1-minute guide to Cashback Credit Cards


Cashback Credit Cards

Finding a cashback credit card online will allow you to earn money as you spend

The more you buy with your cashback card, the more you get back

Cashback cards can be brilliant but ONLY when used correctly

Super savvy shoppers buy things using a cashback site, a voucher AND then pay for them with a cashback credit card earning a TREBLE bonus!

A good cashback card:

  • Has a 1% cashback rate AFTER its introductory bonus offer
  • Has a low annual fee, if any
  • Has no cap on the amount you can earn from cashback
  • Has an APR of less than 20%

Need to know

  • NEVER ever withdraw cash using a cashback credit card
  • Cashback credit cards make their money the minute we pay interest. ALWAYS pay these credit cards off IN FULL every month. Set up a direct debit and stay disciplined
  • Cashback cards are not for people with debt.  Interest rates are high and you should always clear existing debt first. DO NOT use as a balance transfer card
  • Many cashback credit cards charge an annual fee ranging from about £20 all the way up to £100!  If you do a lot of spending on a credit card and are likely to make more than the cost of the fee, then it is still worth it
  • Cashback credit cards sometimes cap the level of cashback you can take.  You should particularly watch this with cards that have a bonus rate as you want to make EVERY purchase count
  • Some cards offer different cashback rates for different types of spending. For example, you might earn 1% cashback if you use your card in a supermarket and 3% for spending at a petrol station. Pick one that suits your spending pattern
  • Cashback is often paid back to you annually and usually knocked off the balance of the credit card rather than in cash

Cashback Credit Cards

A cashback credit card allows you to earn money as you spend

Watch out! Four rules for all credit cards

  • Don’t use your credit card to withdraw cash unless you have to. Your credit card is VERY likely to have a high interest rate on any cash that you take out which you will start getting charged from the moment you withdraw it. There is also likely to be a withdrawal fee (we’ve only found a couple with no fees at all). These rates won’t be affected by another deal you might have
  • Look out for annual fees. The fees tend to be charged so you can access higher rates of cashback, airmiles or similar. If you’re not getting a superb deal that makes up for the fee then the cards are not worth applying for
  • Be careful! A lot of 0% or low interest credit cards will automatically set your direct debit amount very low each month so that at the end of the interest free period you end up with a large outstanding balance
  • If you don’t make the minimum monthly repayment then you may lose your deal

The inside track

  • Most cashback credit cards online require you to have an excellent credit rating
  • Cashback can be used with vouchers or discounts so hunt for those first as they are usually much better than the cashback amount
  • The terms and conditions for cashback cards can be quite complicated, especially if the card has an introductory bonus rate, then different levels of cashback for certain purchases.  Many give you another bonus annually so make sure you keep your eyes peeled for mailshots or emails letting you know
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Sarah Willingham
Sarah Willingham is a serial entrepreneur, business investor and leading consumer expert. She has received a number of accolades for her contribution to business including The Sunday Times 500 Most Influential People in Britain 2016, The Times 35 Most Successful Women Under 35, Business Weekly’s Young Entrepreneur of the Year, Courvoisier Top 500 and an entry into the Who’s Who of British Business Leaders. She holds three business degrees including an MBA from Cranfield School of Management, where she is also an advisory board member.