Compare cashback credit cards

Cashback credit cards – all you need to know

Credit cards that ‘reward’ you for using them are increasing in popularity, and they can be a great way to earn something back, so long as you use them sensibly.

With a wide variety of cashback and rewards available on the market, comparing what’s out there will help you to decide whether a cashback card is right for you.

What is a cashback credit card?

Cashback credit cards offer money back as you spend. In other words, when you make a purchase, you’ll earn a percentage of that spend back.

The rate of cashback can vary depending on where you shop, or it might vary depending on the amount you spend. Some purchases might not earn you any cashback at all.

The money is paid monthly or annually as credit on your credit card balance. However, the maximum amount you can earn is usually capped.

Different cashback rates

Some cashback cards offer different cashback rates for certain types of spending: you might, for example, earn 1% cashback if you use your card in a particular supermarket and 0.5% for spending elsewhere.

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 will only offer cashback if you spend at a certain store and others pay a high introductory cashback rate for a limited time. This means you could earn 5% cashback for the first three months, but move onto a standard rate of 1% after that.

What is the interest rate on a cashback credit card?

It’s important to be aware that the annual percentage rate (APR) on a cashback credit card is typically higher than on a standard credit card. A typical card might charge 18.9% APR, but a cashback card could charge 22.9% APR or more.

To avoid paying these high rates, it’s always best to clear your balance every month and don’t spend more on your card than you can afford to pay back.

Is it worth getting a cashback credit card?

Before you get a cashback credit card, it’s worth considering how much you spend each month and where you spend it.

Keep in mind that cashback credit cards generally have a higher rate of interest, so it’s best to only apply for one if you know you can afford to pay off your balance in full each month – otherwise the interest charged will fast outweigh the benefits.

Some cashback cards will also have a monthly or annual fee, so you need to consider whether this cost will outstrip the amount of cashback you earn.

Generally speaking, if you spend a lot on your card and clear your balance each month, a cashback card can be a great way to earn something back.

Another good way to use cards like these is to use them for big-ticket items such as holidays or furniture, and take advantage of introductory offers.

Compare and find the best cashback card

For those who pay off their credit card bill in full each month, a cashback card can be a great way to earn a little extra. But with so many different cards and cashback rates on offer, it can be tricky to find the best deal.

Comparing cashback credit card deals with MoneySuperMarket makes it easy. We compare cashback credit cards from leading issuers to help you pick the right card – and our Eligibility Checker will show you how likely you are to be accepted for each card, without hurting your credit score.

We're free and independent, as well as offering exclusive deals you can't get anywhere else.

Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable).

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.