Halifax Cashback Credit Card review 2022

With no annual fee, this cashback credit card could be a good option for those looking to earn something back as they spend.

  • A low-cost card that offers uncapped cashback.
  • Standard rate of interest applies if you don’t clear your balance each month.
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Representative example: When you spend £1,200 at a purchase rate of 19.94% (variable) p.a., your representative rate is 19.9% APR (variable).

Earn 1p

per £2 spent

Up to £20

Intro cashback

19.9%

Representative APR

£0

Account fee

Details

IssuerBank of Scotland
NetworkMastercard
Annual/monthly fees£0
Balance transfers19.93%
Balance transfer fee5%
Purchases19.94%
Purchases interest-free periodUp to 56 days
Money transfers19.93%
Cash advances19.94%
Minimum credit limit£0
Maximum credit limitNot specified
Additional cards available1
Incentive
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★★★★★
Doing its job★★★★★
Extras★★★★★
Overall Finder rating★★★★★

Review by


Keith Kilcourse is a publisher at Finder.com, covering credit cards and loans. Ex-MoneySavingExpert alumni, passionate about helping consumers make the right choices when it comes to credit. In his spare time he enjoys complaining about the cost of living in London.

Expert review

If you’re looking for a credit card that allows you to earn cashback on pretty much all of your everyday spending, the Halifax Cashback credit card could be the answer. Although its cashback rates are not as high as some deals on the market, it makes up for this by not charging an annual fee or capping the amount you can earn. You’ll be able to earn up to 0.25% cashback on your first £4,000 of purchases per calendar year, plus 0.5% on further purchases after that point.

Where you won’t earn cashback is on any balance or money transfers, cash withdrawals, gambling transactions, account interest, fees or charges, payments to current accounts or savings accounts, and payment protection transactions. However, this is pretty standard for cashback cards.

To get the most out of earning cashback, you’ll need to use your credit card for most of your regular spending. However, it’s crucial that you pay off your balance in full each month, otherwise the amount of interest charged could far outweigh the amount of cashback earned. You’ll pay a fairly standard variable interest rate of 19.94% on purchases if you don’t clear your balance each month. The easiest way to ensure you pay off your balance on time is to set up an automatic monthly direct debit for the full balance. The same 19.94% interest rate applies to cash withdrawals, but note that you will be charged interest from the moment you get your cash, so it’s best to avoid withdrawing cash with your card.

Cashback is paid into your credit card account every January which can help reduce your balance. However, it won’t count towards your minimum payment. When applying for the card, Halifax offers its own eligibility checker, Simple Check, which allows you to see how likely you are to get accepted for the card, before making your application in full. It will also give you an estimated credit limit.

Overall, if you’re looking for a straightforward cashback credit card with no annual fee, Halifax’s offering is well worth considering.

Pros and cons

Pros

  • Customers report excellent customer service when dealing with Halifax
  • Earn cashback on day-to-day spending
  • Up to £20 introductory bonus cashback
  • No annual fee

Cons

  • Relatively high balance transfer fee

How does it compare with other cashback deals?

Table: sorted by representative APR, promoted deals first
Name Product Rewards earn rate Max. intro bonus Purchases Representative APR Link Incentive Representative example
Santander All in One Credit Card
0.5% cashback
N/A
0% for 23 months reverting to 18.9%
24.7% APR (variable)
Check eligibility
0.5% after £1 of monthly spend. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a. with a fee of £3 per month, your representative rate is 24.7% APR (variable).
American Express Platinum Cashback Everyday Card
1% cashback
£100
25.3%
25.3% APR (variable)
Go to site
New cardmember offer: Get 5% cashback on your purchases (up to £100) for the first three months of Cardmembership and an extra £20 bonus cashback. Offer ends 6 July 2022. Terms and minimum spend apply. Spend £0 to £10,000 and receive 0.5% cashback on all purchases. Spend over £10,000 and receive 1% cashback on purchases.
Representative example: When you spend £1,200 at a purchase rate of 25.3% (variable) p.a., your representative rate is 25.3% APR (variable).
American Express Platinum Cashback Card
1.25% cashback
£125
25.3%
30.7% APR (variable)
Check eligibility
New cardmember offer: Get 5% cashback on your purchases (up to £125) for the first three months of Cardmembership and an extra £35 bonus cashback. Offer ends 6 July 2022. Terms and minimum spend apply. Spend £0 to £10,000 and receive 0.75% cashback on all purchases. Spend over £10,000 and receive 1.25% cashback on purchases.
Representative example: When you spend £1,200 at a purchase rate of 25.3% (variable) p.a. with a fee of £25 per annum, your representative rate is 30.7% APR (variable).
AIB Options 1 Credit Card
0.5% cashback
£25
18.9%
18.9% APR (variable)
0.5% after £5000 of yearly spend. Minimum of 12 transactions per year required. Maximum of £250 cashback paid per year. Cashback paid Anniversary into Card Account. For initial £5K a £25 cashback is paid, plus an additional £1 for every further £200 spent.
Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).
smile Classic Credit Card
0.25% cashback
N/A
19.9%
19.9% APR (variable)
0.25% after £1 of monthly spend. Cashback paid Monthly into Card Account.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Halifax Cashback Credit Card Mastercard
0.5% cashback
£20
19.94%
19.9% APR (variable)
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.
Representative example: When you spend £1,200 at a purchase rate of 19.94% (variable) p.a., your representative rate is 19.9% APR (variable).
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Approval for any credit card will depend 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.

Repayment options

You can make manual repayments through Halifax's app, by logging in to your online banking or over the phone (0345 944 4555). 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 Halifax 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.

Frequently asked questions

Can I withdraw cash using the Halifax 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 Halifax Cashback Credit Card is 5%.

The interest rate on this part of your balance will be 19.94% (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 Halifax Cashback Credit Card abroad?

Non-sterling transactions are subject to a 2.95% charge. For example, if you spend 200 euros (£169.51), it'll cost you around £5.00 in fees.

What is the minimum payment on the Halifax 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.

Finder credit card ratings

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★★★★★ — Good
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★★★★★ — Poor

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.

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.

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