Lloyds Bank Cashback Credit Card review
- Representative example:
- When you spend £1,200 at a purchase rate of 22.94% (variable) p.a., your representative rate is 22.9% APR (variable).
- Earn rate
- 1p per £4 spent
- Intro cashback
- Up to £20
- Account fee
- £0
Our verdict
If you fancy earning something back as you spend, you might want to look at the Lloyds Cashback credit card.With no monthly or annual fees to worry about, this credit card is a straightforward cashback card that enables you to earn 0.25% cashback every time you make a purchase on your card. This feature can make it ideal for regular spending or if you’re planning a one-off chunkier purchase, such as a holiday or a new car.
Cashback is applied to your account every January, reducing your balance, but interest is charged if you don’t pay off your balance in full each month. The amount of interest you pay could outweigh the value of any cashback earned, so this card is really only suitable if you can afford to clear your balance each month.
It’s also important to note that the cashback rate isn’t the most generous, so it’s worth comparing all your options first.
Details
Product Overview
| Issuer | Lloyds Bank |
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 22.94% |
| Balance transfer fee | 5% |
| Purchases | 22.94% |
| Purchases interest-free period | Up to 56 days |
| Cash advances | 22.94% |
| Minimum credit limit | £0 |
| Maximum credit limit | Subject to status |
| Additional cards available | 1 |
| Additional Rewards Info | Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit card. Customers must be registered for Online Banking and hold a Lloyds Bank current account to be eligible. |
| Introductory Rewards | £20 cashback if £1,000 of purchases made within 90 days of opening. |
| Cashback details | 0.25% on £1 to £4000 of yearly spend. 0.5% after £4001 of yearly spend. Cashback paid January into Card Account. Maximum spend for cashback purposes is limited to credit limit. |
| Potential costs | 3.2 ★★★★★ |
| Doing its job | 2.5 ★★★★★ |
| Extras | 4.3 ★★★★★ |
| Overall Finder Score | 3.3 ★★★★★ |
Fees and charges
| Minimum monthly payment | 2.5% or £5 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 5% |
| Foreign usage charge (EU) | 2.95% |
| Foreign usage charge (rest of world) | 2.95% |
| Cash advance fee | 5% (min. £0) |
| Late payment fee | £12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application Requirements
| Minimum Age | 18 |
| Availability | Available to new customers |
The Lloyds Bank Cashback Credit Card is issued on the Mastercard network, so it's accepted at more than 50 million merchant locations across more than 210 countries and territories.
How does the Lloyds Cashback credit card work?
The Lloyds Cashback credit card is a straightforward rewards card that enables you to earn cashback at a rate of 0.25% every time you spend on your card. Adding an extra cardholder to your account will help you earn cashback quicker, but you will still be responsible for paying the bill.
Cashback is applied to your account each January, reducing your balance. But you’ll still need to make at least the minimum repayment on time each month. Otherwise, you risk incurring late payment fees and hurting your credit score. Your cashback benefit will also be removed if you miss payments.
If you don’t pay off the balance in full each month, you’ll pay interest, which could outweigh any cashback earned.
Key features of the Lloyds Cashback credit card
- Earn cashback. Earn 0.25% cashback every time you spend on the card.
- Cashback added to your account. Each January, cashback will be applied to your account, reducing the balance.
- No monthly or annual fee. There are no fees for holding the card.
- Fraud protection. You won’t be charged for transactions you didn’t authorise. But you must let Lloyds know if you lose your card or notice anything unusual.
- Section 75 cover. Purchases costing more than £100 and up to £30,000 are protected under Section 75.
- Online card management. Register online to check your balance, review transactions, make payments and more.
What benefits can I get with the Lloyds Cashback credit card?
Earning cashback
With the Lloyds Cashback credit card, you’ll earn 0.25% cashback for every £1 spent. The more you spend, the more you’ll earn.
As an example, if you spent £2,000 a month on your credit card, you’d earn £5 a month, or £60 in cashback over the course of a year.
