A simples guide

Cash back credit cards

A credit card that gives you money - sound too good to be true? Well, fortunately for us, it is true. Imagine that; earning money as you spend it. If you’re in the market for a credit card, then keep reading.


What are credit cards with cashback all about?

A cashback credit card usually has all the regular features of a credit card in the sense that you use it to buy stuff on credit up to a set limit. The difference with a cashback credit card is that it gives you back money on certain purchases you make with that card.

The money that you get in return could be a percentage of what you spend (sometimes capped at a particular limit) or a set cash amount. It could be paid to you monthly or yearly – the exact terms of any cashback credit card will come down to the credit card provider.

Gold credit card
coins and card

How do I compare cashback credit cards?

Well that’s the easy bit, you can compare cashback credit cards with us and make sure you’re getting the card that’s right for you. But before you leap in and start on a mammoth spending spree, here are some things you need to consider first:

What type of rewards you get: Different cards will give you different amounts back, this could be based on where you did your shopping (for example you could get 1% cashback on things you bought in supermarkets and 2% on stuff bought everywhere else). Some credit card providers might also incentivise you by giving you more cashback for shopping in their stores.

Other cash back credit cards have a sliding scale of rewards and what you get is based on what you spend over the course of a year. So you could get 2% cashback on everything you bought in a year if you spend £5,000 but you could get 4% cashback if you spend more than that.

More information

Introductory periods:  Some credit card providers will give you great introductory offers to tempt you and then scale back the rewards after a certain amount of time. Make sure you always read the small print to see what those scaled back rewards are, there’s nothing worse than having friends with no benefits.

Credit card fees: The devil’s in the detail and not all credit cards are free all of the time. Some will charge you an annual fee and those fees will differ according to the credit card providers (some will be much higher than others so always check). If you don’t use your credit card much, then think about whether the fees are worth it. There’s no point getting all that cashback if you then have to give it back for the privilege of having the card live in your wallet.

Your spending habits: Think about how you use cash and any existing cards. If you don’t use a credit card much, will having a cashback card make any difference or will it just encourage you to spend money you don’t have? If you have several cards (and are really good about paying them off in full), consolidating to one card that gives you cashback might make life easier as well as rewarding you for it.

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How do I pay off my cashback credit card?

As with any credit card – you should always make the minimum payment every month and try to pay it off in full every month to avoid any interest charges. This is especially true of cashback credit cards- as you may not receive any reward if it’s not paid off.

The easiest way to make sure you pay it every month is to set up a direct debit, and your credit card provider will then automatically take out what you owe each month. One top tip is to make sure that you write ‘pay off in full’ on your direct debit agreement otherwise you might find your credit card provider only takes the minimum amount due back.

Credit cards are great if used sensibly. They provide a helping hand when everyday funds are running a bit low or if you need to make a large purchase and want the extra protection that comes with a credit card. But it’s really important to make sure you can always afford the monthly repayments.

So if you’re looking for cashback credit card and you want to find a good deal, you can compare cashback credit cards with us now and make sure you find the right product for you.