The best credit cards for cashback – December 2022

If you’re looking for a credit card that gives you cash back on your spending, here are the best deals around at the moment.

Cashback credit cards reward you on your everyday purchases, paying you back a percentage of what you spend. 

When new rules were introduced in 2015 restricting the amount card issuers could charge merchants, the number of cashback credit cards on the market dropped and the market has struggled to recover.

But, there are still some good deals out there worth knowing about to help you make the most of your spending.

As with any credit card, be careful to pay it off in full to avoid being charged interest, and always check the terms and conditions to make sure the card is the right one for you. 

What are the best cashback credit cards?

American Express Platinum Cashback Everyday Credit Card 

  • 5% cashback (up to £100)  on purchases in the first three months
  • 0.5% cashback on up to £10,000 after the first three months
  • 1% cashback on anything over £10,000
  • Cash back paid annually

This credit card, available to new cardholders, gives you a 5% cashback on purchases of up to  £100 for the first three months of card membership. 

You receive 0.5% cashback on spending up to £10,000 each year, and 1% cashback on spending above £10,000. 

The card has no annual fee but you have to spend at least £3,000 or you won’t get any cashback. If you fail to pay in full, there’s a representative APR of 27.2%. 

American Express Platinum Cashback Credit Card

  • 5% cashback on purchases in the first three months (up to £125 cashback)
  • 0.75% cashback on up to £10,000 after the first three months
  • 1.25% cashback on anything over £10,000
  • Cash back paid annually
  • £25 a year fee

This credit card from American Express is slightly more generous than the Everyday Credit Card, but it costs £25 a year. At 32.6% the representative APR is higher if you fail to pay in full, too. 

Santander All In One Credit Card

  • 0.5% cashback on all purchases 
  • 0% interest on purchases for 15 months
  • 0% interest on balance transfers for 15 months, with no balance transfer fee 
  • £3 monthly fee

This credit card gives 0.5% cashback on all purchases. It also has no foreign exchange fees on purchases overseas. However it does incur a monthly fee of £3, or £36 a year, and has a representative APR of 27.7%. 

Santander is launching a new rewards service to replace its Retailers Offers, which previously offered 15% cashback on select retailers, so further rewards can be expected. 

Barclaycard Rewards Credit Card

  • 0.25% cashback 
  • No overseas fees
  • Representative APR of 25.9% 

This credit card gives 0.25% cashback on all of your spending. It has no annual fees and has an APR of 25.9%. It is also one of the best credit cards to use when travelling abroad.

You can also register for the Barclaycard Cashback Rewards scheme (indeed, any Barclaycard Visa holder can) and earn an additional 15% cashback when you spend at selected retailers.

How do cashback credit cards work?

If you have a credit card that gives you cashback at say a rate of 0.5%, for every £100 you spend, you get 50p back. 

As attractive as the promise of free money sounds, there are downsides too. 

A lot of credit card companies offer attractive cashback rates for only a fixed period of time, such as the first three months. 

And in order to get the most out of using cashback credit cards you need to be mindful of two things: you must use them for all your spending (but watch out for credit card fees with any purchases) and you must pay off the full amount every month. 

The introductory cashback offers could be useful if you know you're going to be buying something expensive – getting a 5% discount isn't to be sneered at. But if you carry a balance over just once, the resulting interest charge could wipe out any cashback savings you make. 

It is also worth noting that cashback credit card providers often charge a fee and typically offer uncompetitive interest rates. Some also require a minimum spend before you can generate cashback savings. 

If you have existing credit card debt then you might want to consider a 0% balance-transfer credit card instead. 

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