The Best Cashback Credit Cards for People with Low Credit
These days every man and his dog are offering credit cards with a cashback facility. Trouble is, if you are one of those people whose credit rating is not up to scratch, you could miss out on some great deals. Luckily there are a few options left open to people that have a less than perfect credit rating and give good cashback rates too. Here are our pick of the bunch for this month:
The Aqua Reward card gives you whopping 3% cashback on all purchases, however, this is limited to a total mount of £100 of cashback a year. Although this amount of cashback is relatively low, Aqua are designed to accept people with a poor credit rating, so you are more likely to be offered one of these cards, if you have a low credit score. And the 3% is one of the highest rates for people with a less than great credit score. It does mean however, that there is no point in you spending more than £300 a month, (£3,333 per year) as the most you will get back is the £100 annually. That’s the highest long-term cashback rate we’ve ever seen. Aqua does have a high APR of 34.9% but you can avoid paying these high charges if you pay off your balance in full each month. It has another great feature which is that it is one of the best cards to use abroad as it does not charge you for spending when you are out of the country.
If you think you might not be accepted for the Aqua Credit Card, the Capital One Classic Extra is a good alternative. It too is designed for people with poor credit and although the cashback amount is not as high as the Aqua card, at 0.5% cashback, there are no limits on the amount of cashback you can earn. Another plus point is that the Capital One Classic Extra is more likely to accept you than Aqua and you if you consistently pay up on time, you’ll receive a £10 annual bonus. Their APR rate is the same as the Aqua card, but remember, if you pay your balance in full each month you will not incur the interest. This is a limited time only offer so you’ll have to be quick if you want to take advantage of it.
For those who have a little better rating on their credit score, you could try the Capital One Aspire Credit card, which pays 5% for the first 99 days (£100 limit) and up to 1.25% afterwards. And if you are one of those lucky people who are spending more than £4,000 a year, have a look at the Amex Platinum (also 5% for 3 months, £100 limit and 1.25% cashback after but with a £25 fee). You’ll need a good credit rating for both cards and, as a guide, an income of at least £20,000.