1.American Express Everyday Cashback Credit Card
American Express
- 5%Cashback on eligible purchases in the first five months
- 0.75%Cashback on the first £10,000 of purchases
Earn 5% cashback on spending for the first five months, up to £125.
Earn 5% cashback on eligible purchases in the first five months, then 0.75% on the first £10,000 of purchases.
29.4% Variable APR
The American Express Everyday Cashback Credit Card stands out as the top choice because it offers a generous 5% cashback on purchases for the first five months, making it ideal for new cardholders looking to maximize rewards quickly. Its no annual fee structure further enhances its appeal, providing excellent value for everyday spending.
Pros:
- No annual fee
- High initial cashback rate
Cons:
- High APR after introductory period
- Eligibility restrictions for welcome bonus
2.Lloyds Ultra Credit Card
Lloyds
- 1%Cashback on all purchases for the first year
- 0.25%Cashback on all purchases after the first year
Earn 1% cashback on all purchases for the first 12 months.
1% cashback on all purchases for the first year, dropping to 0.25% thereafter.
12.9% Variable APR
What sets the Lloyds Ultra Credit Card apart is its straightforward cashback structure, offering 1% on all purchases for the first year without any monthly fees. This makes it an excellent choice for users who want to earn rewards while keeping costs low.
Pros:
- No annual fee
- Low APR
Cons:
- Cashback drops significantly after the first year
- Interest applies if balance is carried
3.Santander Edge Credit Card
Santander
- 2%Cashback at major department stores (up to £300/month)
- 1%Cashback on all other purchases (up to £10/month)
Get £48 cashback if you use the card 10+ times and set up a Direct Debit within the first three months.
1% cashback on all purchases, with 2% cashback at major department stores (up to £300/month).
37.8% Variable APR
The standout feature of the Santander Edge Credit Card is its targeted cashback offer for current account holders, providing a unique incentive to maximize rewards through regular usage. This card is particularly beneficial for those who frequently shop at major department stores.
Pros:
- Access to Santander Boosts for additional rewards
- No foreign exchange fees
Cons:
- Monthly fee adds up
- High APR
Final Words
In summary, choosing the best cashback credit card for your needs involves evaluating the rewards, terms, and fees associated with each option. Take time to compare different cards this January to ensure you make an informed decision that maximizes your cashback potential.
Frequently Asked Questions
Earn 5% cashback on spending for the first five months, up to £125.
Earn 1% cashback on all purchases for the first year, dropping to 0.25% thereafter.
You earn 1% cashback on all purchases, with 2% cashback at major department stores (up to £300/month).
Yes, cashback credit cards can provide substantial rewards on everyday spending. However, it's important to choose a card with a rewards structure that aligns with your spending habits.
Many cashback cards have no annual fee, making them accessible for most users. However, premium cards with higher rewards rates may charge annual fees, so consider your spending level to determine if the extra rewards justify the cost.
Eligibility for cashback credit cards typically requires a good credit score and a stable income. Each card issuer will have its own criteria, so it's best to check their requirements before applying.
When comparing cashback credit cards, consider factors like the welcome bonus, ongoing rewards rates, any annual fees, and how rewards are structured. Look for a card that best matches your spending habits for maximum benefits.
