According to the report by financial research group Defaqto, the number of cashback cards has doubled in the past two years.
A total of around 245 different credit cards are said to be on the market, with three quarters regarded as standard, rather than platinum or gold, cards.
The most common reward features were said to be points schemes and shopping rewards, found on 20% of cards. Airmiles – now known as Avios – featured on 10% of cards, while 9% of cards had cashback rewards.
While cashback is the only card feature to have seen a big rise in the past two years, it still only features on 22 cards.
How cashback works
Each time you pay for something with a cashback credit card, an amount of cashback is earned.
After a set period – usually monthly or annually – the cashback amount is paid directly to your card. Cashback amounts can vary between £1.10 and £36 for every £100 spent on the card each month.
The report stated that customers would need to spend well in excess of £1,000 per month to make a cashback card truly worthwhile.
uSwitch’s top cashback cards for Christmas
Buying up to 5 big gifts
The Barclaycard Cashback Card will give 6% back on your top five purchases as an introductory offer for the first three months. On an on-going basis you will get 2% back on your top five purchases every month and 0.5% on everything else, for an annual fee of £24.
Multiple presents to buy
For those with longer Christmas shopping lists the Amex Platinum Cashback Credit Card guarantees a flat fee of 5% for the first three months and a rate of 1.25% thereafter – which will be doubled for one month every year. There is an annual fee of £25.
If you’re not spending a great amount this year, it’s worth considering the Aqua Reward Card. The cashback offering is simple – 3% on everything and capped at £100 for the first year. It’s a great card for people with poor credit histories, but as with all cashback cards you must pay off the entire balance in full every month, otherwise the 34.9% interest rate will eat away at the benefits.
Taking care of the essentials
If Christmas shopping is the least of your worries and you just want something back from your everyday spending, the Santander 123 Credit Card could be for you. Geared towards customers with big supermarket and travel bills, it offers 1% cashback in supermarkets, 2% in department stores and 3% on petrol and trains – but only up to a maximum of £9 cashback a month. The monthly fee of £24 a year is waived for the first year if you have a Santander 123 current account.