The UK credit card market isn’t particularly generous compared to what Americans get, but there are still some decent cashback options if you know where to look. The main decision you’ll face is whether to get a simple flat-rate card that pays the same percentage on everything, or a category bonus card that pays more on specific spending types like fuel or office supplies.
For most people, flat-rate cards make more sense. They’re straightforward, require zero mental overhead, and if you’re spending enough, they deliver solid returns. Many cashback cards will have an introductory offer around 1%, then fall to as low as 0.25% cashback. Many cards also have a cap to the total cashback given out, so you need to watch out for that too.
The category bonus cards sound appealing at first glance. NatWest Business Plus offers 3% on fuel, which seems fantastic until you realize there’s a £600 annual cap on total cashback. If you’re a delivery driver spending £2,000 monthly on fuel, you’ll hit that cap in just over six months. After that, you’re earning just 0.5% on everything. So yes, category cards can pay more, but only if your spending pattern aligns perfectly with their categories and you don’t hit the cap too quickly.
Here’s where it gets interesting for people willing to manage multiple cards. You could use one card until you hit the cap, then switch to another for the rest of the year. This is genuinely optimal if you have heavy spending in one area, but it requires tracking your cashback and remembering to switch cards mid-year. Most people won’t bother, and that’s fine. The difference might be £100-200 annually, which isn’t nothing but also isn’t life-changing.
One thing that catches people out is minimum spending requirements. Some cards give a higher rate with a minimum spent, but drop drastically if that minimum isn’t met. If you are not going to hit that threshold, you might be better off with a lower cashback percentage and a card with a smaller, or no, minimum.
Cashback cards aren’t going to make you rich, but they’re essentially free money for spending you’d do anyway. Just pick a decent one and actually use it.