Pay using the card
You’ll use your cashback credit card for everyday spending, whether that’s your weekly supermarket shop, eating out or one-off purchases
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MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident. Representative 24.9% APR
Accurate as of Saturday, 07 December 2024
Earn 1 point per £1 spent on all purchases which you can redeem at an average 0.5% value & no foreign exchange fees.
Yonder
Yonder Free Lifestyle, Travel & Dining Rewards Credit Card
Representative example: If you spend £1,200 at a purchase rate of 32.9% (variable) p.a. your representative APR is 32.9% (variable)
Great for
But be aware that
Earn 30,000 bonus Avios when you spend £6,000 in your first three months of Cardmembership. New Cardmembers Only. T&Cs apply
American Express
British Airways Premium Plus
Representative example: If you spend £1,200 at a purchase rate of 30.7% (variable) p.a. your representative APR is 139.2% (variable)
Great for
But be aware that
£25 cashback incentive. Customers will need to complete a qualifying spend or BT of at least £100 within the first 60 days of acquisition to be eligible for the cashback. Offer ends 16th December 2024
HSBC
Purchase Plus Credit Card
Representative example: If you spend £1,200 at a purchase rate of 24.9% (variable) p.a. your representative APR is 24.9% (variable)
Great for
But be aware that
Cashback credit cards let you earn money when you make purchases or pay a bill. The cashback you can earn varies, but will typically range from 0.25% to 1% of what you spend. However, introductory rates can be as high as 5% for a limited time.
It’s important to note, though, that cashback cards tend to have high APRs. That means it’s vital that you only spend what you can pay off. If you’re not careful, the interest you pay can outweigh the cashback rewards.
The base rate currently stands at 4.75% December 2024, after the Bank of England voted for a 0.25% reduction on 7th November. This was the second cut since the start of 2024.
While credit card interest rates aren't directly tied to the base rate, they often track it to some extent.
A lower base rate can encourage lenders to reduce the interest rates they charge on credit cards, making borrowing more affordable. You may therefore see interest start to come down for cashback credit cards in the coming months, particularly if more rate cuts are announced.
However, it is still worth noting that interest rates, and therefore borrowing costs, are still high compared to recent times, with the base rate being as low as 0.1% just 3 years ago.
With a cashback credit card you’ll be paid back a percentage of what you spend on the card. Here’s how cashback credit cards work:
You’ll use your cashback credit card for everyday spending, whether that’s your weekly supermarket shop, eating out or one-off purchases
For many of the transactions you make on your cashback credit card, you’ll get a percentage of that spending back in cash
Pay off the card balance each month on time, in full. If you forget, the cashback you’ve earned will be wiped out by interest and fees
To get the most out of your cashback credit card, it's a good idea to abide by these rules...
There may be minimum spend requirement to be eligible for the cashback. You should also check if there is a limit on how much cashback you can get
Some cashback cards charge an annual usage fee, so be sure to factor in these extra charges when you're using your card
You can set up a direct debit from your bank account to pay off the full balance each month. What's more, because interest rates are typically higher on cashback cards, your debt could mount up quite quickly
The best way to reap the rewards of cashback cards is to use them for everyday spending, rather than treating yourself to big-ticket purchases that you might struggle to pay off without incurring interest. Make sure to stay within your credit limit
You can typically expect between 0.25% to 1% cashback, depending on your credit card provider. But in some cases, you may even be able to get an introductory rate as high as 5%.
So, for the sake of example, if you spent £100 per week on your card with an introductory cashback rate of 5%, you’d get £400 over the course of a year.
However, it’s worth noting that some cards feature a minimum spend before you qualify for cashback. So it’s important to check the small print before you sign up.
What’s more, cashback credit cards sometimes apply an annual limit on how you can earn too. This is most common during an introductory period, when the cashback on offer is higher than normal.
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Cashback credit cards are designed for everyday spending. If you’re unsure if your purchase will receive cashback, make sure to check with your credit card provider. You can typically earn cashback on:
When you apply for a cashback credit card, the lender will use your credit rating to decide whether to accept you, and what rates to offer you. Find out where you stand with our free Credit Monitor tool
You can earn cash rewards every you time you make a qualifying purchase. That’s money you wouldn’t otherwise have
Some cashback cards offer extra incentives, such as sign-up bonuses or rewards for hitting spending thresholds
Cashback incentives can be a temptation to spend more and rack up more debt
Cashback cards can charge high APRs if you’re unable to pay the full balance each month
There’s often an annual fee to pay too
Cashback credit cards, if used correctly, can provide you with a bonus pot of cash each month simply for spending as you usually would. However, they only make sense financially if you can clear them every month. That’s because if you start paying interest or fees, you’ll wipe out any cashback you make. It’s also important to choose one that suits your circumstances. For instance, if you pick a cashback card that rewards you for supermarket shopping and utility bills, be sure to use the card for this spending so you’re earning the maximum amount possible, and never be tempted to spend more just because you’re earning cashback on it.
