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.
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:
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, CommBank Rewards offers personalised cashback promotions to people with an eligible Commonwealth Bank credit card or debit card. And people with a Westpac credit card can get cashback offers through Westpac Extras.
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:
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:
If a credit card has an introductory cashback offer, make sure you understand the spend criteria before applying.
For example, if a card offered $200 cashback when you spend $3,000 on eligible purchases in the first 3 months, make sure that's realistic before you apply.
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.
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.
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.
The potential value of a cashback rewards card depends on the amount of cash or credit offered, the cost of the card and how often you use it. Let's say you get a credit card that offers 1% cashback on everyday purchases and has a $150 annual fee.
If you spent $3,000 per month on this card:
You would earn $30 cash back per month, or $360 per year. If you take the cost of the annual fee out, you would get $210 value from cash back rewards over that year.
But if you only spent $1,000 per month on this card:
You would earn $120 cash back in a year. That is $30 less than the $150 annual fee in this scenario, so you would be spending more on the card than what you earned from cash back rewards. This doesn't necessarily mean that the card isn't valuable, but you'd have to make sure you get at least $30 worth of value from the other features.
The bottom line? The value you get from any credit card offer depends on your personal spending habits and card preferences.
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. 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.
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.
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.
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
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.
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Could you help me narrow my search? Is there any credit cards at all I can qualify for whilst bankrupt
Hi Corey,
Thanks for leaving a question on Finder.
Payment defaults and bankruptcy are among the items on your credit report that could seriously hurt a credit card application. Instead of going down that route, perhaps a wiser move would be to consider your other credit options. Here are some alternatives you may find helpful:
Please send me a message if you need anything else and I hope you get through this difficult time.
Cheers,
Joel
Hi. I would like to be approved for a credit card but l have always been denied. l am a Centrelink recipient. Please let me know if I eligible for any low rate credit card with no annual fees?
Hello Marissa,
Thank you for your comment.
Low-rate credit card eligibility for pensioners depends on whether you meet the application requirements. Generally, the bank will request a specific minimum income per year. If your primary form of income is through Centrelink benefits, contacting the bank to determine whether Centrelink qualifies as a form of income would be ideal.
You may refer to our list of credit card designed for pensioners. Our page has a table with the list of providers who consider Centrelink payments as an income. Click the name of the provider to see more details about the feature of the credit card. When you are ready, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Please make sure though to read the eligibility criteria, features, and details of the card, as well as the relevant PDS/ T&Cs of the card before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chatbox on the lower right corner of our page.
Regards,
Jhezelyn
Did i get approved?
Hi Ejay,
Thanks for contacting Finder.
For the status of your application, you may get in touch with the bank directly. You may also check our guide about checking credit card applications.
I hope this helps.
Sharon
Can i transfer several card balances of under $5 each onto to 1 of these single prepaid woolworths money cards plz?
Hi Nat,
Thanks for your question.
This will depend on whether all of these cards are yours or not. It might be best to get in contact with Woolworths directly to see if this will be possible with your account.
Thanks,
Elizabeth
How do I redeem money for cash back? I paid for my PC on my Westpac credit card.
Hi, Ann.
I’m not sure I understand the question. Can you please elaborate on what you’re looking for and the product you used to make the purchase. ‘
Thanks for your question.