What is a Cashback or Rewards Credit Card?

A cashback credit card gives you money back on each retail purchase transaction you make, usually up to an annual limit. The amount of cash you get back may be tiered depending on the amount you spend, the more you spend the greater the cashback amount. There may be special introductory offers up to 5% cashback in the first few months.
A rewards credit card gives you a loyalty bonus for each purchase, and maybe at the time you take your card out. The rewards can be in the form of loyalty points or air miles.

Who are they suitable for?

If you pay off your credit balance each month a cashback or rewards credit card may be for you, because you won't be concerned about the interest rate on the account.
Take a look at our cashback credit cards best buys or rewards credit card best buys for the best deals around. For the full list of cashback or rewards (loyalty schemes) credit cards go through the credit card product search.
What should you look out for?

Look for how the cashback amount is calculated. Its always a percentage of your spend but the tiers of spend will be different so think about how much you normally spend each month to work out how to maximise your cashback.
You'll usually only earn cashback or rewards when you spend on your card, but not on cash withdrawals or balance transfers.
So you can understand the ins and outs of credit cards, Moneyfacts.co.uk has put together guides on things to watch out for and the key factors to consider when purchasing a card.

If a cashback credit card or rewards credit card isn't for you, we've got guides and best buy tables for 0% balance transfer credit cards, donation credit cards, retail purchase credit cards and overseas usage credit cards.

What to do next
Take a look at the latest credit cards best buys to check the latest rates and deals on offer.