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11 min read 19.07.2021 104

Best Cashback Credit Cards

We don't know a single person who would say no to free money. So, when the opportunity arises for users to get cash back when they make everyday purchases. You can see their interest peaked however, there are some questions on the mind of every potential card holder: How do you apply for one? Are there monthly service fees? This askwallet article will answer all these questions.

Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet

Fact checked! This material is written by an expert.

11 min read 19.07.2021 104

What is a cashback credit card?

A cashback credit card has mostly the same features as a regular credit card with the main difference being reward. The rewards that come with cashback credit cards return a percentage of what you have spent in form of credit on your expenses. The rewards usually take place on a monthly, quarterly or annual basis. 

In the past there were a lot more cashback credit cards circulating the EU for users to choose from. However, In 2015 the EU put a limit on the interchange fees providers can charge merchants. Due to this many cashback credit card providers have pulled their service away from the EU. However our team here at AskWallet have dug deep to find the best cashback credit cards that are still providing their service to EU users and all over the world.

If you are a savvy spender or have a way with money, you already know the importance of getting cash back credit cards. If you’re not, just think about earning extra cash on your everyday spending.

How do cashback credit cards work?

Well, more like many different cashback schemes that exist at your local supermarket, cashback credit cards work in almost the same way. These credit cards pay you a percentage of the money that you have spent. 

Usually, when you first apply for a cashback credit card, the provider provides an introductory rate that is capped for new card owners. However, this is usually followed by an on-going rate This isn't true for every cashback credit card; some pay a flat rate as long as you are constantly using the card to make payments. 

We will get  into the different types of cashback credit card and how to choose the cashback credit card that's right for you. Many of these cards have an annual fee, but if you use your card frequently and return the balance in full each month, you may earn hundreds of pounds each year.

Best cashback credit card 2021

Capital One Quicksilver Cash Rewards Credit Card

The Capital One Quicksilver Cash Rewards Credit Card is a very popular card in the cashback credit card space. Known for its flat rate rewards, users can receive cashbacks on all purchases made with the card. In addition, there is no annual fee or foriegn exchange rate fees associated with the cashback credit card. 

What kind of person should consider getting the Capital One Quicksilver Cash Rewards Card? Well, if you are looking to maximize your everyday spending and escape annual fees then this might just be the right card for you!

Features of Capital One Quicksilver Cash Rewards Credit Card
Rewards rate

Cardholders will receive a 1.5% cash back reward on all purchases

Welcome offer

This cashback credit card provides its users with a cash bonus of $200. However, this can only be claimed after the card holder has spent $500 within a three month span of opening an account.

Annual fee

With this cashback credit card, there is no annual fee.

Purchase intro APR

The APR is 0% for the first 15 months

Regular APR

Regular APR varies but it's usually with the ranges of 15.49% to 25.49%

Getting cash back

The Quicksilver is a great rewards card if many of your expenses fall outside the usual bonus categories, such as superstore purchases, a range of online shopping retailers and bill payments.

Its unlimited 1.5 percent cash back on all purchases can make this card a valuable partner especially if you regularly spend beyond bonus categories’ reward spending caps.

Redeeming cash back

You can redeem your cash back rewards for hard cash in the form of a check, or you can receive it as a statement credit. Cash back can also be used to cover recent card purchases, online purchases at checkout on Amazon.com and PayPal or equivalent gift cards.

In the spirit of making things a little easier, you can also choose to receive your cash back automatically at a set time each year or at a certain cash value. That way, you don’t have to track your rewards balance.

Other advantages
Card Security

The Quicksilver card comes with a healthy spread of travel and shopping protections for a no annual fee card.

Virtual credit card numbers through the Eno assistant app can guard your real card data while you shop online, and extended warranty protection, travel accident insurance and auto rental collision damage insurance can keep you covered when you pay with your card.

Travel perks

You’ll be able to snag exclusive travel and entertainment opportunities like pre-sale tickets through Capital One Access. Plus, you can access a variety of 24/7 services like travel and roadside assistance and complimentary concierge assistance.

Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Cash Rewards credit card is one of the most sought after cashback credit cards for people who enjoy making purchases at restaurants and other forms of entertainment. In addition, cardholders can get a referral bonus if the user spends at least $500 in the first three months of getting the card activated. 
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Features of Capital One SavorOne Cash Rewards Credit Card
Rewards rate

Cardholders will receive a 3% cashback reward on dining, restaurant as well as on streaming services. Not to forget that the same cashback rate applies to grocery store purchases. 
Welcome offer

This cashback credit card provides its users with a cash bonus of $200. However, this can only be claimed after the card holder has spent $500 within a three month span of opening an account.

Annual fee

With this cashback credit card, there is no annual fee.

Purchase intro APR(Annual Percentage Rate)

The APR is 0 percent for the first 15 months

Regular APR 

Regular APR varies but it's usually with the ranges of 15.49% to 25.49%

Getting cash back

Capital One has updated the SavorOne card's cash back categories such that it now rewards 3% on all bonus category purchases . In addition, your SavorOne may now earn an infinite 3% cash back on a number of notable streaming platforms.
Redeeming cash back

For a statement credit, check or gift card, a cash back can be requested for any amount at any time. You may also purchase on Paypal (choose "Pay with Points") and Amazon.com (choose "Shop with Points") using your rewards.

Additional perks 
Travel benefits

For cardholders traveling abroad don't have to worry about  international Which makes this card a wonderful travel partner. There is also a 24-hour service of travel support which offers a substitute emergency card. When they use their credit cards to purchase their tickets, cardholders also qualify for travel accident insurance.


Capital One QuicksilverOne Cash Rewards Credit Card 

     

Individuals who want to build their credit and get rewarded while they do it should consider the Capital One QuicksilverOne credit card. The card provides cash back rewards on every purchase and is one of the few cards that is available to those with fair credit.

Plus, cardholders are automatically considered for a higher line of credit in as few as six months with on-time payments. With responsible use, Capital One QuicksilverOne credit cardholders may improve their credit scores while earning rewards along the way. Not to mention it also comes with attractive Capital One features, like no foreign transaction fees, emergency card replacement and $0 fraud liability.

Features of the Capital One QuicksilverOne Cash Rewards Credit Card 
Rewards rate

The cashback rate for cardholders is an unlimited 1.5%  on all purchases

Annual fee

Cardholders have to pay an annual fee of $39

Regular APR

 26.99 percent variable 

Welcome bonus 

Sadly, with this card, there are no current registration bonuses.

Rewards rate

All expenditures with the QuicksilverOne Cash Rewards Credit Card are returned at a rate of 1,5%.

In the form of a cheque or a statement credit, cardholders may decide to get cash-back compensation. (Note: declaration loans cannot be utilized to fulfill minimum payment requirements.) Cardholders can also spend money on gift card rewards, although reimbursement rates may vary.


Other cardholder perks
Benefits for credit development

The credit card is accessible to anyone with fair or higher credit, Capital One QuicksilverOne Cash Rewards. Cardholders can immediately be counted with on-time payments in no more than six months for a larger credit line. And all three main credit reporting offices are informed of credit card use by this card. This implies that cardholders may enhance their credit rating by using them responsibly.

Benefits for travel

There are no transaction fees with this card. Cardholders may also contact customer service for 24 hours, $0 fraud, and receive security alerts. You won't incur transaction fees in the course of making a purchase with this card.

Benefits for shopping

Capital One Shopping provides this card. Capital One Shopping is a solution for online shopping which adds existing coupon codes to your order automatically.
 

Cashback credit cards golden rules to follow

With a cashback credit card, there are a few things to bear in mind to make sure you use them effectively. We’ve set out the golden rules below.

Try to avoid debt

Cashback credit cards are lucrative when you just use them with a debit card to spend money that you genuinely want.  They are not very good for borrowing generally with few cards that provide competitive 0% deals.

