Cash back credit cards give you back a percentage of what you spend on your credit card. This amount is usually deducted from your bill once a year.
For example, if your card gave you 3% cashback, you would get back £90 if you spent £3,000 on the card. Some cards let you convert your cashback into vouchers instead, and some will boost their value if you do this.Find out more about how to use cashback credit card
How to choose the best cashback credit card that's right for youWhen looking for the best cashback card, you want to find one that will pay you the most money back on what you will spend on it.
Our comparison table above shows cashback credit cards available on our site.
You can select how much you are likely to spend on the card each month or on a one off purchase. We will then show you how much cashback you could earn on each card.
Look for bonus cashback
Some cards offer a higher cashback rate for the first few months, which could boost the amount you earn if you plan to make a large purchase soon after you get the card.
Is there an annual fee for cashback credit cards?
Some cards come with an annual fee but many do not charge one. However, some of the cards with the highest cashback rates charge an annual fee.
Our table shows the annual fee charged by each card. Deduct the fee amount from the amount of cashback a card would give you. Never choose a card with a fee that is higher than the cashback you would earn.
Should you get Visa, MasterCard or American Express?
It is best to choose the card that will pay you the most cashback rather than only looking for Visa, MasterCard or Amex.
All three process the transactions when you use your credit card, but they do not usually provide the cards (however American Express do offer their own cards too).Here is a guide to the differences between MasterCard, American Express and Visa
Are cash back credit cards worth it?If you pay off your full statement balance every month and spend enough, cashback cards can give you a free cash reward that you can spend on whatever you like.
However, if you are unable to pay off what you spend every month you will be charged interest, which is likely to come to much more than the cashback you have earned.
If you want to use the card to spread the cost of a large purchase over several months or pay off an existing credit card balance, you could get:
A 0% purchases credit card, which gives you an interest free period to pay off what you spend
A 0% balance transfer credit cardlets you pay off the balance on another card interest free
Can you get a cashback credit card with bad credit?
Cashback credit card are generally best for those who have a good credit history. So if your credit score is less than ideal, it might be a good idea to take some time to improve your credit before you apply.
However, you do have the option of a credit building credit, some of which do offer cash back. Just keep in mind that you me be offered a lower credit limit and you'll pay a higher APR than you would if you had a standard cashback credit card.