Best rewards credit cards & cashback credit cards

A cashback credit card pays you back a percentage of everything you spend, usually between 0.5% and 5%. The cashback is typically credited to your account monthly or annually. Some cards offer higher cashback rates on specific categories like supermarkets or fuel, and a lower rate on everything else.

A rewards credit card earns you points, miles or loyalty credits every time you spend. These can be redeemed for flights, hotel stays, retailer gift cards or other benefits. The value of rewards varies significantly between providers, so it’s worth calculating how quickly you’d accumulate and redeem points before choosing.

Yes, if you pay off your balance in full every month. If you carry a balance, the interest charges will quickly outweigh any rewards earned. The best way to use a rewards or cashback card is to treat it like a debit card: spend only what you can afford and clear the balance in full each statement period.

Some rewards and cashback cards charge an annual fee, usually between £25 and £200 per year. Premium cards with generous travel perks tend to charge the most. It’s worth calculating whether the value of the rewards you’d earn exceeds the cost of the annual fee before applying.

You can use most rewards credit cards abroad, but many charge a foreign transaction fee (typically 2–3% per transaction). If you travel frequently, it may be worth looking at specialist travel credit cards designed for overseas spending, which often come with no foreign transaction fees.