Our Pick Of The Best Cashback And Rewards Cards
Cashback and rewards credit cards give something back for your spending – so, providing you clear what you spend on your credit card each month, it can be worth taking advantage.
We conducted some research (August 2024) to identify the best in both camps. We’ve listed the ones we found below. These are all top-rated cards and among the most competitive in the market, so you’ll need a top-rated credit score to be accepted. You could be offered less favourable terms or even turned down – more on this below.
- Featured Partner
- Our pick of the best cashback credit cards
- Our pick of the best rewards cards
- How did we rank the cards?
- What is a cashback and rewards credit card?
- How do rewards and cashback credit cards work?
- What rewards are there?
- How can I use a cashback and rewards credit card?
- Will I qualify for one of these cards?
Our pick of the best cashback credit cards
Our pick of the best rewards cards
How did we rank the cards?
We looked at the top cashback cards and rewards cards separately, considering the following factors:
- Potential cashback and rewards on offer
- At what rate cashback or rewards can be earned
- Annual card fees
- Where rewards earned can be spent
This was all overlaid with editorial judgment.
It’s important to note that while details are correct at the date stated, these cards vary according to the provider (and what its competitors are doing), as well as your own application and circumstances. Find out more in our FAQs, below.
What is a cashback and rewards credit card?
Cashback and rewards credit cards are two types of credit card that give the cardholder something back on their spending, either cash, vouchers or discounts.
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Cashback credit cards
With a cashback card you literally earn cash ‘back’. Typically this is in the form of credit on your card statement, either monthly or annually, but in some cases cashback might be paid directly into your bank account.
Cashback can be earned at either a flat rate (such as 0.5% on all card spending) regardless of how much you spend, or at a tiered rate which varies according to the amount you spend. For example, you might be paid 0.5% if you spend less than £5,000 each year, then 1% on amounts over £5,000.
In either case, the amount of cashback you earn is usually capped each year.
Some cashback credit cards pay a higher amount of cashback at certain retailers or on certain products such as groceries or fuel. A handful offer higher or bonus introductory rates (with a cashback cap), followed by an ongoing rate.
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Rewards credit cards
Reward credit cards offer cardholders ‘reward points’ for eligible spending on the card. How points are earned and how much they are worth varies from card to card. Some reward cards offer bonus points in the first few months.
Once the cardholder’s points balance reaches a certain level , the points can normally be exchanged for vouchers or discounts.
Some reward cards give you more points on certain types of spending (for example, groceries or petrol) or when you use it at the retailer issuing the card (M&S, Tesco or John Lewis, for example).
Some reward cards also allow you to earn loyalty points when you shop at selected retailers or supermarkets. These points can then be turned into vouchers or other rewards to spend there.
How do rewards and cashback credit cards work?
These cards give the cardholder a kickback – cash or rewards – on their everyday spending on the card. Points and rewards can be converted into vouchers to get money off future purchases with various retailers. It can be a great way to earn extra money back just for doing your everyday shopping and spending.
Cardholders will benefit most from rewards and cashback cards if they can clear their card balance in full every month. That’s because the interest rates on these types of cards tend to be relatively high. Typical purchase rates can be anything from 25% to 30%, for example. If you’re worried about forgetting to pay off the card you can set up a monthly direct debit to clear the card balance each month.
If you’re not sure you’ll be able to clear your balance in full each month this type of card may not suit you. Any cashback or rewards you earn from the spending could soon be wiped out by high monthly interest charges on the balance.
What rewards are there?
Different rewards cards offer different perks, so it’s important to select a card that suits how and where you shop. American Express rewards cards enable you to earn membership rewards, for example, which can be redeemed against a range of purchases with major retailers, or used with participating airline loyalty schemes.
There are a wide range of cards on offer from supermarkets and major retailers, which can appeal to shoppers who are loyal to particular brands. It can be a great way to build up rewards points and discounts just from your everyday shopping.
How can I use a cashback and rewards credit card?
These cards work best when you understand exactly the terms and conditions of the cashback or rewards, such as if there is a minimum spend or a target spend to get certain cashback or bonuses. They can also be a winner if they offer cashback or points for spending you would be doing anyway on a daily or weekly basis.
Don’t be tempted to spend more on the card (just to rack up points) than you can afford to pay off in full each month. This way you can take maximum benefit from the perks and avoid paying interest on the borrowing.
Take full advantage of any introductory offers or bonuses when you take out the card. But don’t be swayed to take a card just for an introductory offer. The ongoing deal for cashback or rewards should be more important.
Some rewards points can expire, so make sure you use them within the allocated time for redeeming the reward.
Will I qualify for one of these cards?
Depending on your credit score, income and personal circumstances, you could be shown a higher Annual Percentage Rate (APR) than the ones you see listed. These are only representative (which means offered to 51% of successful applicants).
In some cases, you could be turned down for a card altogether.
However, your application will be processed through a provider’s eligibility checker. This means you can find out if you might qualify for a card, and on what terms, without leaving a footprint on your credit report.
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