No annual fee Earn cashback on day-to-day spending Up to £20 introductory bonus cashback
To choose the best card for each category shown above, our experts analysed rates, features and perks for cards from the current market. If we show any "promoted" picks, these are based on factors that include special features or offers and the commission we receive. If we show any "best" picks, these are our credit card editor's top picks for different categories and are chosen based on factors that include costs, purpose, rewards and extras. You can read our full methodology here. Keep in mind that our picks may not always be best for you – it's important to compare for yourself and find a card that does the job you need it to do.
Cashback credit card comparison
Table: sorted by representative APR, promoted deals first
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
What are cashback credit cards?
Cashback credit cards earn you cash in proportion to the amount you spend on them. This is known as your “earn rate”. A card that rewards you with £1 for every £100 you spend would have an earn rate of 1%, for example. Higher earn rates might be offset by an annual fee – but depending on how much you plan to use the card, a fee could be worth paying.
Earn rates aren’t as high as they were a few years ago, and there are fewer cashback credit cards around, but there are some tasty intro bonuses up for grabs, from elevated earn rates for a set period to one-off lump sums – provided you meet the minimum spend requirements.
Some cards just offer the occasional opportunity to earn cashback when you spend with a specific brand that they’ve decided to partner with, but dedicated cashback cards let you earn money back on every purchase.
How do cashback cards work?
A cashback credit card gives you cash rewards on pretty much all your spending – usually in the form of credit on your account. The offers vary between cards, with each card offering the potential to earn at different rates (sometimes multiple rates depending on where you spend) and some offering an introductory “sign-up” bonus as a sweetener.
In fact, there are three main ways you can earn cashback on your credit card purchases, which we’ve outlined here:
Instant cashback when you make an eligible credit card purchase. For example, if you make a credit card purchase of £1,000 and there is a 2% cashback promotion, the credit card provider will give you £20 back.
Cashback promotional offers on sign up. Some cards have a cashback promotion for new customers. These offers usually require you to apply before a set date and spend a specific amount within the first few months you have the card.
Cashback via a credit card rewards program. As well as using points for flights or merchandise, some credit card rewards programmes, give you the option to redeem your points for cashback on your account.
Is there a catch?
Just like other reward credit cards, you need to meet the spending requirements or eligibility requirements to earn cashback. For example, cashback may only be earned on “eligible purchases”, with common exclusions including cash advances, balance transfers and refunded purchases. Some cashback credit cards may also cap or limit the amount of money you can earn per month or year. Make sure you read the card’s Product Disclosure Statement for more information.
How to choose cashback credit cards
Here are the key details to look at when you’re comparing different cashback credit card options:
The cashback amount. Weigh up the value of the cashback you can earn based on your spending habits and the overall cost of the card (i.e. the annual fee and purchase rate). This will help you decide if the rewards are worth it.
Reward caps. Some cashback cards limit the amount of money you can get from them. For example, you might be able to get 1% cashback per £1 spent but have a limit of £50 per month.
Introductory offer requirements. If the cashback reward is offered as a special promotion, make sure you understand the terms and conditions before signing up. Depending on the offer, you may want to look for the date the offer expires, spending requirements or participating retailers to take advantage of the cashback reward.
Ineligible transactions. While most everyday purchases are eligible to earn cashback rewards, transactions such as cash advances, bill payments and credit card fees are usually ineligible. Check these details before you get a card to decide if it suits your spending habits.
Rewards value. If you have a card that earns points and want to redeem them for a cashback reward, check to see if there are other rewards (such as flights, travel upgrades or merchandise) that have a retail or regular price value that is higher than the cashback amount. This will help you get the most value out of your rewards.
Annual fee. Weigh the card’s annual fee against the cashback you expect to earn to work out how much value you’ll get from the rewards. Ideally, the amount of cashback you get should be worth more than the annual fee.
Other card features. Make sure you also consider the card’s standard variable purchase rate, as well as any additional charges, fees and complimentary extras. Along with the rewards and annual fee, these features will help you decide if the card suits all your needs.
Set up a direct debit to clear your full balance each month and there’s no reason why you can’t “beat the bank” – with a card that gives you money, rather than costing you money. But if you’re paying the bank 21% while they pay you 1%… then you’ve probably got the wrong deal.
Cashback calculator
This tool is designed to help you establish whether or not a particular cashback card would be worth it for you. Bear in mind that the calculation is based on clearing your balance each month, not using the card for cash advances, etc., so that you don’t incur any interest or fees other than any obligatory annual/monthly account fees. Don’t forget that, depending on the card issuer, some transactions might not be eligible for cashback, and cash advances definitely won’t be.
Expected annual spend
Cashback earn-rate
Account fee (per annum)
Expected annual spend
Cashback earn-rate
You’d earn £ in cashback over the year. Taking into account fees of £, you’d pocket £.
Advantages and drawbacks of cashback offers
Weighing up some of the pros and cons could help you determine whether a cashback credit card is right for you.
