The best cashback and reward credit cards – inc 5% Amex

Earn as much as 5% back when you spend from the likes of American Express, Amazon and Tandem.

Pretty much every time I spend money I am earning money. Ok, only a little bit but it all adds up. Don’t roll your eyes. It really does. The way I do this is through a cashback credit card, or more accurately, through a couple of cashback credit cards.

Rates aren’t as good as they were a few years ago, and there are fewer cashback cards available, but even if you’re only getting 0.5% I think it’s worth having in your wallet. Fortunately, it’s possible to get more than that with introductory offers.

My first pick to use is an American Express Platinum, which gave me 5% to start and now gives me 1% on every full pound I spend. Then I’ve just added two new cards to my wallet. First is Tandem which will give me 0.5% at home (useful when Amex isn’t accepted) and abroad – with no foreign use fees. Next up is Amazon’s Platinum which as a Prime member doubles my rewards, as well as giving me a bonus £25 voucher.

Below you’ll be able to read more about these and other decent cashback and reward cards, and I’ll keep coming to this page to and updating it as deals change. But first, a really important rule if you are using one.

Always pay off the balance in full every month

There’s no point using a cashback credit card if you’re going to get charged interest on your purchase. My new Amazon Platinum card charges almost 25%, which would quickly eat up the 1.5% equivalent in reward vouchers. So make sure you set up a Direct Debit to clear the full balance. If you can’t afford to do that, then a credit card probably isn’t your best option except for emergencies. I’ve written more about clearing credit card debts, so do read that.

It’s also worth doing an “eligibility check” before you apply if you can. This gives you a sense of whether you’ll be accepted, though not a guarantee. However if you get rejected it can hurt your credit score.

Reward vs cashback credit cards

There are two types of card which earn you money as you spend. Cashback credit cards pay you back in cold, hard cash. Well, it’s usually credit to your card, but you get to spend that as you want. If you’re able to put most spending on an American Express, then I think the first card is the better of the two Amex Platinum Cashback credit cards, even though it’s got a fee as the extra cashback cancels this out. However in year two it might be worth closing it down an opening up an alternative.

Reward cards are slightly different as you get points, which are usually then transferred into vouchers at the linked retailer. Sometimes the points are for airline schemes and you use them to get cheap flights or upgrades. However these come with restrictions so unless you fly regularly and rack up lots of these I think you’re better off avoiding these.

American Express vs Mastercard vs Visa

The best cashback deals for a long time have been via American Express, and I always try to use an Amex to pay. But try is the operative word there, as many retailers still don’t accept the card. So I make sure I’ve also got an alternative cashback credit card on me. Until recently that was a TSB Platinum, but the cashback deal on that ended in June, so I’ve replaced it with a Mastercard from Tandem. Though the rate is lower, it will be accepted everywhere, including overseas for no fee.

My top cashback and reward credit cards

American Express (Amex) Platinum Cashback Credit Card

Though this card comes with a £25 fee, you’re able to earn more in the promotional three months than the fee-free equivalent. Plus you can get £30 (at the time of writing) extra through applying for the card via cashback site Quidco. It’s worth looking at the fee-free alternative (more on this further down) if you don’t think you’ll be spending much.

What you can earn:

• 5% for the first three months (up to £2,500 spend) – worth up £125
• 1% after on spend up to £10,000 – worth up to £100
• 1.25% on spend over £10,000 – no cap
• Additional cashback offers you can add to your card throughout the year via your account

Fees, details and how to apply:

• £25 annual fee
• Get a bonus £25 cashback when you apply via Quidco
• Not joined a cashback site? Get an extra £10 bonus when you sign up
• Got a friend with one? See if they’ve got a referral code to earn you both some cash

Tandem credit card

This is a new app-only digital bank, and I’m very happy to add it to my wallet. Not only can I get 0.5% cashback when my Amex isn’t accepted, but I can use it abroad without getting charged a fee and still earn cashback. It’s my pick above similar rates from John Lewis because you earn cashback on every £1 spent, not £2. There’s a £10 AmMazon voucher for new applications.

