up with Compare the Market to provide credit card price comparison services. Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.

 

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