But if you increased your spend to £4,000 a month, you’d earn £10 a month, or £120 cashback in a year.
Redeeming cashback
Cashback can only be redeemed each January when it is automatically applied to your account to reduce your balance.
What other rewards cards does Lloyds offer?
As well as the cashback credit card, Lloyds also offers the World Elite Mastercard. This rewards card offers a higher level of cashback, plus travel benefits such as Priority Pass airport lounge access and Airport Security Fast Track. However, the perks are offset by a monthly fee.
How much does the Lloyds credit card cost?
There is no monthly or annual fee to pay with the Lloyds Cashback credit card.
However, if you don’t pay off your balance in full each month, you’ll be charged interest. What’s more, if you miss a payment, a late payment fee of £12 will apply.
A 2.95% foreign exchange fee applies if you use your card overseas.
Who is eligible?
To be eligible for a Lloyds Cashback credit card, you must:
- Be a UK resident.
- Be aged 18 or over.
- Be employed and have a regular annual income.
- Not have any CCJs, individual voluntary arrangements or bankruptcies on your credit file.
In addition, you must not be a student and you must not have been declined for a Lloyds Bank credit card in the last 30 days.
How to apply for the Lloyds Cashback credit card
You can apply for the Lloyds Cashback credit card online. It’s best to use the eligibility checker on the Lloyds website first to find out how likely you are to be accepted for the card, as this won’t affect your credit score. To do this, you’ll need to fill in a short form, providing a few personal details.
You should get an answer within 5 minutes and be able to see your estimated credit limit. If you’re happy, you can then go ahead and apply in full.
How does it compare?
Lloyds Bank's card
Other popular cashback deals
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.
Repayment options
You can make manual repayments through Lloyds Bank's app by logging in to your online banking or over the phone (0345 602 1997). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee (£12) or losing any promotional rates as a result.
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | |
|---|---|
| Fixed amount | |
| Fixed percentage | |
| Full amount |
How to apply
If you've compared cards and settled on the Lloyds Bank Cashback Credit Card, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible.
If you’re looking for a cashback credit card with no annual fee, the Lloyds Cashback credit card is certainly worth considering.
However, its cashback rate isn’t the most competitive offering, so you’ll need to spend a fairly large sum on your card to earn a decent amount of cashback. That said, it’s crucial to only ever spend an amount you are confident you can afford to repay. Otherwise, you’ll pay far more in interest than you’ll earn in cashback.”
If you’re interested in this card, check your eligibility and apply via the provider’s form. If this card is not for you, compare others in our full guide.
Frequently asked questions
Can I withdraw cash using the Lloyds Bank Cashback Credit Card?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Lloyds Bank Cashback Credit Card is 5%.
The interest rate on this part of your balance will be 22.94% (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
How much does it cost to use the Lloyds Bank Cashback Credit Card abroad?
Non-sterling transactions are subject to a 2.95% charge. For example, if you spend 200 euros (£165.32), it'll cost you around £4.88 in fees.
What is the minimum payment on the Lloyds Bank Cashback Credit Card?
Each month, you must pay at least 2.5% of your balance at that point or £5.00 – whichever of the 2 figures is greater. So if you had, say, £180.00 outstanding, you'd pay £5.00, and if you had £800.00 outstanding, you'd pay £20.00.
Paying only the minimum required amount each month is generally not advisable as it tends to be a very expensive way to borrow money, which can lead to persistent debt.
Can I request an additional Lloyds Bank Cashback Credit Card?
Yes, you can request one more. There's no fee for additional cards. Plus, with additional cards, you could earn cashback at a faster rate. Bear in mind that card debt accrued by additional cardholders is the sole responsibility of the account holder – not the additional cardholder.
Finder credit card scores
Our experts score cashback credit cards to determine their value against similar products on the market. We look at a number of important factors, like welcome bonuses, introductory and ongoing earn-rates, any limits or restrictions to earning cashback, plus the potential costs involved with running the card both in the short and longer term.
You can read more about our scoring criteria on our credit card methodology page.
Your reviews
