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Revealed: The best cashback credit cards to recoup your Christmas spending

Revealed: The best cashback credit cards to recoup your Christmas spending
Matt Browning
Written By:
Matt Browning

If you’re looking for a bonus while shopping for Christmas presents, there are credit card providers offering rewards while you splash out.

Using data from Moneyfacts, we run through the top providers on the market that give you something back for your expenditure.

American Express is one of the leading providers for a bonus and its Platinum Cashback Card deal offers 5% for three months at a maximum of £125, which is then tiered at 0.75%. The purchase rate for the cardmembers is 36.7% APR and usage requires a £25 charge per year.

The provider – as well as its Shop Small Promotion – has an Everyday Card deal which is 5% for three months, but at a maximum of £100, which is then tiered between 0.50% and 1.00% depending on what’s spent.  However, this option has no fee included.

There are high street lenders worth considering too, Santander’s World Elite Mastercard offers 0.50% on spends over £1 per month and requires a £15 fee per year to use.

Elsewhere, Halifax’s alternative World Elite card also offers 0.50% on your potential festive purchases – but up to £15,000 per month, which rises to 1.00% thereafter.

If you’re looking to get gifts this Christmas with a card that doesn’t carry a fee to use, challenger bank Smile is another provider on the market worth considering. It has a Classic Credit Card Visa that gives back 0.25% on your purchases over £1 per month at a rate of 19.9% APR.

Make the most of loyalty card points if you can

As many in the UK plan to spend less this December, Rachel Springall from Moneyfacts explained the advantages of using a credit card this festive season.

Springall said: “Cashback credit cards are useful for shoppers who plan their spending, whether that be for Christmas, in the New Year to take advantage of enticing sales or just everyday use.

“These credit cards reward spenders with a percentage of cashback based on how much they spend online or in-store. The amount of cashback each credit card provider will pay does vary, but so does the interest they will charge on the debt, which is why maximising the cashback is wise, but so is paying off any debt before interest applies.”

Springall added: “One provider to offer an additional incentive for shoppers is American Express, as from 1 until 3 December, it will give customers a £5 statement credit when they spend £15 or more at participating small businesses across the UK through its popular Shop Small Offer.

“As consumers will notice, this is a limited period for shoppers to maximise the reward, and they will need to enrol for the offer to take advantage. Credit cards are also a good method to use for spending in general as shoppers are protected under Section 75 of the Consumer Credit Act.”