The Best UK Credit Cards for Cashback
Cashback credit cards can be an excellent way to earn money on your everyday spending. In the UK market, several cards offer competitive cashback rates, but choosing the right one depends on your spending habits and financial goals. This comprehensive guide reviews the best cashback credit cards available to UK consumers.
How Cashback Credit Cards Work
Cashback credit cards reward you with a percentage of your spending back as cash. This typically ranges from 0.5% to 5% depending on the card and spending category. The cashback is usually credited to your account annually or can be redeemed as statement credits.
Top UK Cashback Credit Cards
American Express Platinum Cashback Credit Card
Cashback Rate: Up to 1.25% on all purchases
- 0.75% cashback for the first 3 months
- 1.25% cashback thereafter
- No annual fee
- Minimum £5,000 annual spend required for higher rate
Santander 123 Credit Card
Cashback Rate: 1-3% on specific categories
- 1% on supermarkets
- 2% on department stores
- 3% on petrol, trains, and buses
- £3 monthly fee
Tandem Cashback Credit Card
Cashback Rate: 0.5% on all purchases
- No annual fee
- No foreign transaction fees
- Cashback paid monthly
- Good for international travelers
Barclaycard Cashback Credit Card
Cashback Rate: 0.25% on all purchases
- No annual fee
- Simple cashback structure
- Good for beginners
- Lower rate but widely accepted
Factors to Consider When Choosing
Your Spending Patterns
Analyze where you spend the most money:
- If you spend heavily on groceries, look for supermarket bonuses
- Frequent travelers should consider cards with no foreign fees
- High spenders might benefit from tiered cashback rates
Annual Fees vs. Cashback Rates
Calculate whether the annual fee is worth the higher cashback rate:
- Cards with fees often offer higher rates
- Break-even point varies by spending level
- Consider your annual spending to determine value
Interest Rates and Terms
Important considerations include:
- APR for purchases and balance transfers
- Minimum payment requirements
- Credit limit offered
- Penalty fees and charges
Maximizing Your Cashback Earnings
Use Your Card for All Eligible Purchases
Put all your regular spending on the cashback card:
- Groceries and household items
- Fuel and transportation
- Utility bills (where accepted)
- Online shopping
Pay Off Your Balance in Full
Always pay your full balance to avoid interest charges that would negate cashback benefits.
Take Advantage of Bonus Categories
Some cards offer rotating bonus categories or seasonal promotions that can boost your earnings.
Common Pitfalls to Avoid
Overspending for Cashback
Don’t increase your spending just to earn more cashback. The rewards should be a bonus on necessary purchases.
Carrying a Balance
Interest charges will quickly outweigh any cashback benefits. Always pay in full and on time.
Ignoring Terms and Conditions
Understand minimum spending requirements, cashback caps, and redemption rules.
Application Tips
To improve your chances of approval:
- Check your credit score before applying
- Ensure you meet income requirements
- Don’t apply for multiple cards simultaneously
- Have all required documentation ready
Alternatives to Consider
If cashback cards don’t suit your needs, consider:
- Rewards credit cards with points or miles
- 0% purchase or balance transfer cards
- Premium cards with additional benefits