Earn cashback as you shop! Use MoneySupermarket's comparison of the best cashback credit cards to find the right one for you, whether you use your card for travel, motoring, everyday shopping or just treating yourself once in while.
Cashback credit card guide
Credit cards are a flexible and convenient form of payment. They also offer quick and easy access to credit. Whether you are shopping online, paying for a holiday, or even picking up the weekly groceries, a credit card can come in handy.
But how do you pick the right card? There are various different deals on offer, but if you regularly pay for goods and services with your credit card, a cashback card could be a good choice.
A cashback card – as its name suggests – gives you cashback every time you spend on the card. It’s like a reward for using the card. The cashback is usually credited to your monthly statement, but some issuers send a cheque.
Different cashback rates
Obviously, the more you spend on the card the more cashback you earn. But some cards also offer different cashback rates for different types of spending. For example, 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. For instance, you might earn 5% cashback for the first three months, but a standard rate of 3% or 1%.
Who should carry a cashback card?
Big spenders can earn generous amounts of cashback, especially if they take advantage of introductory offers and use the card for big ticket items, such as holidays and furniture.
But the cashback does not usually make up for a high interest rate. For example, if you spend £2000 on the card in one month and earn 3% cashback, you could expect a £60 credit to your next bill. But if the interest rate on the card is 18%, you will pay more in interest than you earn in cashback. Borrowers who lack discipline might also be tempted to run up big debts in an attempt to earn more cashback each month.
Clear your debts
Cashback cards are therefore best suited to people who pay off their bill in full each month. They do not borrow on the card and do not pay any interest. So, the interest rate on the card is irrelevant and the cashback is essentially free money.
A number of cashback cards charge an annual fee, which could be about £25 but some are more than £100. Annual fees make the cards less attractive, but you should not reject them entirely. They can still be a good deal, depending on the cashback rate, your spending habits and what else the card offers.
Find the best cashback card
More of us are paying off our credit card bills each month, which makes cashback cards a sensible choice for a growing number of consumers. However, with so many different cards and cashback rates on offer, it can be tricky to find the best deal.
But comparison websites such as MoneySupermarket make it easy. We compare cashback credit cards from all the leading issuers to help you pick the right card. What’s more, our comparison service is free, independent and online. Nothing could be simpler.
Your personalised chance of approval
We’ve taken the details you gave, and used them to show you personalised scores to tell you the chance that your application for each card would be successful.
Why is this important?
Every time you apply for a credit card, a mark is left on your credit score. That means it’s better to get it right first time. Your scores help you understand which cards you have the strongest chance of getting.
The higher the score, the stronger chance you have of getting the card. If you see a very low score, you’ve probably better off choosing a different card.
- Consider a different card
- Not eligible
- Your chances are good
- You've been pre approved
If you see a high score, you can be fairly confident. The scores aren’t a guarantee, as acceptance of your application is at the sole discretion of the card issuer, but they should help guide your choice.
In some cases, we will not be able to display a score for a product because we do not have enough information about the card issuer’s acceptance criteria or we have not been able to match your details at the credit bureau.
We work closely with our partners to improve our eligibility scores for all products that are of interest to you.
We're free, independent and compare all UK credit cards as well as offering exclusive deals you can't get anywhere else.