Pros
Money in your pocket. This type of reward offer gives you the chance to get money back for paying with plastic.
Pound value. Instead of earning points per £1 spent, cashback credit cards offer a straightforward reward. If you know roughly how much you’re going to spend, you can easily calculate the potential benefit of cashback.
Other extra features. Credit cards with cashback promotions may offer other features such as complimentary travel insurance, rewards programmes and concierge services.
Cons
Annual fees. To access higher earn rates, you’ll generally have to pay an annual fee. The value you get back from the rewards should be higher than the annual fee – if it isn’t, the card’s not worth your while.
Rates of interest. If the cashback offer is a feature of a more premium product, you may find that it comes with higher interest rates. Make sure you can repay the amount you’ve charged for the cashback (as well as other purchases) before the end of the statement period.
Limited rewards. Some cashback credit cards may have a cap on the number of times you can redeem a cashback offer. For example, some may only allow you to receive the cashback once, while others may allow you to take advantage of it up to a capped amount of times in a set period.
Encourages spending. As with any rewards card, you earn through spending. You know yourself and if chasing cashback could tempt you into spending more than you can afford to pay back, an incentivised credit card might not be the right card for you.
How to apply for a cashback credit card
If you’ve decided you want a cashback credit card, you can apply online in around 10-15 minutes via a secure web service. But before you apply, make sure you meet the eligibility requirements and have the necessary documents needed to complete your application. These will vary from card to card, but you can usually expect the following:
Eligibility requirements
Age. Cardholders must be at least 18 years of age.
Residential status. Most credit cards require cardholders to be permanent UK residents.
Minimum income. The minimum income requirement will vary between cards. Some providers don’t require you to have any guaranteed yearly income at all. Some providers will specify simply that you must have a regular income, and some will require a minimum household income.
Credit history. Most UK credit card issuers require applicants to have a good credit history, although there are cards available for those with poorer credit ratings.
Necessary documents and information
Proof of identification. You’ll be required to provide a copy of your driver’s licence and/or passport for proof of identification.
Proof of income. You’ll be asked to provide your employer’s details, as well as a recent tax return and/or payslips. If you’re self-employed, you’ll need to include your accountant’s details.
Financial information. You will need to provide other information about your finances including debts, liabilities and expenses.
Once you’ve provided all of this information and hit “submit”, you should receive a response regarding your application within 60 seconds. If you’re approved, you’ll receive your card in the mail within 1-2 weeks. If the card has a cashback offer, you should read the Product Disclosure Statement to confirm the terms and conditions and when you can expect to receive the cashback credit in your account.
If you’re looking for a new credit card, a product with a cashback offer could provide you extra incentive to pay on plastic. While cashback offers can be rewarded, they always come with terms and conditions, so make sure you understand what these are and compare your options before you apply for the card.
What’s the best cashback credit card for bad credit?
Unfortunately, you’ll generally need a good credit score in order to be eligible for the best cashback credit cards. Even if you’re eligible, you’ll probably receive a much higher interest rate, which means it’s important that you pay off your balance in full each month. If you don’t, the interest you pay will likely outweigh any money you get in cashback.
Bottom line: is a cashback credit card worth it?
If you use your credit card regularly, but are still able to pay off your balance each month, a cashback credit card can give you a better return on your spending. You’ll earn cashback on all your purchases, which can make a big difference over time, as long as you’re disciplined about using your card.
If you don’t use your card much, or have trouble clearing your monthly balance, you may find a cashback credit card doesn’t represent good value for money, especially if it also charges an annual fee.
Earn cashback on business spend
A business credit card is a great way to boost spending power and enjoy a little flexibility in handling your company’s cashflow. But on top of this, you can enjoy perks like cashback – potentially on multiple cards, rather than just one.
Frequently asked questions
No, cashback on credit cards are not subject to tax as it is seen as rebate on money you’ve spent rather than your income.While the cashback rate varies from product to product, most cashback returns are somewhere between 1% and 2% of the total value of the transaction. This figure can jump when you look at merchant and retailer bonus cashback reward schemes, or when a fixed rate of cashback is offered (ie. £20 when you first use the card).
Yes, you can generally use cashback rewards to pay your card’s annual fee or the outstanding balance of a credit card.
Currently, there are no credit cards in the UK that offer 10% Cashback on your spending. 5% is the highest available cashback deal, the Amex Platinum Cashback Everyday offers 5% cashback up to £100 during the first three months of card membership.
This depends on your provider. Some providers pay cashback monthly, quarterly or annually. Some cards may require a minimum yearly spend before you qualify for the cashback reward. Always check the terms of the deal before applying.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
The gulf between the amounts received by men vs women from government-backed startup loans has widened, despite calls for more funding for women entrepreneurs.
More than 13 million Brits plan to open an ISA after the new financial year starts on 6 April, according to a new Finder survey.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Here are the key details to look at when you’re comparing different cashback credit card options: