Cash-Back Credit Cards

If you always pay the full balance on your credit card each month, there are certain credit cards which will reward you for this. For example, if you spend £5000 a year, you can earn £50 for simply paying off your account. You can earn free cash for simply doing what you normally do and the savings can add up. It is only beneficial and worth taking out if you:

Pay off the account every month in full without fail. If you don’t the interest being charged on your purchase will cancel out the cash-back being earned and it would be better to find a lower interest credit-card.
Never withdraw cash from a cash-back account, as you charged interest immediately.
Don’t transfer your balance from existing cards, as the rate of interest is usually substantially higher than alternative cards.
The lenders often attach really attractive balance transfer rates to cash-back cards; however your repayments will not follow a positive payment hierarchy.

Highest Paying Cash-Back Cards:

American Express Platinum Cashback Credit Card

Cashback: 5%

Length of cashback offer: 3 months (then 0.5% to 1.5%*)

Maximum Cashback per month: £100 for 5% intoductory offer; no limit on ordinary cashback percentage

Typical APR: 18.9%

* 0.5% up to £3500; 1% between £3501 and £10000; 1.5% over £10,000

Halifax Cachback Credit Card

Cashback: 1% on fuel and supermarket shopping (0.5% on all other purchases)

Maximum Cashback: £150 per year

Typical APR: 15.9%

Note: Cashback must be claimed back in multiples of £15