Picking the right cashback credit cards for daily everyday spending can feel like navigating a minefield. Do you chase cashback? Prioritise travel perks? Or play it safe with low fees?
Let’s cut through the noise and break down the top UK credit cards that reward you for spending on groceries, fuel, and bills, without hidden catches. Basically cashback rewards for spending on things you already have to spend money on!
Cashback Credit Cards: Turn Your Tesco Shop into Free Money
Cashback cards pay you a percentage of what you spend. Simple. But not all are created equal.
1. American Express Platinum Cashback Everyday
- Rewards: 5% cashback (up to £100) for the first 3 months, then 0.5-1%.
- Best for: Big spenders who clear balances monthly.
- Catch: £25 annual fee after Year 1.
- Eligibility: Good credit score needed. Check your eligibility here.
2. Barclaycard Rewards Visa
- Rewards: 0.25% cashback on all spending.
- Best for: No-fuss, no-fee cashback.
- Perk: No foreign transaction fees (rare for UK cards).
3. Santander Edge Credit Card
- Rewards: 1% cashback on groceries, 0.5% on bills.
- Fee: £3/month (waived if you have a Santander Edge current account).
- Hack: Pair with a Santander account for free cash withdrawals abroad.
Useful tool: Compare cashback cards on MoneySavingExpert.
Travel Cards: Earn Free Flights Without the Fuss
If you’d rather jet off to Spain than pocket cash, these cards swap spending for air miles.
1. British Airways American Express Premium Plus
- Rewards: 1.5 Avios/£1 spent. 25,000 Avios bonus if you spend £3k in 3 months.
- Best for: BA loyalists. 25,000 Avios ≈ a return flight to Europe.
- Fee: £250/year.
- Warning: Only worth it if you fly BA 2+ times a year.
2. HSBC Premier Credit Card
- Rewards: 1 point/£1 spent. Points convert to Avios, hotel stays, or vouchers.
- Best for: Free access to HSBC Premier lounges.
- Eligibility: Requires HSBC Premier account (min £75k salary/£500k mortgage).
3. Nationwide Select Credit Card
- Rewards: 0.5% cashback on all spending abroad.
- Best for: Frequent travellers. No foreign fees + competitive rates.
Pro tip: Use travel cards for big purchases (e.g., holidays, insurance) to max points.
Supermarket & Fuel Cards: Save on Essentials
1. Sainsbury’s Bank Credit Card
- Rewards: 2x Nectar points at Sainsbury’s, 1x elsewhere.
- Bonus: 10k Nectar points (£50) if you spend £1k in 2 months.
- Hack: Use at Argos (owned by Sainsbury’s) for extra points.
2. Tesco Club card Credit Card
- Rewards: 1 Club card point/£8 spent. 3x points at Tesco.
- Best for: Converting points to 3x value for days out or Eurostar vouchers.
3. Shell Mastercard
- Rewards: 3p/litre off Shell fuel + 1% cashback on non-fuel spending.
- Catch: Only useful if you live near Shell garages.
The “No Frills” Card for Bad Credit
Aqua Classic
- Rewards: 0.5% cashback on all spending.
- Best for: Rebuilding credit. Accepts fair/poor scores.
- Watch out: 34.9% APR. Only use if you pay off monthly.
How to Maximise Rewards (Without Paying Interest)
- Set up direct debits: Never miss a payment. Interest wipes out rewards.
- Stack offers: Combine credit cards with Top Cashback or Quidco.
- Dodge annual fees: Downgrade before Year 2 (e.g., Amex Platinum → free Basic).
- Check eligibility first: Too many applications hurt your credit score. Use Experian’s eligibility checker.
Mistake I’ve seen: A friend chased BA points but paid £300/year in fees. He flew twice. Net loss: £200.
The Fine Print: What Cards Don’t Tell You
- Cashback caps: Many cards limit rewards (e.g., Amex Platinum caps at £125/year after Year 1).
- Minimum redemptions: Some require £25+ to cash out.
- Expiring points: BA Avios expire after 36 months of inactivity.
Final Verdict
- Cash back kings: Amex Platinum (if you spend £10k+/year) or Santander Edge (for groceries).
- Travel buffs: BA Amex for frequent flyers, Nationwide for no-fee spending abroad.
- Budget shoppers: Sainsbury’s or Tesco cards for supermarket rewards.
Compare all options on MoneySuperMarket before applying.
Remember: A credit card isn’t free money. Treat it like a debit card, spend only what you can repay. Stick to this rule, and you’ll earn rewards and dodge debt.
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