Compare cashback cards by your own spending

The “best” cashback card depends on what you buy and where. A higher advertised percentage can be worth less if your usual merchants are excluded or the monthly cap is small.

Calculate one category at a time

For each card, list the spending that earns rewards at the advertised rate. Multiply eligible spend by that rate, then apply the relevant cap and exclusions. Do this for each category instead of multiplying your total monthly spend by a single headline percentage.

Include the fee and reward form

Subtract the annual fee and taxes from the estimated annual reward. Check whether rewards arrive as statement credit, bank points or a platform balance, and whether the balance has restrictions or expiry. These forms of value may not be interchangeable.

Use the same assumptions for each card

Compare the cards on the same budget and merchant mix. Show the assumed spends, caps and calculations so a reader can reproduce the result. Include a second scenario when another card could win for a different type of spender.

Verify terms before deciding

Banks can change earning rates, caps and eligible merchants. Confirm the issuer’s current terms before applying, and revisit a comparison when a material change happens. A ranking with no assumptions is hard to trust and hard to use.

Pay the statement balance in full. Do not increase borrowing or discretionary spending to earn rewards. This guide is general information, not personalized credit advice.