Cashback credit cards

A cashback credit card gives you money back on your statement or vouchers for your spending. This gives you more flexibility compared to earning reward points, because you can use cash on just about anything.

In Australia, most cashback credit cards offer a one-time bonus of credit back to your statement when you meet a certain spend requirement.

• Methodology: How we chose these cashback cards

  To determine Finder's pick of cashback offers, we examine over 250 cards in our database. We narrow it down to with introductory cashback offers or ongoing cashback, and consider whether or not the cards are available through Finder. The other key factors we consider are:

  • The amount of cashback offered (the more cashback, the higher the ranking)
  • Cashback spend requirements
  • The annual fee
  • Whether it offers points per $1 on eligible spending
  • The terms for interest-free days on purchases
  • The interest rate for purchases

  Keep in mind: Our top picks may not always be best for you. Based on your situation, you may find certain features to be more or less important, so compare your options before you apply.

Types of cashback credit card offers

A cashback credit card gives you rewards in the form of dollars, credit on your account or vouchers. These offers vary between cards, with some earning cashback instead of rewards points per $1 spent and others providing a one-time cashback reward offer for new customers. We've outlined the three main ways you can get cash back below:

1. Cashback per $1 when you make an eligible purchase. For example, if you make a $1,000 purchase on a credit card that offers 2% cashback, you would get $20 back from the credit card provider.
2. Promotional offers on sign-up. Some cards have a cashback promotion for new customers. These offers usually require you to apply before a set date and spend a specific amount in the first few months that you have the card. With these offers, the cash back could be in the form of credit to your account, a voucher or a gift card you can spend at select locations.
3. Rewards points you can use to get cash back. If your credit card earns points per $1 spent, you could redeem them for credit back to your account or gift cards. Most rewards credit cards give you one or both of these options, along with other rewards such as flights or merchandise.

Some credit cards also offer cashback promotions to existing cardholders when they spend with partnered brands – even if you don't have an actual rewards credit card.

For example, the CommBank Yello Cashback Offers program gives people with an eligible Commonwealth Bank credit card or debit card access to cashback offers through the CommBank app. And people with a Westpac credit card can get cashback offers through Westpac Extras.

The pros and cons

If you're thinking about getting a cashback credit card, weighing up the following pros and cons can help you decide if it's worth it for you:

Cashback cards provide a tangible advantage by effectively replenishing your wallet. However, it's crucial to avoid overspending just to chase rewards. The true art here is striking a delicate balance – reaping cashback benefits while maintaining responsible spending practices.

Graham Cooke
Head of consumer research, Finder

How can I compare cashback credit cards?

As with all credit cards, make sure you compare and understand the rates, fees and standard features. If you are interested in getting a credit card with cash back rewards, here are some other specific details to compare:

• Introductory offer requirements

  If a credit card has an introductory cashback offer, make sure you understand the spend criteria before applying.

  For example, if a card offers $200 cashback when you spend $3,000 on eligible purchases in the first 3 months, make sure that's realistic before you apply.

• The cashback amount

  Look at the value of the cash rewards you'll collect versus the card's overall cost. If the value of the cashback isn't worth it, you might find a $0 annual fee or an interest free credit card with a 0% purchase rate offer more suitable for you.

• Reward limits

  Some cashback cards have a limit on how much value you can get back. For example, you might be able to get 1% cashback but have a limit of $30 back per month. If you often spend more than $3,000 per month, you're not going to be able to maximise your rewards with that card.

• Rewards value

  If you have a rewards credit card that offers cash back and other types of rewards (such as flights, travel upgrades or merchandise), you can check to see if there are rewards that have a higher retail or regular price value than the cashback amount.

Frequently asked questions

• What is the difference between a rewards credit card and a cashback credit card?

  A cashback credit card offers you rewards in the form of statement credits or vouchers when you meet a spend requirement, or for ongoing eligible spending. Sometimes, you can get a cashback offer on a credit card with ongoing low rates and low or $0 annual fees that aren't typically available with cards that offer ongoing rewards.

  Standard rewards credit cards offer points for each $1 of eligible spending, which you can redeem for travel, retail items, gift cards, cashback and more.

• How much cash can I expect to get back when I spend?

  You can typically get between $30 and $600 from an introductory cashback offer when you meet the spend requirements. For credit cards that offer ongoing cashback, it's usually between 0.5% and 1% of each eligible transaction.

  While these are 2 of the most common types of cashback on credit cards, there are sometimes other promotions that could offer different amounts. For example, a card that has personalised cashback offers with retail partners could offer you $10 back when you spend $30 with the retailer.

• Can I use cashback to pay the annual fee or my credit card debt?

  Yes, you can generally use cashback rewards to pay your card's annual fee or the outstanding balance of a credit card if you redeem it through a rewards program. But if you get cashback as a credit on your account, you usually still need to make a minimum payment on your account by the statement due date to avoid late payment fees.

• Who can apply for a cashback credit card? And how do I apply?

  Anyone who meets the eligibility requirements for a cashback credit card can apply. These requirements vary between cards, but you can usually expect the following:

  Eligibility requirements

  • Age. You need to be at least 18 years old to apply for a credit card in Australia.
  • Residency status. Most lenders require you to be a permanent Australian resident or citizen, though some do offer products to specific visa holders.
  • Income requirements. Some cards list a minimum income amount that you need to earn before you can apply, others require you to earn a regular income. There are also cards that don't list an income requirement – but even then you'll need to include details about your money when you apply.

  Credit card eligibility requirements are usually listed on individual card pages, as well as at the start of an online application. Make sure you read them before you apply to help save you time.

  How to apply

  You can apply online in around 10-20 minutes. Before applying, make sure you meet the eligibility requirements and have the necessary documents needed to complete your application. You'll need to provide proof of identification, proof of income and some additional information about your finances.

  Once you have completed and submitted your application, you'll usually receive a response from the credit card provider within 60 seconds. If you're approved, you'll receive your card in the mail within 1-2 weeks.

Why you can trust Finder's credit card experts

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Unlike other comparison sites, we're not owned by a bank or lender. That means our opinions are our own and you can compare nearly every credit card in Australia on Finder.

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