Earn as much as 5% back when you spend from the likes of American Express, Chase and Barclaycard.
Pretty much every time I spend money I am earning money. Ok, only a little bit but it all adds up. Don’t roll your eyes. It really does. The way I do this is through a cashback credit or debit card, or more accurately, through a couple of these cards.
Rates aren’t as good as they were a few years ago, and there are fewer cashback cards available, but even if you’re only getting 0.25% I think it’s worth having one or two in your wallet. Fortunately, it’s possible to get as much as 1.25% – and more on top with introductory offers.
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Cashback debit card vs credit card
In most instances the best option is the one that pays the best rate. And if you’re worried about managing a credit card it makes sense to use a debit card more.
However, there are reasons why I think it’s worth having a cashback credit card either as well or instead.
Primarily they’re handy if you are buying something that costs more than £100 and want the added consumer protection that comes with credit cards. They can also be useful abroad when hiring a car or when a hotel needs a holding deposit (though you’ll want to ensure it’s fee-free).
Points vs Cashback
There are two types of credit card which earn you money as you spend. Cashback credit cards pay you back in cold, hard cash. Well, it’s usually credit to your card, but you get to spend that as you want.
Reward cards are slightly different as you get points, which are usually then transferred into vouchers at the linked retailer.
There are more reward and points based credit cards than ones offering actual cash, and in some cases they’re better paying. But there are some useful benefits of choosing a cashback card.
First, you can use the money you make however you wish, without being tied into spending vouchers as specific stores or airlines. Second, there’s no redemption threshold which is something you often see on reward cards (e.g. you need to earn 500 points to get a £5 voucher).
Andy’s cashback credit card rules
Below you’ll be able to read more about the best cashback credit cards. But first, a really important rule if you are using a cashback credit card.
Always pay off the balance in full every month
There’s no point using a cashback credit card if you’re going to get charged interest on your purchase. So make sure you set up a Direct Debit to clear the full balance.
If you can’t afford to do that, then a credit card probably isn’t your best option except for emergencies. I’ve written more about clearing credit card debts, so do read that.
It’s also worth doing an “eligibility check” before you apply if you can. This gives you a sense of whether you’ll be accepted, though not a guarantee.
Read more about these credit card rules here.
Best cashback debit cards
There are a handful of debit cards which offer money back on your spending. I’m not a fan of Zlitch, and I’ve not included cards which offer money back from time to time on a changing list of retailers.
Chase Bank
There’s only really one debit card that offers cashback that I’d go for and it’s Chase Bank. You’ll get 1% back on most of your purchases. Check out our full review here.
What you can earn:
- 1% on most purchases (capped at £15 a month)
Fees, details and how to apply:
Santander Edge
You can also earn money back at supermarkets and some commuting costs (petrol, trains, buses etc) via the Santander Edge debit card. Personally I wouldn’t bother as it you won’t earn on other spending. Check out my full review here.
What you can earn:
- 1% on supermarket and travel costs (capped at £10 a month)
Fees, details and how to apply:
Best Amex cashback credit cards
Most American Express cards will earn you points (more on these here), but there are two cards which will pay actual cash to your account.
American Express (Amex) Platinum Cashback Credit Card
Up to 1.25% back
Great for the highest cashback rates
This card will earn you 0.75% for every £1 you spent, increasing to 1.25% once your annual spend goes over £10,000.
You’ll get paid in cash rather than points for spending on this card, giving you the flexibility to use the money saved through it how you want. It’s credited to your card around your 12-month anniversary.
Though this card comes with a £25 fee, you’re able to get £20 (at the time of writing) extra back through applying for the card via cashback site Quidco.
The welcome bonus is 5% on the first £2,500 spent in the first three months, making it better than the Gold option if you don’t think you’ll spend £3,000 in that time.
What you can earn:
- 5% for the first three months (up to £2,500 spend) – worth up £125
- 0.75% on spend up to £10,000 – worth up to £75
- 1.25% on spend over £10,000 – no cap
- Additional cashback offers you can add to your card throughout the year via your account
- More on this and other American Express credit cards
Fees, details and how to apply:
American Express (Amex) Platinum Cashback Everyday Credit Card
£100 bonus and up to 1% back
Good for lower spenders
Very similar to the Amex Platinum Cashback card except you get lower rates in exchange for no card fee. This could be a better option if you are likely to spend less than £5,000 a year on the card.
What you can earn:
- 5% for the first three months (up to £2,000 spend) – worth up £100
- 0.5% after on spend up to £10,000 – worth up to £50
- 1% on spend over £10,000 – no cap
Fees, details and how to apply:
Read more about other American Express cashback credit cards here.
Visa cashback credit cards
There’s only one card of note issued by Visa, but it’s a good option to add to your wallet thanks to fee-free spending overseas.
Barclaycard Rewards
0.25% back
Great for regular travellers
There are a couple of benefits to this Barclaycard. First, you will earn the cashback and pay no fees on transactions abroad as well as in the UK.
Second it’s a Visa rather than Mastercard. That shouldn’t really matter, but in the past I’ve been to countries where for some reason only Visa worked.
What you can earn:
- 0.25% on every £1 spent
- No fees for using abroad
- No cap on annual cashback you can earn
Fees, details and how to apply:
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Mastercard cashback credit cards
Natwest or RBS Reward credit card
Up to 1% back
If you have a Natwest or RBS Reward current account then this card is fee-free (otherwise best avoided), You’ll earn 1% back at the supermarket and 0.25% back elsewhere.
Personally, I don’t see the point as you can get 1% back at the supermarket with the Chase debit card or Amex Nectar AND other retailers.
What you can earn:
- 1% on supermarket spending
- 0.25% on spending elsewhere
Fees, details and how to apply:
Lloyds or Halifax cashback credit card
Up to 0.5% back
This card, available from either Lloyds or Halifax sounds good with a top rate of 0.5% – beating all the non-Amex cashback cards (though not reward cards). However you need to spend £4,000 a calendar year where you will earn 0.25% before you’ll get the increased return.
If you are using Chase or an Amex for most of your spending it means you’ll probably not spend £4,000 in a year. Full review here.
What you can earn:
- 0.25% on the first £4,000 spent each year
- 0.5% on spending above this
Fees, details and how to apply:
