1. Flat-Rate Cashback Credit Cards

Flat-rate cashback cards are one of the simplest and most popular types of cashback credit cards. These cards pay the same cashback percentage on every purchase regardless of what you buy.

For example, if a credit card offers 1% cashback on all spending, every £100 spent returns £1 in cashback. Whether the purchase is groceries, petrol, clothing, online shopping, or travel, the same percentage applies.

Many people prefer flat-rate cashback cards because they are easy to understand and easy to manage. There is no need to remember different categories or worry about where you are spending your money.

This type of card works particularly well for everyday spending because most people use their credit cards for a wide range of purchases throughout the month. Instead of trying to maximise rewards in specific categories, users simply earn cashback on everything they buy.

Another advantage is that flat-rate cashback cards often come with fewer restrictions compared to other reward cards. There are usually no complicated spending targets, rotating reward categories, or special activation requirements.

However, the cashback percentage on these cards is often slightly lower than on category-based cards. Many flat-rate cards offer around 0.25% to 1% cashback on everyday spending.

Even with lower percentages, flat-rate cards can still provide steady rewards over time. For example, someone who spends £1,500 per month on a credit card could earn around £180 per year with a 1% cashback card.

Because the rewards are simple and predictable, flat-rate cashback cards are often considered the best option for people who want to earn cashback without tracking complicated reward systems.