Card Basic Cashback Annual Fee Representative APR

American Express

Platinum Cashback Everyday Card
5% Basic Cashback £0 Annual Fee 22.9% APR Representative Variable Apply

American Express

Platinum Cashback Credit Card
5% Basic Cashback £25 Annual Fee 28.2% APR Representative Variable Apply

AA

FuelSave Credit Card
4% Basic Cashback £0 Annual Fee 22.4% APR Representative Variable Apply

Santander

123 Credit Card
3% Basic Cashback £36 Annual Fee 18.4% APR Representative Variable Apply

TSB

Advance Credit Card Ex/C
1% Basic Cashback £0 Annual Fee 7.9% APR Representative Variable Apply

Royal Bank of Scotland

Reward Credit Card
1% Basic Cashback £24 Annual Fee 17.4% APR Representative Variable Apply

TSB

Student Credit Card (Cashback) Ex/C
1% Basic Cashback £0 Annual Fee 19.9% APR Representative Variable Apply

NatWest

Reward Credit Card
1% Basic Cashback £24 Annual Fee 23.7% APR Representative Variable Apply

Royal Bank of Scotland

Reward Black Credit Card
1% Basic Cashback £84 Annual Fee 33.6% APR Representative Variable Apply

NatWest

Reward Black Credit Card
1% Basic Cashback £84 Annual Fee 37.1% APR Representative Variable Apply

Nationwide Building Society

Select Credit Card Ex/C
0.5% Basic Cashback £0 Annual Fee 15.9% APR Representative Variable Apply

Nationwide Building Society

Credit Card
0% Basic Cashback £0 Annual Fee 17.9% APR Representative Variable Apply

Barclaycard

Platinum With Balance Transfer (37 Mths)
0% Basic Cashback £0 Annual Fee 18.9% APR Representative Variable Apply

Barclaycard

Platinum With Balance Transfer (32 Mths)
0% Basic Cashback £0 Annual Fee 18.9% APR Representative Variable Apply

Barclaycard

Platinum With Balance Transfer (23 Mths)
0% Basic Cashback £0 Annual Fee 18.9% APR Representative Variable Apply

Santander

Credit Card
0% Basic Cashback £0 Annual Fee 18.9% APR Representative Variable Apply

Barclaycard

Platinum With Balance Transfer (18 Mths)
0% Basic Cashback £0 Annual Fee 24.9% APR Representative Variable Apply

Barclaycard

Initial Credit Card
0% Basic Cashback £0 Annual Fee 34.9% APR Representative Variable Apply

American Express

Platinum Cashback Everyday Card

American Express

Platinum Cashback Credit Card

AA

FuelSave Credit Card

Santander

123 Credit Card

TSB

Advance Credit Card Ex/C

Royal Bank of Scotland

Reward Credit Card

TSB

Student Credit Card (Cashback) Ex/C

NatWest

Reward Credit Card

Royal Bank of Scotland

Reward Black Credit Card

NatWest

Reward Black Credit Card

Nationwide Building Society

Select Credit Card Ex/C

Nationwide Building Society

Credit Card

Barclaycard

Platinum With Balance Transfer (37 Mths)

Barclaycard

Platinum With Balance Transfer (32 Mths)

Barclaycard

Platinum With Balance Transfer (23 Mths)

Santander

Credit Card

Barclaycard

Platinum With Balance Transfer (18 Mths)

Barclaycard

Initial Credit Card

Cashback Credit Cards

Avoid incurring charges

There is a risk of incurring charges if you run over your limit or are unable to cover the balance of your card at the end of the month. Such charges will likely be greater than any saving than you will make by using the card, and therefore it is advisable that you only use a cash back card if you are very confident that you will be able to afford your monthly payments.

Watch out for high interest rates

Some cash back credit cards can have high interest payments which can outweigh the benefit of having a cash reward. For example if you're getting 5% cash back on your purchases but at the same time are paying 20% in interest payments then you're getting a good deal. As long as you avoid allowing your credit to roll over each month though, you'll avoid interest charges altogether.

Always be disciplined

Cash rewards can also make the idea of spending money to earn the cash back attractive, when in reality you would be saving more money if you simply reduced your spending. This is especially true when different cards have different rates and with some cards the more you spend the greater the percentage of cash back per purchase you will be rewarded with. For example if you spend £1000 then your cash back rate might be 1%, but if you spend £2000 your cash back rate increases to £2000. For this reason it's important to stay disciplined when using your cash back credit card and make sure that you spend only what you can afford to.

There may be an annual fee

Some cash back credit cards also have an annual fee associated with them that can cost anywhere from £25 to £100. The annual fee will shave off a certain about of the money you get as a cash back, but depending the cash back rate you're getting, the card might still be saving you significant amount of money each year. For this reason you shouldn't avoid using a card altogether just because they have an annual fee.

A cash back credit card is well suited for you if:

  • You are looking to make big purchases on items such as cars, furniture and holidays. This will enable you to make big savings in the way of high percentage cash backs.
  • You are very confident that you will not have a problem in clearly your monthly accrued credit, and therefore avoid having to pay high interest rates.
  • You are disciplined and will be able to resist any urge to overspend in order to attain cash back rewards.

You should avoid cash back credit cards and look for an alternative if:

  • You are not looking to spend any more money but currently possess some debt that you want cleared. In this case you could looks at using a 0% interest transfer credit card.
  • You are hoping to be able to borrow money for some purchases and want to be able to pay back the debt over an extended period while paying low interest rates. In this case you are better off with a low interest rate credit card.
  • You find it difficult to avoid spending when there are benefits attached to making purchases.

If you feel unsure of whether or not a cash back credit card would be right for you, or you are unsure of which other credit would be best suited for you current situation then contact us for free specialist advice on what the best options are for you. We understand that looking for the best deal can be daunting with the number of different credit cards there are on offer, and that's why we're here to give a helping hand.