The top cashback credit cards

Credit cardsIf you fancy earning some money on your everday spending, why not use one of the leading cashback credit cards?

So long as you pay your balance off in full each month, a cashback credit card can be pretty profitable, depending on how much you spend each month.

And with strong competition among credit card companies, now's a good time to grab one. Let's take a look at the leading cards out there.

American Express Platinum Cashback Everyday card
The American Express Platinum Cashback Everyday card pays 5% cashback over the first three months.

After that you enjoy a tiered rate of interest depending on how much you spend. Spend up to £3,500 you earn 0.5% cashback, spend up to £7,500 and you get 1% cashback, while spending above £7,500 will bag you 1.25%.

There's no annual fee, and the representative APR (the annual cost of interest and other charges if you don't pay off your bill in full each month) is 19.9%.

American Express Platinum Cashback card
The American Express Platinum Cashback card also pays 5% cashback in the first three months up to £125.

What's more, there's a flat cashback rate of 1.25% on all of your spending after that, irrespective of how much you spend. Each year you have the card, in your anniversary month the cashback rate doubles to 2.5%. However you do need to spend £10,000 in the previous year to qualify for this special 'anniversary' rate.

There is also a £25 annual fee to take into account. This card has a representative APR of 18.7%.

Barclaycard High 5 Cashback card
For the first three months you have the Barclaycard High 5 Cashback card it pays a cracking 6% introductory rate on your top five purchases giving you the chance to earn up to £120.

After that, you'll get 2% cashback on your five biggest purchases each month, and 0.5% on everything else. That's as long as you make at least 15 purchases each month. Plus the rate will double to 4% for one month each year to mark your anniversary with the card, although again only on your top five purchases.

Note that it comes with an annual fee of £24 and also has a relatively high representative APR of 24.8%.

The Santander 123 card
The Santander 123 MasterCard pays 1% on supermarket spending, 2% in department stores and 3% on petrol or train fares. There is a £24 yearly fee, though if you move your current account to the Santander 123 current account, there's no fee for the first year. The representative APR is 22.8%.

Capital One Aspire World
The Capital One Aspire World card is a little different as it pays cashback on your spending at home and abroad, but doesn't charge you a fee on those foreign transactions! That makes it very attractive to people that spend a lot of time overseas or who want to get little back on their holiday shopping.

The card pays a tiered rate of cashback depending on how much you spend. So you earn 0.5% on spending up to £5,999 a year, 1% on purchases from £6,000 to £9,999 and 1.25% on spending of £10,000 and above.

Best of all it doesn't charge an annual fee and has an APR of 19.9%.

Making the most of cashback cards
To make the most of your cashback card, put as much of your spending on it as you possibly can. As a bonus, this will give you the legal protection offered by Section 75 of the Consumer Credit Act 1974.

However, that's not an excuse to spend more than you would normally!

In addition, never use these credit cards to withdraw cash. The charges are horrendous and your withdrawals won't qualify for cashback. Balance transfers also aren't eligible for cashback.

Compare cashback credit cards

Beware the small print

Beware the small print