Which? uses cookies to improve our sites and by continuing you agree to our cookies policy

Barclaycard launches 1% cashback credit card

No-fee card offers excellent deal for low spenders

Barclaycard has launched a new cashback credit card paying an excellent 1% on all spending up to £2,000, and 0.5% cashback after that.

Card fan

Unless you really need to, try not to withdraw cash using your credit card – the interest rates are eye-wateringly high

For every £100 you spend on the card, you get £1 cashback, pushing this new card to near the top of our cashback credit card Best Buys.

Which? expert verdict

Which? credit card expert Martyn Saville commented, ‘This card is an excellent choice for consumers who spend less than £2,000 a year on their credit card and pay their bill off in full every month. For spending above £2,000, the cashback rate goes down to a standard 0.5%.

‘Fans of Barclaycard’s contactless payment system will also benefit from the new Barclaycard cashback card – it offers double cashback on contactless payments up to £10.

‘But don’t be tempted in by Barclaycard’s offer of 10% cashback on the interest you pay on the card – with a typical APR of 14.9%, the card charges more than double the interest rate of Barclaycard’s best card for borrowing, the Simplicity Visa card. The cashback you’d earn would be more than wiped out by the additional interest you would have to pay.

‘The card also offers limited cashback of between £5 and £10 on 0% balance transfers. However, Barclaycard’s order of repayments means that you shouldn’t use the card for spending once you’ve transferred a balance to it – Barclaycard allocates any repayments you make to the cheapest debt first, so you’ll be paying interest on all your purchases until you’ve cleared the 0% balance transfer debt in full. Again, this will soon cancel out any cashback you earn.’

Alternatives to Barclaycard

The new Barclaycard is great if you spend less than £2,000 a year on your credit card. However, big spenders may find that the Egg Money World MasterCard offers a higher level of cashback, despite its £1 monthly fee, as it pays 1% cashback on all spending up to £20,000.

If you’re planning a big purchase in the first three months, the American Express Platinum Cashback credit card is still hard to beat, paying an introductory cashback rate of 5% (up to a maximum of £100 cashback).

For full details of all of these cards, check out Which? cashback credit card reviews. For more details on contactless cards, check out the Which? expert guide.

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what’s going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.

Back to top