What is Cashback on a Credit Card?

If you’re a confident credit card user and typically clear your balance in full each month, you might wonder if you could be rewarded for your spending.

In our guide, we’ll explore:

• Is there such a thing as a cashback credit card?
• Can you get cashback on a credit card?
• What does cashback mean on a credit card?

Is there such a thing as a cashback credit card?

Yes, a cashback credit card is a type of rewards credit card that gives you back some of what you’ve spent.

Can you get cashback on a credit card?

Yes. Other rewards credit cards might offer air miles or store points, while a cashback credit card gives you money back when you make an eligible purchase using your cashback credit card.
For example, if your card offers 1% cashback and you spend £500, you’d get £5 back (rates will vary).

If a cashback rewards credit card sounds right for you, take the time to explore the options available and find one that offers the most relevant rewards for your lifestyle.

What does cashback mean on a credit card?

If you’re wondering what cashback means on a cashback credit card, you’ll use it the same as a standard credit card, but you’ll get something back for your spending.
You can typically expect a cashback credit card to work a little like this:

1. Use your cashback credit card to make a necessary, affordable purchase. Remember, you should never spend more money than you need to or can afford to repay.


2. You’ll get back a percentage of the amount spent on eligible purchases.


3. As you would with a standard credit card, pay at least the minimum repayment due each month. If you pay your balance in full and on time every month, you won’t be charged interest on purchases.

Is a cashback credit card the same thing as ‘getting cashback at the till’?

No, cashback on a credit card is not the same as ‘getting cashback at the till’.
Getting cashback at the till looks a little like this:

• You buy an item for £10 at the local shop.
• When you pay, you ask the shop assistant for £20 cashback.
• The shop assistant takes £20 out of the till and hands it to you.
• You pay £30 on your debit card, covering the cost of the item and the cash.

Requesting cashback at the till can be a convenient way to get money without going to the cash machine.

Important: while you could ask for cashback at the till with a credit card, this is considered a ‘cash advance’. A cash advance, which also includes using a credit card to withdraw money from a cash machine, comes with fees and could harm your credit score.

How is cashback paid?

Cashback will either be paid into your bank account automatically or credited to your credit card balance.
When it’s paid will depend on your credit card provider; for example, some may pay cashback monthly, quarterly, or annually.
You’ll find the details of your cashback scheme in your credit agreement.

What’s the downside of cashback?

There are things you should be aware of before deciding whether a cashback credit card is right for you.

• Cashback credit cards could come with a higher rate of interest. You can avoid paying interest on purchases by clearing your balance in full each month.


• Don’t buy things you don’t need or can’t afford to repay just to earn cashback.


• If you don’t pay your balance in full, the interest you’re charged could be more than the cashback you earn.


• Some credit card providers limit the amount of cashback you can earn.


• You may be charged an annual fee.


• You usually won’t earn cashback on cash advances or balance transfers.


• If you make a late repayment or miss one altogether, you could lose your cashback. A late or missed repayment could also harm your credit score.


• Typically, you’ll need a good credit score to be considered for this type of credit card.

Does cashback mean free money?

Not quite. You’ll still need to use your credit card to earn cashback, and, as we mentioned, the amount of cashback you earn could be lower than any interest you’re charged. You can avoid paying interest by clearing your balance in full every month.

Does thimbl offer a cashback credit card?

thimbl doesn’t offer a cashback credit card, but we do offer a credit builder credit card and a balance transfer credit card.

Looking to improve your credit score? The thimbl Credit Builder Credit Card could help.

The thimbl Credit Builder Credit Card

• Could be suitable: if you’re working to improve your credit score.


• How it works: use the thimbl Credit Builder Credit Card to make a necessary and affordable purchase. Pay at least the minimum repayment due on time each month and if you’re able to, make more than the minimum amount. If you clear your balance in full every month, you won’t be charged interest. Your repayment history will be shared with the credit reference agencies and with positive management, you could see an improvement in your credit score over time.


• Good to know: practise other credit building techniques alongside using your thimbl credit card. This could include registering to vote, checking the information on your credit report is up to date, and paying all bills and any other credit commitments on time.


• Starting credit limit: between £200 and £2,000.


• 48.9% APR Representative (variable)

Are you in the process of clearing the balance of one or more credit cards? You could save money on interest with the thimbl Balance Transfer Credit Card.

The thimbl Balance Transfer Credit Card

• Could be suitable: if you’re paying interest on one or more credit cards.


• How it works: transfer the balance of one or more existing credit cards onto the thimbl Balance Transfer Credit Card and pay no interest for 6 months. Make at least the minimum repayment on time each month.


• Starting credit limit: between £500 and £2,000.


• Good to know: you’ll be charged a fee of £3 or 3% of the transferred balance, whichever is higher. The 0% interest promotion does not include purchases. Once the 0% interest period ends, any balance on your account will be charged interest at your credit card’s standard rate. The rate of interest you’re offered will depend on your credit history and affordability.


• Representative example: Assumed borrowing of £1,200 for 1 year, at a purchase rate of 39.9% (variable), Representative 39.9% APR (variable). 3% balance transfer fee (or £3, whichever is higher)

The thimbl eligibility criteria

thimbl is a credit broker. The thimbl credit card is powered by Zable, a trading name of Lendable Ltd.

You can check your eligibility for a thimbl credit card if you:

• are aged between 18 and 75
• are a UK resident with at least 1 year’s UK address history
• have a UK bank account with a valid debit card
• have a regular income of at least £800 a month after tax and deductions, paid into your bank account
• have had a credit account (such as a credit card, loan or mobile phone contract) open for at least 4 months
• don’t already have a Zable credit card
• aren’t currently bankrupt, in an IVA or debt management plan, or otherwise restricted from applying for credit

Checking your eligibility won’t affect your credit score.
If you choose to complete a full application, Zable will do a full credit check (creditworthiness assessment), which may affect your score for a short time. Zable may also ask you to connect your bank account using Open Banking, or upload your payslips or bank statements, to confirm your income.

I can’t afford to make my credit card repayments; what should I do?

If you’re struggling to keep on top of your repayments, you should contact your credit card provider. The sooner they’re aware of your situation, the sooner they can work with you.

Are you worried about money and debt?

You can get free, impartial money management and debt advice through a number of charities and organisations, including:

• StepChange
• MoneyHelper
• Citizens Advice
• National Debtline.

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