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Cashback credit cards literally pay you back for using them. Qualifying purchases at supermarkets, department stores and petrol stations, for example, can put a portion of the spend back onto your card balance.

What do cashback cards give you?

They give you back a percentage of what you spend on the card. This amount is usually deducted from your bill once a year.

For example, if your card gave you 3% cashback, you would get back £90 if you spent £3,000 on the card.

Some cards let you convert your cashback into vouchers instead, and some will boost their value if you do this.

 

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Let’s compare credit cards

Used wisely, a credit card is really rather handy. It’s great for those little emergencies, like when your car needs a new part or for those spontaneous shoe purchases that you just have to have. But it can be really confusing knowing which credit card to get – cashback , interest free credit or one where you can get rewards; sometimes it’s a case of too much choice and not enough information.

But we’re here to help – so if you don’t know your APR from your 0% and your idea of a balance transfer is shifting weight from one foot to the other, then let us help enlighten you. And if you need credit but worry you’re not credit worthy, get the lowdown on credit cards for bad credit.

What is a cashback credit card?

It’s a type of rewards credit card that earns you cash every time you use it to buy things (although there may be some limits, so check the Ts and Cs). The amount of cash you get back will depend on how much you spend and where you’ve spent it.

Cashback credit cards – all you need to know

Credit cards that ‘reward’ you for using them are increasing in popularity.

The overall number of credit card transactions in the UK is steadily increasing, up 8.7% in a year. This, coupled with the variety of rewards cards on the market, is encouraging consumers to think about whether their spending could earn them real-life benefits – such as cashback.

Should I get a cashback credit card?

This depends on how you use your credit card – credit cards with cashback often have high interest rates, meaning any cashback you earn would be written off by the interest you’d pay on your balance.

If you’re always able to pay off your balance in full, a cashback credit card could help you earn money back on your spending.

Cashback credit cards aren’t suited to those looking to transfer a credit card balance – a better alternative is a credit card with a low interest rate and a 0% introductory offer. You can compare cash back credit cards with uSwitch and see if a cash back credit card is right for you.

How do I find the best cash back credit cards?

Many cashback credit cards will have a higher than average introductory rate to entice new customers, but you may find that the long-term rate is much lower than its competitors.

It’s important to weigh up how much you intend to spend during the introductory period or how much cashback you can get in total over the long-term.

Finding the best cashback credit cards is really a case of assessing your own spending habits and ensuring you can keep up with the repayments so that the interest rates don’t come back to sting you.

Different cashback rates

Some cards offer different cashback rates for different types of spending: you might earn 1% cashback if you use your card in a supermarket and 3% for spending at a petrol station.

You might also earn a different rate depending on how much you spend. For example, the cashback rate might be 1% on spending up to £3,000, but 1.5% if you spend more.

Some cards only offer cashback if you spend at a certain store and many pay a high introductory cashback rate for a limited period. This means you could earn 5% cashback for the first three months, but move onto a standard rate of 1% thereafter.

How do I compare cashback credit cards?

If you decide a cashback card is for you, then the next step is to look for one that you’ll get the most out of, based on your spending habits. When you compare cashback credit cards with us, we’ll show you via our partners on offer and highlight the key features of each one, helping you to choose a credit card that’s right for you.

Who do we include in this comparison?

We include unsecured loans you can get in the UK from our panel. Like other comparison sites, we make money when you click through to a product or service, or go on to purchase it after visiting our site. If you use one of our broker services, we make commission after you buy a product, but it doesn’t cost you anything extra. Our comparisons are free for you to use and you get the same or a better deal than going direct.