Top Picks for Credit Cards Offering Cashback Rewards

In the ever-evolving world of finance, cashback credit cards have become a popular choice for many consumers. These cards offer a percentage of cashback for every £100 spent, providing a way to earn money back on your purchases. Here's a rundown of some of the best cashback credit cards currently available in the UK.

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One of the standout options is the American Express Platinum Cashback Everyday Credit Card. New cardholders can enjoy 5% cashback on purchases of up to £125 for the first five months of card membership. After this period, the card offers a competitive 0.75% cashback on up to £10,000. It's important to note that there is no annual fee for this card.

Another offering from American Express is the Platinum Cashback Credit Card. This card boasts a higher representative APR of 36.7% if not paid in full, compared to the Everyday Credit Card, and a yearly fee of £25. However, it offers 5% cashback on purchases in the first three months (up to £125 cashback), an extra £25 bonus cashback, and 1.25% cashback on anything over £10,000.

The Santander Edge credit card is another strong contender. It offers 2% cashback on all purchases (up to £15 a month) in the first year, and 1% cashback on all purchases (up to £15 a month) after the first year. The card comes with a £3 monthly fee and no foreign exchange fees when spending overseas.

For those who prefer Mastercard, the Lloyds Bank World Elite Mastercard® is worth considering. This card offers 1% cashback on purchases above £15,000 and 0.5% cashback on all purchases up to £15,000, with a £15 monthly fee for card holding. It includes perks such as airport lounge access and Mastercard experiences.

However, it's essential to remember that cashback credit cards often have introductory cashback offers for a limited period, require a minimum spend to generate cashback savings, and may charge fees for purchases. Additionally, they may have high foreign transaction fees, making them less suitable for travel outside the Euro zone.

The market for cashback credit cards has struggled to recover since new rules were introduced in 2015 restricting the amount card issuers could charge merchants. Despite this, there are still numerous options available for those looking to earn cashback on their purchases.

Other ways to earn cashback include signing up to cashback sites and getting up to £2,000 cashback when you transfer your pension or ISA. For those seeking more specific rewards, cards such as the Blue Cash Preferred® Card from American Express for groceries, gas, and streaming rewards; the U.S. Bank Cash+® Visa Signature® Card for customizable 5% cashback categories; and the Citi Strata Premier® Card for travel and everyday spending bonuses, are worth exploring.

Lastly, it's crucial to always check the terms and conditions to ensure the card is suitable for your needs. Paying off the full amount every month is essential to avoid being charged interest on cashback credit cards.

In conclusion, cashback credit cards can be a valuable tool for managing your finances and earning money back on your purchases. By understanding the terms and conditions and choosing the right card for your spending habits, you can maximise your cashback earnings and take a step towards financial freedom.