Top Cashback Credit Cards

Fancy earning cashback on everything you buy? Get paid for doing your daily shopping with a cashback credit card.

Over the years, and after much self-examination, I have realised two things about myself.

1.)    I shop too much.

2.)    I shop too much.

So, when I was given the chance to earn cashback as part of my everyday spending, naturally I leapt at the chance.

How? Well, for the past couple of months, I have put almost all my spending on my American Express Platinum credit card. The card currently gives me 5% cashback on every purchase I make. That's everything from make-up to movies, and more.

In total, splashing the cash on my credit card has earned me £100 so far. Not bad.

Cash In

Cashback credit cards are simple to use. They work like any other credit card, only for every pound you spend, you get a percentage back as cashback, ranging from 0.5% up to around 5%. On the anniversary of account opening, the cashback is calculated and paid back to you, usually as a credit to your account.

Here's a selection of some of the best cashback credit cards outs there at the moment:

So what's the best way to accrue cashback?

Depending on the credit card you choose, there are different ways to maximise your cashback. In my case, because American Express only offers its generous 5% cashback for the first three months, I planned some of my purchases carefully before I applied.

Since then, I've paid for my summer holiday flight tickets, hotel booking, travelcard, and every other conceivable other thing you can think of with my credit card. I've even used it to buy toilet roll. You'd be surprised how quickly your cashback can build up simply by loading as many purchases as possible on your card.

If you really want to maximise your earnings and have a trusted partner, you could always request an additional card on your account to build that cash up even more quickly.

It is important to remember that although the American Express credit card does offer one of the most generous cashback deals at the moment, it doesn't last forever. After the initial 3 months, you'll earn 0.5% on spend up to £3,500, 1% for spending from £3,501 - £10,000, and 1.5% subsequently.

If you prefer having a generous flat rate of cashback, with no bonus rate, then Capital One's Platinum Cashback Mastercard offers 1% cashback on all shopping, all year round, with 0% on balance transfers until November 2008.

Be careful though, if you move your balance transfer debt to this card, you'll be caught by the banks' negative payment hierarchy trap. You'd be better off moving your credit card debt to another piece of plastic, not your cashback card.

Supermarket Sweep

Keen supermarket goers may want to consider an Abbey Credit Card, which offers a generous 5% cashback on up to £1000 worth of supermarket spending until the end of July.

However, after July, you will no longer be eligible for the cashback, so you shouldn't see this as a long term cashback card.

Alternatively, Barclaycard's Platinum Cashback Credit Card offers 1% cashback on supermarket and petrol purchases all year round, and 0.5% on all other spend. Existing customers can also apply.

Less Haste, More Cash

One thing I cannot stress enough is that you should only consider a cashback credit card if you pay off your credit card balance in full each month. If you don't, then the interest accrued from your purchases will quickly cancel out any cashback gains.

Still, if you're great at managing your money, cashback credit cards provide a great incentive to spend on them. And don't forget that purchases you make over £100 are covered under Section 75 of the Consumer Credit Act 1974, something you just don't get by paying by debit card.

Find A Cashback Credit Card In Our Credit Card Centre / Watch Out For These Terrible 0% Traps!