Royal Bank of Scotland credit cards

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.