Credit cardsCredit card deals are getting better and better at the moment, and the good news if you pay your balance off in full every month is that the number of cashback offers is on the up.

The reigning champion of cashback cards – American Express – is facing stiff new competition from Capital One, which has by re-launched its World MasterCard with a generous cashback offer and no annual fee.


The new deal from Capital One lets you earn up to 5% cashback for the first 3 months up to a maximum of £100 - which is the same amount offered by the Amex card.

After this introductory period finishes, you will also earn unlimited cashback on a tiered basis of 0.5% on purchases up to £5,999.99, 1% on all purchases from £6,000 to £9,999.99 and 1.25% on all purchases from £10,000.

This is slightly less generous than the cashback offered by American Express, which pays 1.25% on all spending over £7,500. It also has a lower standard rate of 18.9% versus 19.9% with Capital One.

However, American Express is at a slight disadvantage as its cards aren't as widely accepted as MasterCard due to the higher fees it charges retailers.

While you need to earn at least £20,000 to be eligible to apply for the Capital One card, this is also lower than the £30,000 household income required by Amex.

You will still need an excellent credit history to qualify for the new World Mastercard, however, as Capital One has been very clear that it is only seeking customers with perfect credit scores.

If you are unsure whether you will qualify under these terms, it is therefore a good idea to use an online tool such as Moneysupermarket's Smart Search to find out what your chances are before further damaging your record with a rejected application.

Whichever cashback card you take out, you should also set up a monthly Direct Debit to repay your balance in full to avoid interest charges wiping out the benefits.