Cashback credit cards are an excellent way to earn rewards on your everyday spending, and the UK market offers a wide variety of options. Whether you're looking to earn cashback on groceries, online shopping, or travel, choosing the right credit card can make a significant difference in the rewards you earn. In this guide, we’ll explore the best cashback credit cards available in the UK for 2025, helping you pick the best card to match your lifestyle.
Why Choose a Cashback Credit Card?
A cashback credit card allows you to earn a percentage of your spending back as a reward. It’s essentially free money for everyday purchases, and the more you use your card, the more you can earn. The best cashback cards offer rewards in the form of cashback on categories like:
Groceries
Online shopping
Fuel
Dining out
Some cards offer higher cashback rates on specific categories, while others provide flat-rate cashback on all purchases. The key is to find a card that matches your spending habits.
What to Look for in a Cashback Credit Card
When choosing a cashback credit card, there are several factors to consider:
Cashback Rate: Different cards offer different rates, so compare the cashback percentages to see which one will give you the best return on your spending.
Sign-Up Bonus: Some cashback credit cards offer generous sign-up bonuses or introductory cashback offers when you spend a certain amount in the first few months.
Annual Fee: While some cashback cards come with an annual fee, others are fee-free. Be sure to weigh the annual fee against the potential rewards you’ll earn.
Spending Categories: Some cards offer bonus cashback rates on specific categories, such as supermarkets, dining, or travel. If you spend a lot in one of these categories, look for cards that offer higher cashback in those areas.
Foreign Transaction Fees: If you travel abroad, look for a cashback card that doesn’t charge foreign transaction fees, or that offers cashback on international purchases.
Top Cashback Credit Cards in the UK for 2025
Here’s a breakdown of some of the best cashback credit cards available in the UK for 2025:
Cashback Rate: 5% cashback on the first £2,000 spent in the first 3 months, then 0.5% to 1% thereafter.
Annual Fee: £0
Best for: New cardholders looking for a generous sign-up offer.
Why it’s great: American Express offers one of the best cashback rates for new cardholders. The 5% cashback in the first 3 months can be a significant amount, especially for larger purchases.
Cashback Rate: 0.25% cashback on all purchases, 1% on supermarket shopping.
Annual Fee: £0
Best for: Supermarket shoppers who want consistent cashback on everyday purchases.
Why it’s great: With the added bonus of 1% cashback on supermarket spending, this
card is ideal for those who do a lot of their shopping in-store or online at UK supermarkets.
Cashback Rate: 0.25% cashback on all purchases, plus extra points through the Tesco Clubcard.
Annual Fee: £0
Best for: Tesco shoppers who also want to earn Clubcard points for added value.
Why it’s great: Tesco’s credit card offers both cashback and the ability to earn Clubcard points, which can be used for discounts or converted into vouchers for Tesco services and partners.
Cashback Rate: 1% on Sainsbury’s shopping, 0.5% on other purchases.
Annual Fee: £0
Best for: Frequent Sainsbury’s shoppers.
Why it’s great: Sainsbury’s credit card offers generous cashback on purchases made at Sainsbury’s stores, both in-store and online, with a decent rate for other purchases as well.
Cashback Rate: 0.5% on all purchases, 1% on certain purchases (selected categories).
Annual Fee: £0
Best for: Shoppers looking for flexible cashback on a wide range of categories.
Why it’s great: With no annual fee and cashback on a wide range of purchases, the Halifax Cashback Credit Card is a solid all-rounder for anyone looking to earn cashback.
Cashback Rate: 1% on supermarkets, 2% on department stores, 3% on petrol.
Annual Fee: £24
Best for: People who spend a lot on petrol or department stores.
Why it’s great: Offering one of the best cashback rates on petrol and department stores, this card is ideal for people who frequently fill up at the pump or shop for non-grocery items at large stores.
How to Maximise Your Cashback Rewards
To get the most out of your cashback credit card, follow these tips:
Pay your bill in full each month: To avoid interest charges that could negate your cashback, always pay your bill on time and in full.
Use your card for everyday purchases: The more you spend on your card, the more cashback you’ll earn. Use it for groceries, petrol, and online shopping to maximise your rewards.
Take advantage of sign-up bonuses: If your card offers a sign-up bonus, be sure to meet the spending requirements to earn extra cashback.
Review your spending categories: Some cards offer enhanced cashback in specific categories, so focus your spending in those areas to earn more.
Final Thoughts: Which Cashback Credit Card is Right for You?
Choosing the best cashback credit card in the UK for 2025 depends on your spending habits and what you’re looking to get out of your card. Whether you’re a frequent shopper at supermarkets, travel often, or want a simple, no-annual-fee card, there’s an option for everyone.
By comparing cashback rates, annual fees, and rewards programs, you can select the card that provides the best return on your spending. Don’t forget to check for any introductory bonuses and make sure the card fits your lifestyle.
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