Last Updated on 15 March 2023 by Dan
Hello everyone! This article continues our series looking at the best credit cards available in the UK by looking at the option of the Cashback Credit Card.
A cashback credit card is the option I actually carry myself – for now. Unfortunately in August 2021 American Express have slashed some of the rates of cashback you get on these cards at lower spending amounts, which impacts the overall benefits the card gives.
Previously I was recommending use of one of the American Express Cashback Cards as the best option for most people, but now I think the balance of power has shifted more towards the reward credit cards.
The cashback credit cards have the same notes of caution as the rewards credit cards:
A cashback credit is not for you if you cannot pay these off in full each month, as they tend to attract higher interest payments than other cards.
You also generally need to have a good credit history for these cards as restrictions are tighter – you should always complete a free eligibility check on the issuers website before applying so as not to dent your credit history if you get rejected.
You can find out the factors that influence credit score at this article, and how to improve your credit score within this one.
If you don’t meet either of these two buckets, I recommend having a look at our article on what type of credit cards you should go for and match your profile.
How UK Cashback Credit Cards work
A cashback credit card is quite simple really – every time you spend a £ on your credit card, the card issuer gives a small percentage of your spend back to you. Fundamentally, they’re taking some of the fees and charges that would be passed on to the merchant and giving it to you instead.
As a result a cashback credit card is a great way of getting a little something back on spending you’re carrying anyhow. If you simply care about minimising your costs, these cards are great options – if you’re after something more tangible for your spending you might want to look at our recent article on the best UK rewards credit cards.
One distinction that needs to be made on the cashback credit cards is that your cashback is not paid as you go, but rather appears at the end of each membership year. Therefore you may need to go beyond a year to claim it, which might be a concern on the Platinum card below which charges a fee.
(In practice American Express only charge for cards on a pro-rata basis so holding it an extra month will cost you a couple of pounds, but won’t rack up any significant fees.)
Best UK Cashback Credit Card Sign Up Bonuses
Many of the cards below are American Express, and offer a very significant welcome bonus on signing up. Generally speaking these involve hitting a spending target in the first three months of card ownership, and vary depending on the card you pick.
There are some restrictions, in that you cannot have had an American Express issued card (it’s fine if you’ve had an Amex card from other provider) in the past two years. You can still get the card, just not the signup bonus.
How to get the Best UK American Express signup bonus
The best way to sign up for an American Express card is through their refer a friend/family member scheme, because you’ll get an even larger signup bonus than if you did it direct – plus your friend or family member will get something as well! Please note that the 2 year restriction on receiving a signup bonuses does still apply.
If you have a family or friend with an American Express card that can do this then you should ask them if you can do it via them.
Key: When you click this you’ll see you’ve been recommended for the British Airways Premium Card which is what I use – but if you just click “view other cards” you can select the one you’re after and will get the extra referral bonus.
What is the best Cashback Credit Card in the UK?
So right now for most the best cashback credit card……actually isn’t a credit card – it’s a debit Card.
Chase Bank (the retail arm of US Investment Bank JP Morgan) has launched a current account, which comes with a debit card offering 1% cashback for a year as part of their attempts to break into the UK market.
That’s pretty generous until the cashback offer runs out. If you haven’t had an American Express in the last 2 years those may still be a preferable option because of the signup offer – otherwise the free nature of the Chase account coupled with the generous cashback makes it a strong option for most.
In respect of the credit cards, with only two best in class options on offer it’s pretty clear cut – the American Express Platinum Cashback Card is likely to offer the best rewards rate for those spending over £10,000.
For those spending under £10,000 the lack of an annual fee means the American Express Platinum Cashback Everyday Card is likely to be more rewarding, as you’d be spending more in the fee on the Platinum card than you’d receive in benefit.
More details on both cards are below.
Our pick of the best UK Cashback Credit Cards:
All information is correct as of last update on 15.03.2023. We’ll do our best to keep our information up to date, but details can change all the time so you should double check this yourself.
The Financial Wilderness may also receive a small payout if you make a purchase through a link on this site. It won’t affect the service you receive and we recommend only what we honestly believe to be the best available, not what gives us commission. You can read more about our affiliate policy on our disclaimers page.