What you can earn:

• 0.5% on each full £1 spent
• No cap on annual cashback you can earn

Fees, details and how to apply:

• Fee-free spending overseas, though interest charged on overseas cash withdrawals
• No annual fee
• Mastercard
• Apply for a Tandem credit card and get a £10 Amazon voucher

Amazon Platinum Credit Card

A really decent deal if you spend at Amazon and are Amazon Prime member (if you’re not you can join free for 30-days then £79 a year). You also get cashback on every penny spent, not just full pounds.

A joining offer comes and goes, but often there is a £20 Amazon voucher for successful applicants, so take a look.

What you can earn:

• Prime members: 3 Amazon reward points for every £2 spent at Amazon (equivalent to 1.5%)
• Prime members: 1 Amazon reward points for every £2 spent elsewhere (equivalent to 0.5%)
• Everyone else: 1.5 Amazon reward points for every £2 spent at Amazon (equivalent to 0.75%)
• Everyone else: 1 Amazon reward points for every £2 spent elsewhere (equivalent to 0.5%)
• 1,000 points = £10 Amazon voucher
• No cap on annual rewards you can earn
• 0% interest for first three months

Fees, details and how to apply:

• No annual fee
• Mastercard
• Apply for an Amazon Platinum Credit Card
• Get Amazon Prime for free for 30 days to get the £20 bonus sign-up offer 

Other cashback and reward credit cards

These are mainly American Express alternatives which could work out better for you depending on your situation.

M&S Bank

The big draw here is actually the incentive for applying. Sadly the £45 offer has ended but you can still get £20. You just need to use the card within 90 days – you could even buy a single banana.

You also get double points when you shop at M&S, making it the equivalent of 2% cashback. That’s very good if you regularly shop at Marks. But the Amex, Tandem and Amazon cards are better options for spending elsewhere.

What you can earn:

• 2,000 points (worth £20) after three months as long as you use the card in first 90 days
• 2 points (i.e. 2%) per £1 spent at M&S for first 12 months, then 1 point per £1
• 1 point per £5 (i.e. 0.2%) spent elsewhere
• 0% purchase for first six moths
• No cap on annual cashback you can earn

Fees, details and how to apply:

• Fee-free spending overseas, though interest charged on overseas cash withdrawals
• No annual fee
• Mastercard
• Apply for a Marks and Spencer Bank credit card

American Express (Amex) Platinum Cashback Everyday Credit Card

What you can earn:

• 5% for the first three months (up to £2,000 spend) – worth up £100
• 0.5% after on spend up to £5,000 – worth up to £25
• 1% on spend over £5,000 – no cap

Fees, details and how to apply:

• No annual fee
• Get a bonus £10 cashback when you apply via Quidco
• Not joined a cashback site? Get an extra £10 bonus when you sign up

American Express (Amex) Preferred Rewards Gold Credit Card

What you can earn:

• Bonus 20,000 reward points when you spend £2,000 in your first three months – worth up £100
• 1 point for every £1 spent (roughly 0.5%)
• Two free airport lounge passes
• Bonus 10,000 points on each year if you spend £15,000 within 12 months

Fees, details and how to apply:

• Points claimed via Amercian Express Rewards site
• £140 annual fee (free in your first year)
• Get a bonus £10 cashback when you apply via Quidco or TopCashback
• Not joined a cashback site? Get an extra £10 bonus when you sign up

American Express (Amex) Nectar Credit Card

What you can earn:

• Bonus 20,000 Nectar points when you spend £2,000 in your first three months – worth £100
• 2 point for every £1 spent (equivalent to 1%)
• 4 points for every £1 spent at most Nectar partners (equivalent to 2%)
• Bonus 10,000 points on each year if you spend £15,000 within 12 months

Fees, details and how to apply:

• Points claimed via Nectar account
• £25 annual fee (free in your first year)
• Get a bonus £30 cashback when you apply via TopCashback
• Not joined a cashback site? Get an extra £10 bonus when you sign up