What Are the Best Cashback Credit Cards?

May 16, 2019

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Here at TPG UK, we love credit cards that earn points and miles. However, we also appreciate that you may just want a simple reward of straight cashback before considering diving into the world of miles and points.

There are a number of credit cards branded with supermarkets or banks in the UK that offer some cashback, but the best cashback options we’ve found are generally issued by American Express. Here are our top two picks.

1. The Platinum Cashback Credit Card From American Express UK

This card does have an annual fee of £25, however, it offers a generous introductory cashback offer of 5% on purchases up to £125 total in the first three months of card membership. If you’re able to maximise the welcome bonus offer of 5% back, you can cover the annual fee several times over.

After the first three months, you’ll receive 1% cashback on up to £10,000 in purchases each year, with this rate increasing to 1.25% for total spend over £10,000, which is unlimited.

Say you spend the £2,500 in the first three months and then a further £20,000 over the other nine months of your card membership year, you would receive £350 in total cashback (being £125 + £100 + £125).

That’s not a bad return for a £25 annual fee card. But like other Amex cards, you’ll be hit with a 2.99% foreign transaction fee on international purchases, which is higher than the value of the cashback you would receive (outside of the welcome bonus 5% amount). Keep this fee in mind if you are using this card for foreign purchases.

As you’re earning straight cashback rather than loyalty points, you’ll receive a discount on your balance each month. There’s no hassle in trying to redeem any benefit — it’s automatically done for you.

You can read a full review of this card including its travel benefits and representative example here.

2. The Costco TrueEarnings American Express Credit Card From American Express UK

This card works a bit differently, as there are category bonuses for the cashback earning. Because of the bonus categories, you could potentially get even more cashback if you spend more on dining, travel and at Costco.

There’s no welcome bonus for this card, but equally no annual fee. The cashback structure is as follows:

  • 3% cashback on most dining (with no limits)
  • 2% cashback on most travel bookings (with no limits)
  • 1% cashback at Costco and elsewhere (to a maximum of £300 each year)
  • An additional 1% cashback at Costco for Costco Executive members

Unfortunately, receiving the cashback is clunky, and far from ideal. Most cashback cards would simply apply the cashback you have earned to your statement each month, reducing the balance payable.

Instead, this card will send you a paper voucher once a year for the full value of all cashback you have earned for the period. This means you will need to wait all year in order to utilise your rewards.

You can read a full review of this card including its travel benefits and representative example here.

Bottom Line

If you’re in the market for a credit card and cashback is your preferred reward of choice, there are some lucrative products on the market. Because of the Costco card’s generous earn structure, your cashback could add up quicker. Likewise, the Platinum Cashback card from Amex could give you some great value — especially if you’re able to maximise its welcome offer.

Featured image by The Points Guy

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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