About cashback credit cards
What is a cashback credit card?
A cashback card is, as the name suggests, a credit card that gives cashback on your spending. They tend to calculate the amount of cashback you have earned during a set period and then deduct that from your bill for that month.
Are there any drawbacks to a cashback card?
Cashback credit cards, as with most rewards cards, often have high interest rates on purchases. They are aimed at customers who pay their bill in full each month and don’t rely on the credit facility, the card providers then reward these good customers with schemes such as cashback. If you don’t think you’ll be able to pay your bill in full each month, then you may want to consider a purchase credit card instead, as any interest charged will wipe out the benefit of the cashback.
It’s also worth taking into account how much you spend each month and where you spend your money, some cards offer higher rates of cashback on certain items whereas other cards offer higher rates of cashback if you spend a certain amount in a year.
Can anyone get a cashback card?
Cashback cards are typically aimed at those with excellent ratings, so if you’ve missed any payments recently on your current card then you may not be accepted. You can use our free Card Matcher tool to check the likelihood of being accepted for a card before you apply.
You can also check your credit rating for free to find out what you can do to make sure you get the credit you want.
Which providers offer this type of card?
Several credit card providers offer cards with cashback, but the most common are Capital One, Nationwide and Santander.