Earning a little something back in rewards or cold hard cash whenever you use your credit card can be a good way to make your money go that little bit further. Here’s how to choose the best rewards or cash back credit card.
Credit card providers are so keen for customers to use their cards that there is now a wide selection of incentivised credit cards offering a host of rewards and cashback credit card schemes to tempt you into applying for a card.
If you are confident you'll be able to repay your credit card spending in full each month, then it makes sense to get one the top cash back credit cards or the best credit card rewards so you get something back by giving the card companies your custom.
To find the best cash back credit cards UK banks have to offer, you need to compare the standard cash back rates on offer (those that apply on an ongoing basis) and check whether there are any introductory cash back rates that pay you an enhanced amount for spending in the first months you own the card.
Think about how you'll use the card. If you plan to use your card for day to day purchases then finding the cash back credit card with the best standard cash back rate is likely to be a good idea. However, if you're planning a big purchase, like an expensive holiday, or want to make a number of high value purchases in a short space of time (if you're planning a wedding, or shopping for Christmas presents for example), then a credit card that offers a bonus introductory cash back rate could work out more profitable in the long run.
To get the best reward credit card you should compare the different rewards packages on offer and work out exactly how much you need to spend to earn the rewards you want. In addition, you should look at any introductory bonuses on offer when you apply as these can sometimes make it worth getting a card on their own.
However, if you are looking to make a purchase and spread repayments on your borrowing over several months, a rewards or cashback credit card may not be the best option. Instead you would need to look for an interest free credit card for the duration you need to borrow.
Some credit cards with rewards will also offer 0% deals on purchases or 0% balance transfers for a set period, but there is no guarantee that they will be the best on the market so you should carry out a thorough comparison before you apply.
If you end up having to pay interest on your borrowing this is likely to outweigh the rewards or cash back you’ll have earned in the intervening period so even if you get the best cash back credit card or the best reward credit card on the market you'll still lose out.
You can compare credit card rewards side by side using our rewards and cash back credit card comparison table.