With recent credit card spending approaching a record high, we reveal the top five most popular cashback cards applied for in Q1 2015 through Which? Money Compare.
According to figures published by PricewaterhouseCoopers, credit card spending in 2014 showed a marked increase on previous years, with the average credit card balance approaching its all-time high.
However, day-to-day borrowing is not the key reason for many credit card applicants. In our latest credit card satisfaction survey of over 5,000 respondents, a quarter told us they opted for a card for its cashback scheme. And with many cashback credit cards now also offering a plethora of other perks, it’s easy to see why they are so popular.
However, they aren’t for everyone. If you can’t clear your balance in full each month, then these cards may not be suitable, as they typically come with high interest rates that can eat into any cashback earned.
Here, we take a look at the five cashback credit cards which have attracted the most application queries from users of our Which? Money Compare Tables throughout the first quarter of 2015. For each card, we have included a link to Which? Money Compare tables where you can find out more details.
Which Money Compare table: Cashback credit cards – find a great deal
#5 Natwest Cashback Plus Credit Card
A relatively recent newcomer to the cashback credit card market, NatWest’s Cashback Plus MasterCard pays 1% on all supermarket spend (excluding forecourt petrol) and 0.5% on everything else. There is no limit to the amount of cashback you can earn in a year.
You can also earn 1% cashback with a range of selected retailers (see the provider’s site for more details).
You need to earn at least £5 worth of rewards before it can be redeemed in the following ways;
- ‘Bank it’ – transfer the rewards as cash into your current account
- ‘Trade it’ exchange the rewards for gift cards or tickets with selected retailers
- ‘Donate it’ to a chosen charity.
The card has 12.9% purchase APR, but also comes with a £24 annual fee. Click here to find out more.
#4 ASDA Money Credit Card
This cashback card offers a good deal if you shop frequently at Asda. The card offers 1% cashback on Asda shopping and Asda fuel, but drops to 0.5% cashback on all other spend. You can also earn 5% cashback on Asda insurance.
Borrowing on the card is expensive as the card comes with a 18.9% representative APR. Click here to find out more.
#3 American Express Platinum Cashback Credit Card
The American Express Platinum Cashback Credit Card offers one of the highest rates of cashback on the market. The card offers an introductory deal of 5% cashback, capped at £125 for the first three months from account opening, which then drops to a standard rate of 1.25%.
The card comes with a £25 annual fee and a 14% purchase interest rate, so customers should ensure they pay off the bill in full each month. Customers should also note Amex is not as widely accepted as Visa or MasterCard. Click here to find out more about this card.
#2 Nationwide Select Balance Transfer and Purchase Credit Card
Nationwide’s Select Visa offers a number of perks. However, you must hold a Nationwide current account to qualify for the card. The card offers 0.5% cashback on all sterling spend, but is also a good card for use overseas as it does not charge a foreign-loading fee on overseas transactions.
Additionally, it offers 0% interest on purchases and balance transfers for 15 months. The card has a 15.9% representative APR. Click here to find out more.
#1 Santander 123 Credit Card
This card offers 1% cashback at selected supermarkets, 2% at selected department stores and 3% (capped at £9 per month) at selected petrol stations, National Rail and Transport for London.
It also has a table-topping 0% on purchases deal of 23 months. The card has a 12.7% interest rate on purchases and a £24 annual fee. However, the annual fee is waived for one year if you have or open a Santander 123 current account. Click here to find out more about this card.
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