When you pay interest on credit card debt already, you should have considered a 0 percent balance transfer card or attempt a 0 percent purchase card if you wish to stretch costs for a new purchase.

Every month pay down the Entire Amount

It's vital to ensure that you pay out your credit card debt completely every month, otherwise the interest could be greater than the benefits. In order to avoid forgetting, we propose that you set up a direct debit to clear your balance every month.

Maximize your cash back with daily expenditure

You should strive to utilize it as much as possible in order to maximize your cashback credit card. Each time you make your purchase, the best cash back credit cards reward you so it makes sense to utilize them whenever you can instead of cash or payment cards.

Why get a cashback credit card?

Nothing is better than getting something for free, and cashback credit cards can provide only that! You may earn money on everything you buy and you can profit from a broad range of extra perks if managed correctly.

These cards are suitable for ordinary card users like individuals who want to utilize plastic for their daily expenses and use their money to fully pay off their debt every month. In this approach, consumers actually receive something out of money they would spend anyhow, which would make you easily benefit from if you do things the proper way.

However, it is important to ensure you are adequately responsible for managing things. Only those who can easily reimburse the debt in full every month should ever choose cashback credit cards, otherwise any cashback gained will erase interest.

Types of cash-back credit cards

Three primary types of cash-back credit cards are provided which govern how cash payments are collected.

Flat rate cashback cards

Cash-back flat rate cards give you a defined proportion of your cash back, whatever you buy on your card. A good baseline is 1.5% cash back on all. But a couple of cards will offer you 2 or more.

Tiered cashback credit cards

In particular categories of expenditure, such as foodstuffs or gas, tiered cards earn more and usually 1% of all other items. You can choose which categories will earn the most rewards with particular cards.

How to compare cash-back credit cards

How you use money and your patience to track categories of rewards hinges on what kind of cash-back credit card you choose. Consider a tiered or bonus category card if you spend a lot on certain classes, such as gas or grocery products. Do not want to recall what extra categories your cards have, go for a flat-rate card.

Once you’ve decided which type of cash-back credit card works best for you, consider these factors:

Annual fee

Nobody wants to pay an annual fee and most cash-back cards don't have one,  but it may occasionally be advantageous. This is because cards with annual fees sometimes provide more enticing benefits, such as greater cash-back rates on some or all of your spending.

The trick is to ensure that paying the yearly fee is mathematically justified. Consider the charge to be a deduction from your yearly cash-back total.

Sign-up bonus

A cash sign-up bonus is wonderful to have if your frequent spending is sufficient to earn it. (Typically, you'll need to invest $500 to $1,000 in the first several months.) It's basically free money. Alternatively, for a card with an annual charge, it may compensate for the price for a few years.

However, don't dismiss cash-back cards that don't come with a bonus. Bonuses are less prevalent with cash-back cards, and they are lower in value when compared to travel credit cards. Depending on how much you spend and where you spend it, a higher rewards rate on one card may be a better value than a bonus and a lower rate on another.

Flexibility

What are the rules for receiving your cash back? Some cards have a limit — perhaps, before you can redeem, for example, you will get $25 in cash back. Some cards allow you to collect the cash back as a declaration credit that can reduce your future credit card. Others allow you to pay cash to your bank account immediately, while some people give a physical check to send. Some issuers can provide you more than cash back – goods or gift cards, for instance. And there may be others who can transfer cash-back points to a different card programme, where strategic use could give better value.

0% introductory APR period

You do not normally wish to have a monthly balance with reward cards but certain cash back cards give 0 percent of new purchases, balance transfers, or both of the APR periods.

Interest costs are charged for a balance from month to month that can increase the worth of your income. Look for a low-interest credit card if you are expecting to carry a balance.

Ibrahim Busari
As a fintech writer at AskWallet, he uses his metaphorical pen to guide you through the world of EMIs. He is an Ural Federal University Alumni and has been working in the financial and iGaming industry since 2016.