09 Feb
The Best Cash Back Credit Cards 2023
February 09, 2021
What Are The Best Cash Back Credit Cards
What is a cashback credit card?
A cashback credit card is a type of reward credit card that pays you a percentage of what you spend back in the form of a credit on your bill. Historically there were a large number of cards to select from. However, in 2015 the EU capped interchange fees providers can charge. This cap has drastically reduced offers.
How do cashback credit cards work?
Cashback credit cards work by giving you back a percentage of what you spend. They are a great way to save on your shopping. You can earn £6 cashback when you spend $100. This depends on what % deal the card has.
Examples of The Best Cash Back Credit Cards earnings on a 3% cashback credit card
1 – £5000 spend = $150 cashback
2 – £3000 spend = $90 cashback
3 – £1000 spend = $30 cashback
How to choose which cashback credit card is the right one for you?
This may sound simple, however, you need to understand the details. Some credit card companies have great looking higher cashback incentives to get you hooked.
After the new customer period expires you then revert to a different cashback rate, in some cases much lower! Check the long term deal for a better outcome.
Is there an annual fee on cashback credit cards?
Some companies do charge an annual fee for the privilege to use their cards. Most do not. This is very important to hack before signing up.
Top best top 5 cashback credit cards, compare cashback credit cards
#1 American Express Platinum Cashback Everyday Credit Card
With the American Express Platinum Cashback Everyday Card, you’ll get 5% cashback in the first three months up to a maximum of $100 – in other words, you’ll need to spend $2,000 during that period to get the top amount.
#2 American Express Platinum Cashback Credit Card
The American Express Platinum Cashback Credit Card pays 5% cashback in the first three months up to a slightly higher maximum of $125, while the APR is 27.3%.
#3 Santander All in One Credit Card
The Santander All in One Credit Card offers 0.5% unlimited cash back on spending.
#4 NatWest/RBS Reward Credit Card
NatWest and Royal Bank of Scotland both offer the Reward Credit Card. It pays 1% cashback on all spending at supermarkets (0.25% at their petrol stations and everywhere else).
#5 HSBS Purchase Plus Credit Card
0% interest for 18 months11 anchor1 on balance transfers made within the first 60 days of account opening. A 2.9% fee applies (minimum $5).
Top 5 Cashback credit card golden rules you must follow to stay out of debt!
#1 Always Avoid borrowing
Use cashback cards for cash back on everyday items. This is what they are for. They’re generally not very good for borrowing. Some have a very high interest rate!
#2 Always Pay off the card balance in full every month
#3 Maximise your cashback with everyday spending
To get the most out of your cash back credit card you should try to use it as much as possible. It’s best to use a cashback card as a replacement for your standard credit card.
#4 Add user
Some cards allow you to add a partner or close family member to your account for free. This means that both of you can use the card and you will also earn cashback on the additional cardholder’s spending.
#5 Put large expenses on your card
If you have some home improvements coming up or are looking to book a holiday, You could put the cost on your credit card and earn cash back as a result.
What are cashback rates?
Each cashback card has its own cashback rate, and this may vary for different types of spending, for different periods of time and for how much you spend on your card.
4 ways to maximise your cash back rewards
Here are 4 ways you can maximise your cashback kick-backs
#1 Use your cashback credit card like a debit card
If you are looking to really maximise the amount of cash back you earn, the best way to do so is to spend lots of your card.
What that doesn’t mean is out-of-control spending and racking up lots of debt you can’t afford to repay! Instead, simply use your credit card like a debit card. Use your new cashback card on all your daily shopping spends.
Thinks of it this way, the cashback card is the only card I have and use. You really need to maximise your returns by spending as much as possible.
However, keep an eye on your expenses. Do not go over your budget and get into debt. This is not the right thing to do.
#2 Add user
Some cards allow you to add a partner or close family member to your account for free. This means that both of you can use the card and you will also earn cashback on the additional cardholder’s spending.
Something to note, though, is that adding user makes you responsible for their debt.
This must be managed the right way if the individual has bad debt management it will impact your credit score. Choose individual wisely.
#3 Select cashback that will suit you
As mentioned previously, some cards offer higher cash back rates for spending at specific retailers. Consider your existing shopping habits and therefore whether the cashback offer reflects them.
Don’t just take out the cashback card for the sake of it. If it does not work for you then it’s no good.
#4 the sign-up offer
If you select a card that has a sign-up offer of a higher cashback rate for an introductory period, make the most of it! If you can receive 6% cashback for the first three months, direct as much spend as you can to the card during that period.
Again, that doesn’t mean taking on new debt. Instead, if there are things you need to purchase and would normally use cash or debit, consider swiping your card.
The Best Cash Back Credit Cards: FAQ. What you need to know
Question: Can you get a cashback credit card with bad credit?
Answer: No, You need a good credit score to get a card
Question: Will I get cashback on items I return?
Answer: No, Cashback is only paid on what you spend, so if you buy something and return it your cashback balance will be adjusted to reflect this.
Question: Does cashback count towards my minimum payment?
Answer: No, Cashback does not count towards your minimum monthly credit card repayment so don’t rely on this to help you pay your bill.
Question: How is the cashback paid on a credit card?
Answer: The cashback you earn by using your cashback credit card is usually paid back in the form of a credit on your bill.
Question: Can I view my balance and cashback online?
Answer: Most providers let you log in to online banking which lets you check how much cashback you have earned, your balance and your statement.
Question: How many credit cards should I have?
Answer: Having too many cards can negatively impact your credit score. Select the right ones for you.
Question: Can I get a bonus cashback?
Answer: Yes, some cards offer bonus rates in the first few months if you spend more than a specified amount (e.g. 6% cash back if you spend more than $5,000).
