Earn Cashback on Spending: Get £100s Back Each Year
If you clear your card in full every month, cashback and reward credit cards can pay you back £100s a year on everyday spending.
In this guide
Cashback credit cards turn routine spending into a small rebate. Used correctly, they can return £100s a year on groceries, petrol, travel and online shopping.
How cashback cards work
You spend as normal on the card, and the provider pays back a percentage of your spending. Some cards pay a flat rate, while others pay more in specific categories such as supermarkets or fuel.
The golden rule is to pay the balance in full every month. If you carry a balance, interest will wipe out the cashback and usually cost you more overall.
Are there alternatives?
If you do not want a credit card, some bank accounts and debit cards offer cashback on certain retailers. Reward schemes such as supermarket loyalty apps, airline points and cashback websites like TopCashback and Quidco also give money back on spending you would do anyway.
Use it for planned spending only
Cashback is a bonus, not a reason to spend more. Put regular purchases like fuel, weekly groceries and Christmas shopping on the card, then set up a direct debit to clear it automatically. If you want to see how the extra cashback changes your disposable income, run your numbers through our Salary After Tax Calculator.
Bottom line
Cashback is only free money if you do not pay interest. Get the right card, spend what you normally spend, and pay it off in full. Find more deal tips in our Shopping & Deals guides.
_External resource: MoneySavingExpert compares the best cashback and reward credit cards available in the UK — see the MSE guide.