Best Cashback Credit Cards

What is a cashback credit card?

Cashback credit cards are a type of rewards credit card that pay you back a percentage of the amount you’ve spent on the card.

For example, if you spend £3,000 on a card that offers 0.50% cashback, you’ll receive £15 from the provider.

While a credit card that essentially pays you every time you spend can be appealing, they are only really beneficial to those who pay off their credit card every month. If you don’t clear your balance each month, the interest you would be charged is likely to cancel out any cashback you earn.

How much cashback will I earn?

The amount of cashback you earn will vary, with some cards only offering cashback of 0.25% or 0.50% while the best cashback cards could offer 1% or more.

There are also different types of cashback schemes available (listed below), so it’s always worth checking the terms of the card.

• A standard, flat rate. This is the most basic and simple form of cashback, as you will earn a fixed percentage cashback on all your card spending (such as 0.50%).
• A tiered rate. This is when you earn a higher rate of cashback if you spend above a certain limit. For example, you could earn 0.50% cashback on any card spending up to £15,000 per year, and 1.00% cashback on all spending above this.
• Retailer-specific rates. Some cards may pay a higher rate of cashback on spending at certain retailers, and a lower cashback rate on all other spending.
• Introductory cashback rates. Some providers may offer a higher rate of cashback on your spending for a limited period, such as the first three months after opening the card. Always check what the cashback rate will revert to once the introductory offer ends.

As well as the cashback rate, make sure to consider any limits providers may set on the total amount of cashback you can earn. For example, a provider may cap the total cashback it will pay to £10 or £15 a month.

The table below indicates how much cashback you could earn, based on your spending levels and the rate of cashback paid.

How is cashback paid on a credit card?

Credit card cashback is normally paid out automatically, often every year, although some providers can pay it every month.

It will either be paid to your credit card account (reducing your card balance) or you may be able to have it paid into your current account.

Are there situations where you won't earn cashback?

You are unlikely to earn on cashback on certain transactions, such as:

• gambling payments
• cash withdrawals
• balance transfers
• buying foreign currency.

Bear in mind that providers may set their own rules. For example, if a card has a tiered cashback offer, certain types of transactions or purchases made at particular retailers may not be eligible for the higher rate of cashback but may qualify for a lower rate. Check the terms of a credit card to find out what is and isn’t eligible for cashback.

What to look out for

When you compare cashback credit cards, there are a number of features to look out for, including:

• Fees: Some cashback credit cards charge monthly or annual fees, so it’s important to factor these in when deciding whether a cashback credit card is worth getting. If you don’t want to pay for a card, there are cashback cards with no annual fee available.
• Introductory offers: Check if a credit card offers a higher cashback rate or other perks as part of a limited introductory offer. These can be attractive incentives to choose a card, but make sure you’re aware when the offer expires
• Minimum spend: Check if a provider will only pay cashback if you spend above a certain level on your credit card.
• Tiered cashback: Providers may offer different levels of cashback, depending on the amount you spend. For example, you may earn a higher percentage cashback if you spend above a specified threshold.
• Special offers: Cashback cards may offer additional cashback or other perks on particular types of purchases (such as fuel) or when you spend at specific retailers, for example.
• Limits: Providers may limit the total amount of cashback you can earn on a credit card each month or year.
• Eligibility criteria: When comparing cashback cards, it’s important to check if you’re eligible. For example, providers may set minimum income levels, and some cards may only be available to customers who have a current account with the provider.
• The interest rate: Ideally you will pay off your card in full each month without paying any interest. However, you should still consider the interest rate when comparing cards.
• Other features: As well as the cashback offer, it’s also worth checking if there are any other perks, such as an interest-free period or a reward scheme.

Every cashback credit card is different, so it’s crucial to check the terms and conditions before applying.

Are cashback credit cards worth it?

Because credit cards with cashback pay you for essentially doing nothing, many people could find they are a useful way to get a little extra money. They may be worth having if you:

• plan to use the card for your daily spending
• will be able to clear your card balance in full each month
• won’t be tempted to overspend
• want a relatively easy way to get a boost on your spending.

However, cashback credit cards may not be suitable, or the most rewarding, option for some individuals. For example, they may not be worth it if you:

• want to borrow money on a card to spread the cost of a large purchase
• won’t be able to afford to clear your balance each month
• have existing credit card debt that you’re trying to clear
• could receive a greater return with a rewards credit card (if you regularly shop at a certain brand, for example).

