Best Cashback Credit Cards in the UK: Maximise Rewards on Everyday Spending
- Jamie Reid - Credit, Loans & Everyday Money Writer
- Mar 3
- 5 min read
Updated: Mar 28
Cashback credit cards are a smart way to earn money back on your everyday purchases — turning your normal spending into effortless rewards. If you regularly pay off your balance in full each month, these cards can be one of the simplest ways to make your money work harder.
But not all cashback cards are created equal. Some offer higher rates on specific spending categories, while others provide flat-rate rewards with no cap. In this guide, we'll walk you through the best cashback credit cards currently available in the UK, explain how they work, and show you how to maximise your return.
What Is a Cashback Credit Card?
A cashback credit card gives you a percentage of your spending back in the form of cash rewards. This cashback is usually credited monthly or annually to your statement balance or bank account.
Key Features:
Cashback rates: Typically range from 0.25% to 5%
Minimum spending requirements: Some cards require you to spend a certain amount to unlock the top rate
Introductory offers: Limited-time boosts for new customers
Annual fees: Some high-reward cards charge a fee, but many don’t
You must pay your balance in full each month to avoid interest charges, or the cashback benefit is quickly cancelled out by fees.
Best Flat-Rate Cashback Credit Cards
Flat-rate cards are ideal for those who want simplicity — earning the same percentage on all purchases, regardless of category.
Top Picks:
American Express Platinum Cashback Everyday Card
Rate: 0.5% to 1% depending on annual spend
Fee: £0
Intro offer: Cashback boost on spending in first 3 months
Best for: People who spend regularly and want a no-fee option
Barclaycard Rewards Card
Rate: 0.25% cashback on all purchases
Fee: £0
Extra benefit: No foreign transaction fees
Best for: Travel and everyday UK spending
Unique Insight:
Many people overlook cashback rates under 1%, but even 0.25% adds up. Spend £1,200/month and you'll earn £36 a year — just for using your card wisely.
Best Category-Based Cashback Cards
Some cards offer boosted cashback in specific categories, such as supermarkets, fuel stations or online shopping.
Examples:
Santander All in One Credit Card
Rate: 0.5% cashback on all purchases
Fee: £3/month
Extras: No foreign transaction fees
Best for: Consistent spending across many categories
American Express Nectar Credit Card
Rate: 2 points per £1 spent (approx. 1% cashback when redeemed at Sainsbury’s, Argos, etc.)
Fee: £0 for the first year, then £30
Intro offer: Bonus Nectar points on first £2,000 spent
Best for: Nectar collectors and Sainsbury’s regulars
[Link: Supermarket Credit Cards That Earn the Most Cashback]
Pros and Cons of Cashback Credit Cards
Advantages:
Earn money back on your regular spending
Many have no annual fee
Introductory offers can boost your return significantly
Helps track spending digitally for budgeting
Disadvantages:
Cashback is only worthwhile if you repay in full each month
High interest rates if you carry a balance
American Express isn’t accepted everywhere
Some cards have tiered cashback or caps on earnings
How to Choose the Right Cashback Card
Ask yourself:
Do I pay my balance off in full each month?
If not, a 0% interest or balance transfer card may be more suitable.
Where do I do most of my spending?
Choose a card that offers higher cashback at those retailers or in those categories.
How much do I typically spend each month?
If it’s a small amount, focus on no-fee cards. High spenders may benefit more from premium cards with fees and better cashback rates.
Do I travel frequently?
Some cards waive foreign transaction fees and offer cashback abroad, too.
How to Maximise Cashback Earnings
Always pay in full — Avoid interest that would wipe out any gains.
Use it for everyday spending — Food, petrol, travel, subscriptions.
Automate repayments — Set up a direct debit for the full amount each month.
Check acceptance — Have a backup Visa or Mastercard if your cashback card is Amex.
Combine with loyalty schemes — Many cards also earn points with retailers like Tesco Clubcard, Nectar, or Avios.
Overlooked Tip:
Use your cashback credit card to pay for fixed monthly bills like Netflix, gym memberships, and broadband — expenses you’d pay anyway. Over the course of a year, this can add up to a tidy sum.
Who Should Avoid Cashback Cards?
Cashback cards are not right for everyone. Avoid if:
You carry a balance from month to month (interest charges will exceed the rewards)
You're trying to reduce debt — focus on balance transfer or low APR cards instead
You have poor or limited credit history — you may not be accepted for premium cashback cards
For budgeting help or improving your credit score, visit MoneyHelper's Budget Planner.
[Link: Best Credit Cards for People With Poor Credit]
Alternatives to Cashback Credit Cards
If cashback isn’t the right fit, consider:
Rewards Credit Cards – Earn loyalty points or miles (e.g. Tesco Clubcard, Nectar, Avios)
0% Purchase Cards – Spread the cost of large purchases over time without interest
Balance Transfer Cards – Shift existing debt to a 0% interest card to save money
[Link: Credit Card Rewards vs Cashback — Which Pays More?]
FAQs: Cashback Credit Cards in the UK
Do I pay tax on cashback earned?
No. Cashback is treated as a discount or rebate, not income — so it’s not taxable in the UK.
How is cashback paid out?
It depends on the provider. Most issue the cashback as a credit to your statement, while others may transfer it to your linked bank account or allow redemptions as vouchers.
Can I get more than one cashback card?
Yes, though it’s best to avoid applying for multiple cards in a short time. You can use one for supermarket spending and another for general purchases to maximise returns.
Do cashback credit cards affect my credit score?
Yes — like all credit cards, they affect your credit file. Used responsibly, they can help build a positive credit history.
What credit score do I need to get a cashback card?
There’s no fixed score, but the best cashback cards generally require good to excellent credit. Use eligibility checkers from major banks or comparison sites to check before applying.
Final Thoughts
Cashback credit cards can be a valuable tool for disciplined spenders who pay their balance off every month. Whether you're earning a flat rate or boosted cashback in specific categories, it's essentially free money — as long as you avoid interest and fees. The key is to pick the right card for your lifestyle, spending habits, and financial goals.
Before applying, use an eligibility checker to avoid damaging your credit score. And remember: cashback only works to your advantage if you treat your card like a debit card — never spend more than you can afford to repay.
Review your options every year and consider switching if a better deal becomes available. Used wisely, cashback cards can be a simple and effective way to save money on your everyday expenses.
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Please note: All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.