If you feel that a cashback credit card could be right for you, the next step is to use the MoneySuperMarket Eligibility Checker to see what cards are available – and which are most likely to approve you.
We’ll ask you a handful of simple questions about you and your financial circumstances, and what you need from a credit card
We’ll sift through dozens of credit card offers from across the market, and then show you the cards we think will suit you best
You’ll be shown a range of credit cards, which you’ll then be able to sort according to APR, features and your chances of being approved
If you’ve struggled with credit in the past or have a low credit rating, you may find it hard to get a good deal on a cashback credit card. This is because lenders use your credit history to see how responsibly you’ve managed credit in the past, to decide whether to accept you for a credit card.
But while the best cashback cards could be out of reach, this doesn’t mean an instant ‘no’ to borrowing if you have bad credit. There are credit cards for bad credit designed for those who have low or no credit but they may come with lower credit limits and higher interest rates. As you pay off your balance each month, you will see your credit score improve over time which can give you access to better credit deals, including cashback cards.
Cashback cards and rewards cards are very similar. But while a cashback card gives you rewards in the form of money, a rewards card usually gives you other offers and benefits, such as store loyalty points, Air Miles or vouchers for particular retailers.
Think an Air Miles card might be right for you? Check our airmiles credit cards comparison page.
Considering a card that gets you specific rewards instead? We can help you with that too. Head to our rewards credit cards comparison page to find out more.
Both types of card work in the same way: the more you spend, the more you earn. However, rewards cards tend to earn your slightly more, albeit with the crucial proviso that they generally tie you into spending with certain retailers.
Conversely, cashback cards can feel more flexible but they may be slightly worse value in terms of the kickback.
Cashback cards typically have high APRs simply because they offer financial benefits (the cashback) and the card companies want to make money. If you carry a balance on your cashback card from one month to another, you’ll be paying interest on the borrowing.
This is what makes it so important to pay your balance off in full every month. if you don’t, you’ll almost certainly be charged more in interest from the high APR than you earned in benefits.
Cashback credit cards allow you to withdraw cash but, as with all credit cards, it’s not an efficient way to get money. Credit card companies tend to charge high fees to use their cards at an ATM, so it’s best to avoid doing this if you can.
Whether you’re eligible for a cashback credit card will come down to the provider’s view of your finances. They’ll take into account factors such as your credit score and ability to make repayments before approving your application. The good news is that if you use MoneySuperMarket to compare cashback cards, we can show you your chances of being accepted including any cards that you’re pre-approved for. This reduces the chance of being rejected when you apply.
Yes, it is possible to get a rewards debit card. You first need to apply for the current account that the card will be linked to. A rewards debit card then might give you 1% cashback on purchases, for example.
There is nothing to stop you taking out multiple rewards credit cards, but you may wish to look at whether it is a sensible choice. It might make sense if one is a dedicated store card for an outlet where you shop regularly and the other is a more general cashback card.
But if the features of the cards are similar, then simply having one card which offers the best rate could be a more straightforward option. What’s more there’s less chance of you overspending or getting into debt.
That largely depends on your shopping habits and which outlets you use. However it’s fair to say that American Express are generally the top-paying cards.
Other cashback credit cards that typically get you a lot of bang for your buck include Asda and John Lewis storecards, as well as Tesco Bank’s Mastercard which bags you Clubcard points.
Yes. Just like standard credit cards, with rewards cards you’ll be covered by Section 75 of the Consumer Credit Act.
That means if you buy something priced between £100 and £30,000 in the UK or overseas and something goes wrong, the card issuer is jointly liable.
You can use Section 75 to claim a refund in the event that you pay for a service you did not receive, or pay for goods that did not arrive.
Cashback rewards can vary among card issuers like American Express, Mastercard, and Visa. American Express often offers higher cashback rates in specific categories such as groceries and dining but might have more limited acceptance.
Mastercard is widely accepted and provides versatile cashback options across various categories.
Visa also offers broad acceptance and competitive cashback rates, often including additional perks like purchase protection. When choosing a card, compare the cashback rates, acceptance, and any annual fees associated with each provider.
If you’re applying for a credit card, you might be able to find a better deal if you look through offers from different providers before taking one out. With MoneySuperMarket you’ll be able to search through multiple credit cards and compare them by a range of factors, including their interest rates and any benefits and rewards they come with.
All you need to do is answer a few questions about yourself and your financial situation, and our Eligibility Checker will show your chances of being accepted for different credit cards. This won’t affect your credit score, so you can run a check without any worries.
Once you know which card you want, you can normally apply by phone, online, or in person if the provider has a high street branch. However, when you do apply, the provider will usually run a hard credit check – which will show up on your credit report – to confirm whether they’ll give you the card. If you’re accepted they’ll tell you your credit limit and interest rate, and soon you’ll be ready to start using your credit card.
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So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.
But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.