Best UK Cashback Credit Card for those spending over £10,000 per year:
American Express Platinum Cashback Card
Representative APR: 34.3% APR Variable
Annual Fee: £25 per year
Signup Bonus: 5% cashback on every £ spent on the card for the first three months, up until the point of racking up £125 of cashback (I.E spending £2,500)
Earnings Rate: 0.75% cashback on all spending up until £10,000, and 1.25% cashback on spend over £10,000.
Review of the American Express Platinum Cashback Card
American Express recently changed the cashback value of their UK Cashback Reward Credit Cards, slashing the under £10,000 rate from 1% to 0.75%. Whilst this doesn’t sound like much it does hurt the card a little – moving it from a clear best option to instead being very similar to the American Express Gold Card we feature in the rewards credit cards article.
Cashback isn’t as fun as getting a reward, but during that initial 6 month period the 5% cashback return gives you a very healthy initial bonus – fundamentally you’re being paid £125 for an amount of spending most families are likely to hit in a six month period.
I’ve listed this card as being best for those earning above £10,000 as that’s where the benefits from the extra bits of cashback exceed the £25 you pay as the card fee.
If you’re going to fall beneath this, the American Express Platinum Cashback Everyday Card below is a better option if you’re dead set on wanting a cashback credit card.
Best UK Cashback Credit Card for those spending under £10,000 per year:
American Express Platinum Cashback Everyday Card
Representative APR: 28.8% APR Variable
Annual Fee: None
Signup Bonus: 5% cashback on every £ spent on the card for the first three months, up until the point of racking up £100 of cashback (I.E spending £2,000)
Earnings Rate: 0.5% cashback on all spending up until £10,000, and 1% cashback on spend over £10,000.
Review of the American Express Platinum Cashback Everyday Card
The American Express Platinum Cashback Everyday Card is to all intents and purposes exactly the same card as the one above – it has slightly reduced earnings rates but still very rewarding.
The signup bonus remains extremely generous considering this is a free card, and is effectively a free £100.
Where the American Express Platinum Cashback Everyday Card is a little more challenging is the ongoing rewards – the rate of return after American Express’s recent changes to raise where you earn the higher rate of cashback is now slightly less than some of the UK Rewards Credit cards.
Best Cashback Rewards Debit Card
Chase Bank UK Debit Card (with Cashback bonus)
Representative APR: N/A – Debit Card
Annual Fee: None
Signup Bonus: N/A
Earnings Rate: 1% cashback on near-all debit card spend (a couple of exclusions apply), up to £15 a month.
Review of the Chase Bank UK Debit Card
Chase’s entry into the UK market comes with a really appealing cashback offer that compares extremely positively to the American Express Cards above and in practice, will be the best option for many people.
The Chase Bank UK Debit Card also holds the extra advantage of being a Visa rather than an American Express, meaning it can be used at more places – maximising your cashback reward.
There’s only one disadvantage, and that is that the generous 1% cashback has now been capped at £15 a month – in practice however this is only likely to affect you where making a particularly large monthly spend.
Be aware this is a debit card not a credit card – that means you’ll need to signup for a Chase UK current account and fund the account for any spending on the card.
You can sign up for a Chase UK Account through the Chase App – details on Chase UK’s website here.
Other UK Cashback Credit Card Options:
It’s basically American Express or nothing in this space at the moment. There’s a Barclaycard Rewards and Lloyds Bank one as well, but it offers a pretty paltry 0.25% cashback so I haven’t recommended it here. (It does have the advantage of being a Visa though, so if you’re in an area that doesn’t generally take American Express…)
Other articles in the Credit Card series:
- What type of credit card is best for you?
- The best reward credit cards in the UK
- The best 0% interest credit cards in the UK
- The best credit cards for low scorers in the UK
Any questions?
There’s lots to consider with credit cards, and there’s often no true best option as it simply depends how you’ll use the card.
If you have any further questions on these best Cashback Credit Cards or any others, please just leave a comment below!
And that’s it!
Thank you for reading! You can sign up to get our new articles delivered to you on a range of financial topics, or remember you can follow our Facebook and Twitter pages. Thank you!
