Lloyds Bank launches “attractive” credit card with unlimited cashback

The Lloyds Ultra Credit Card has one of the most competitive cashback offers on the market.

Consumers can earn unlimited cashback on their spending after Lloyds Bank launched its Lloyds Ultra Credit Card today (1 October 2025).

It offers 1% cashback on all purchases for the first 12 months after opening an account, which is one of the most competitive cashback schemes available. However, this drops significantly to 0.25% cashback after the introductory period.

“The Lloyds Bank Ultra Credit Card is an attractive choice for shoppers as it does not cap the 1% cashback, so spenders can get a nice payment after a year of use,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, noted.

However, she adds that, after the first year, “it’s wise to consider switching elsewhere if the cashback of 0.25% is not competitive at that time”.

Cashback and other benefits

Unlike some credit cards, there’s no cap on the amount of cashback you can earn with the Lloyds Ultra Credit Card. This means you can get money back on all your spending, whether you’re using your card in the UK or overseas.

Moreover, because this credit card doesn’t charge any foreign exchange fees, you don’t need to worry about the cashback you earn being cancelled out by any overseas charges. However, bear in mind that local charges may apply in some circumstances when spending abroad.

Consumers also won’t need to pay any fees if they want to use the card for cash withdrawals (although interest charges will apply).

Overall, this card “offers good value” and can be “a great choice for customers who want a fuss-free credit card for everyday shopping and trips abroad”, Springall explained.

To get the most from your cashback card, you should aim to clear your balance in full to avoid paying any interest charges.

However, if you can’t afford to pay off your card in full, it’s crucial to make at least the minimum payment.

Finding a competitive cashback card

The unlimited 1% cashback scheme offered by the Lloyds Ultra Credit Card for the first year is one of the more generous cashback offers available.

However, a couple of cards from American Express offer an even higher 5% cashback for a limited number of months (up to £125). After the specified period, these cards also have a competitive tiered cashback scheme which could be particularly attractive to high spenders.

While the above providers offer attractive cashback schemes for a limited period, consumers should review their card once the introductory offer ends to see if they could earn more cashback by switching to another credit card.

For example, the 0.25% cashback that this Lloyds cashback credit card pays after the first 12 months can be matched or beaten by a variety of other credit cards.