How to find the best credit card Cashback and reward credit cards
Cashback credit cards
Some cards offer cashback or reward vouchers, but they're only worth considering you pay off your credit card bill in full every month
Cashback credit cards give you money back based on how much you spend on the card. Cashback is paid to your account monthly or yearly. It is usually around 0.5%, but can be as high as 1.5% of the amount you spend.
To choose the best card for you, you firstly need to work out roughly how much you are going to spend - some credit cards give you more cashback the more you spend, while others are less generous for higher spenders. To find the best cashback credit card for you, see the table of Which? Best Rate cashback credit cards.
Problems with cashback and rewards on credit cards
Be aware that some credit cards take away your right to cashback if you make late payments or exceed your credit limit. Some also impose a minimum cashback level each year of, say, £10. So, if you earn less than £10 in cashback one year, some cards don't pay it out or even roll it over - you just lose it altogether.
To make the most of cashback, put all your spending on the card and always pay the balance off in full each month so that you don't pay any interest.
How safe is cashback?
Cashback may feel like money in the bank, but it doesn't enjoy the same protection. In the unlikely event that your card provider goes bust, your cashback and other rewards such as vouchers are not protected by the Financial Services Compensation Scheme.
It's also important to watch the limited shelf-life of some rewards - some credit card providers put an expiry date on their vouchers. To avoid losing out, spend the vouchers when you receive them.
Credit cards with reward schemes
Some credit cards give you points which you can then redeem against goods and services or convert into reward vouchers.
Not surprisingly, they reward spending in their own stores more highly than spending elsewhere. The points they offer can be converted into vouchers for in-store purchases, so it is possible to work out an equivalent value to the cashback offered by other cards for the same spending.
It's also worth remembering that the points can often be traded for special offers in-store or on days out, so you can sometimes extract even more value from your card by taking advantage of these extra benefits.
For the best credit card reward and cashback deals, read Which? reviews of cashback credit cards and rewards credit cards.
Credit cards that come with travel insurance
Some credit cards offer free travel insurance. If you rely on this insurance, check it covers everything a comprehensive travel policy would. As a minimum, it should give adequate cover for losing baggage, travel delays, medical expenses, personal liability and cancellation and curtailment of your holiday.
Have a look at the Which? review of travel insurance policies to see the minimum cover we expect from a good travel insurance policy.
- For any financial query, call our experts on the Which? Money Helpline
- Check out our Best Rate credit cards for everyday use
- Take look at our guide to how credit card interest is calculated
