Five of the best cashback and reward credit cards
Filed under: Credit Cards
But even though these people display an admirably disciplined approach to borrowing, they are undoubtedly missing a trick if they are not taking advantage of a cashback or reward card. So we've scoured the market for the best deals.
1. The MBNA American Express Card with Cashback has the best long-term cashback rate on the market at the moment.
It pays 1.5% cashback on most petrol and supermarket transactions, and 0.75% on all other purchases. However, the standard rate on the card is 18.9%, making it vital to clear your balance in full each month.
2. If you would prefer a Visa card to an American Express card - which is more often refused by retailers - the MBNA Visa Card with Cashback is another option.
It offers cashback at a rate of 1.25% on most petrol and supermarket purchases and 0.5% on all other transactions. Again, the standard rate on this card is 18.9%.
3. If, on the other hand, you are planning a spending spree (that you can afford to pay for within the six-month interest-free introductory period the card offers) then the best cashback card for you is probably the American Express Platinum Cashback card.
It pays up to 3% cashback for the first three months, after which the cashback rate is up to 1.25%.
Cashback is only paid on purchases worth up to £100 though, so you cannot take out the card in the hope of earning 5% on a single big-ticket purchase. The standard rate is also a hefty 19.9%.
4. If you would prefer to earn reward points rather than cashback, the Tesco Clubcard Credit Card is the current market leader in this category.
It offers Clubcard points on whatever you buy at a rate of one point for every £4 spent, while shopping done in Tesco stores also allows you to collect additional standard Clubcard points.
Advantages of the card include that it has a very generous 15-month interest-free offer on purchases, while those with balances to transfer can also benefit from nine months at 0% - subject to a 2.9% fee – after which the standard rate jumps to 16.9%.
That is of little consequence to borrowers who clear their balances in full every month, though.
5. Alternatively, the Marks & Spencer credit card is a great choice for those who prefer to shop at M&S.
It has a standard rate of 15.9% (that kicks in after the first 15 months at 0% on purchases), and rewards holders with points at a rate of one point for every £1 you spend in-store and one point for every £2 spent elsewhere.
These points can then be used to buy any M&S product that catches your eye.