How can you maximise the benefits of a cashback credit card?

To maximise the benefits, ideally you should aim to use a cashback card instead of a debit card to pay for as much of your everyday spending as possible, including groceries, eating out, shopping and more. By doing this, the cashback you earn can quickly add up.

At the same time, ideally you need to pay off your balance in full every month to avoid paying interest. This means it won’t cost you anything to use the card to receive the benefit of cashback.

You can set up a Direct Debit to make sure you pay off your card each month and don’t accidentally miss a payment, as the cost of late or missed payments could quickly cancel out the benefits of any cashback rewards.

What is the best credit card for cashback on the market?

At the time of writing (24 July 2026) American Express offers the highest cashback rate of 5% on its Amex® Cashback Everyday Credit Card and Amex® Cashback Credit Card, although this is an introductory offer that’s only available for the first five and three months respectively.

Alternatively, Santander’s Rewards Credit Card Mastercard offers 3% cashback for 12 months on eligible purchases, while Chase current account customers can receive 2% cashback on the provider’s Credit Card Mastercard (up to £20 per month).

But, although these cards may seem appealing, the card paying the highest rate of cashback won’t necessarily be the best option for everyone.

Introductory cashback rates only last for a limited time, after which the cashback scheme may not seem so attractive. Moreover, it’s important to check the terms of the card, including any caps on the amount of cashback you can earn and any maintenance fees, as these may offset the benefits of the percentage cashback rate.

As a result, different people will find that different cashback credit cards are the best option for them. In addition to the percentage cashback paid, it’s just as important to consider card fees, minimum spend required for cashback and other features to make sure you choose the right card for you.

For example, if you regularly shop at a particular retailer, a cashback credit card that offers a favourable rate on spending at this store could be worth considering instead.

Cashback vs rewards credit cards

Cashback cards are a form of reward credit card. While cashback cards allow you to earn money on your spending, reward cards offer other benefits such as loyalty points and air miles.

See the table below for a summary of the similarities and differences between these cards.

The question of which type of card is best will depend on your individual situation. Even though reward cards may have more restrictions, those who regularly shop at a certain retailer or travel abroad may find these cards can offer more generous rewards than a standard cashback card.

As a result, it’s worth looking at rewards credit cards as well as cashback cards to work out which one offers the best scheme for you.

How to apply for a cashback credit card

You typically need to be a UK resident aged over 18 to apply for a cashback credit card, and providers may set other requirements such as a minimum annual income. If you meet the displayed criteria, you can then check your eligibility to see your chances of approval for a particular card.

To check your eligibility, you’ll need to provide personal information and details about your finances, including your income, rent or mortgage payments and any other existing debts, for example.

Providers will also run a soft credit check to see if you qualify for the card. This won’t affect your credit score.

When you formally apply for a card, the provider will then run a hard credit check (which will appear on your credit file) to decide whether to accept your application. If approved, it will then confirm the credit limit and interest rate of the card.

How can I avoid overspending with a cashback credit card?

The key to cashback credit cards is to only use them for your usual spending. They shouldn’t be used to justify buying something or spending more than you can afford to repay.

A useful tip is to try to think of a cashback credit card as a debit card so you don’t spend any more than the sum you have in your current account. This means you know you will be able to clear your balance at the end of the month.

If you feel yourself overspending, it may be worth closing your cashback card to avoid running into more serious debt trouble later on.

Other types of credit card to consider

If a cashback credit card isn’t quite right for you, there are other credit cards you could consider instead.

• Reward credit cards: If you like the idea of being rewarded for your spending, it’s worth looking at reward credit cards. They work in a similar way to cashback credit cards but offer points, vouchers and other benefits instead of cash.
• 0% purchase cards: Ideal if you want to spread the cost of a big purchase, 0% purchase credit cards allow you to borrow without paying interest for a limited period. It’s important to clear your balance before the end of the interest-free period and follow the terms of the card, otherwise charges may apply.
• Balance transfer cards: These are suitable if you have existing credit card debt that you are paying interest on. You can transfer this debt to a balance transfer card to reduce the amount of interest you pay.
• Travel credit cards: If you’re travelling abroad, specialist travel credit cards allow you to spend without incurring any fees.