Cashback credit cards

Compare cashback credit cards 

There’s a huge range of credit cards out there, many of which come with rewards – and cashback is just one of those. Every time you use your card, you’ll get back a ‘cash’ percentage of what you spend. So, for example, if your credit card gives you 1% cashback and you spend £200, you’ll get £2 back. 

While it’s an attractive incentive, cashback cards tend to have higher interest rates. Unless you can be sure to pay off your credit card in full every month, it might not be the best borrowing option.

How do cashback cards work?

As you spend money on your credit card, you’ll accumulate a cash reward. The ideal scenario is that you use cashback cards to pay for your everyday spending, instead of a debit card or cash, and pay back everything you owe each month. That way you benefit from the cashback without paying interest. 

Different providers may offer different ways of giving cashback. For example, you might get:  

• a simple flat rate, or a tiered rate: the more you spend, the higher the level of cashback
• a high introductory rate or bonus cashback for a limited period
• higher cashback rates for shopping with certain retailers
• extra cashback for things like fuel.  

The cash you get is typically paid monthly or yearly. How it’s paid will again depend on the provider. Options might include: 

• automatically adding it to your credit card balance, directly reducing the amount you owe
• transferring it to your current account
• converting it into reward points that can be redeemed once you reach a certain amount
• converting it into a charitable donation. 

With some rewards cards, you might only receive cashback once you’ve met the pre-agreed minimum spend on the card. Or there may be a cap on how much cashback you can get, so make sure you check the terms and conditions carefully. 

Rewards-based credit cards, like cashback, only work for you if you can pay off the card in full each month. Otherwise, the cash you get back will be eaten up by the interest charged on the remaining balance. Like other types of credit card, there’ll also be a credit limit – you’ll be charged if you go over it and this could affect your credit rating. 

Likewise, cashback cards are only worth it if you get back more in cashback than you pay in fees. Some providers charge hundreds of pounds in fees per year on their most exclusive cards. Other providers charge up to £15 a month, so you need to consider if this kind of card makes financial sense for you before applying.

How can I find the best cashback card for me?

It’s worth comparing what different cashback credit cards offer to find the best deal for you. Check out: 

• Any introductory offers and how long they last.
• Whether there’s a monthly or annual fee.
• The APR - the interest you’ll pay can depend on your credit history. You might not get the advertised rate.
• Whether you need to spend a minimum amount before you can start getting cashback. 

Make sure you check the terms and conditions carefully before applying. You’ll need to work out if the cash you’ll get back makes up for any associated fees. You don’t want to rack up a huge credit card bill for the sake of receiving a bit of extra cash. Remember, if you can’t pay back what you owe in full each month, the interest will start to build and you could end up in debt.

Where can I compare cashback credit cards? 

You can use our eligibility checker to see what cashback credit cards you’re most likely to be accepted for, without affecting your credit score. All you have to do is enter a few details. 

Check credit card eligibility  

If you'd prefer to browse our list of credit cards before checking your eligibility, find out which credit cards we compare.

Compare the Marked Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and availability.

Looking for something else?

Loans

Savings Accounts