While some cards reward you with points, this type of credit card gives you cash rewards for your spend. There are a few different types of cashback offers available on the Australian market, with some cards offering introductory cashback promotions and others earning cash as a percentage of your spending. Some rewards credit cards also let you get cash back in the form of gift cards or account credit. You can use this guide to compare cashback credit card options, learn how they work and discover how you can get the most value out of this type of credit card.
The finder.com.au list of cashback credit cards
Compare the features of the cashback credit cards below.
ANZ Frequent Flyer Black: Offers $275 cashback when you spend $4,000 on eligible purchases within the first 3 months from card approval.
BOQ Blue Visa Credit Card: Receive $120 cashback to your account when you spend $500 on retail purchases per month for each of the first 3 months from account opening.
ING Orange One Platinum: Get 1% cashback on all eligible spending up to $30 each month, with a maximum cashback potential of $360 per year.
Virgin Money Low Rate Credit Card: Receive 10% cashback (capped at $100) when you make an eligible purchase within 3 months of card approval.
How do cashback cards work?
A cashback credit card gives you rewards in the form of dollars or credit on your account. These offers vary between cards, with some earning cashback rewards as part of an ongoing rewards program and others providing a one-time cashback reward offer for new customers. We've outlined the three main ways you can get cashback rewards from your credit card below:
Cashback when you make an eligible credit card purchase. If you make a credit card purchase of $1,000 and there is a 2% cashback promotion, the credit card provider will give you $20 back.
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 within the first few months that you have the card.
Cashback via a credit card rewards program. As well as using points for flights or merchandise, some credit card rewards programs give you the option to redeem your points for cash. You can also redeem your reward or frequent flyer points for gift cards, which could come in handy if you'd prefer a cash reward over a flight or product.
Is there a catch?
Just like other rewards credit cards, you need to meet the spending requirements or eligibility requirements to get a cashback reward from a credit card. For example, you might only get money back for "eligible purchases", with common exclusions including cash advances, balance transfers and refunded purchases. Some cashback credit cards may also cap or limit the amount of money you can earn per month or year. Make sure you read the card's product disclosure statement for more information.
How can I compare cashback credit cards?
If you want to find the right cashback credit card for you, here are the key details to look at when you're comparing different options:
The cashback amount. Weigh up the value of the cash you'll get back based on your spending habits and the overall cost of the card (such as the annual fee and purchase rate). This will help you decide if the rewards are worth it.
Reward caps. Some cashback cards limit the amount of money you can get from them. For example, you might be able to get 1% cashback per $1 spent but have a limit of up to $20 per month.
Introductory offer requirements. If a credit card offers cashback as a special promotion, make sure you understand the terms and conditions before signing up. Depending on the offer, you may want to look for the date the offer expires, spending requirements or participating retailers to take advantage of the cashback reward.
Ineligible transactions. While most everyday purchases are eligible to earn cashback rewards, transactions such as cash advances, bill payments, gambling transactions and credit card fees are usually ineligible. Check these details before you get a card to decide if it suits your spending habits.
Rewards value. If you have a card that earns points and want to redeem them for a cashback reward, check to see if there are other rewards (such as flights, travel upgrades or merchandise) that have a retail or regular price value that is higher than the cashback amount. This will help you get the most value out of your rewards.
Other card features. Make sure you also consider the card's standard variable purchase rate as well as any additional charges, fees and complimentary extras. Along with the rewards and annual fee, these features will help you decide if the card suits all your needs.
What are the advantages and drawbacks of cashback credit cards?
Weighing up some of the pros and cons could help you determine whether a cashback credit card is right for you:
Advantages
Money in your pocket. This type of reward offer gives you the chance to get money back for paying with plastic.
Dollar value. Instead of earning points per dollar spent, cashback credit cards offer a straightforward dollar value for the rewards you earn.
Other extra features. Credit cards with cashback promotions may offer other features such as complimentary travel insurance, rewards programs and concierge services.
Drawbacks
High annual fees. Credit cards with cashback rewards charge a higher annual fee than no-frills credit cards. Ideally, the value you get back from the rewards should be higher than the annual fee.
Interest rates. If the cashback offer is a feature of a more premium product, you may find that it comes with higher interest rates. Make sure you can repay the amount you've charged for the cashback (as well as other purchases) before the end of the statement period.
Limited rewards. Some cashback credit cards may have a cap on the number of times you can redeem a cashback offer. For example, some may only allow you to receive the cashback once, while others may allow you to take advantage of it up to a capped amount of times in a set period.
How to apply for a cashback credit card
If you've decided you want a cashback credit card, you can apply online in around 10-15 minutes through a secure web service. Before you apply, make sure you meet the eligibility requirements and have the necessary documents needed to complete your application. These will vary from card to card, but you can usually expect the following:
Eligibility requirements
Age. Cardholders must be at least 18 years of age.
Residential status. Most credit cards require cardholders to be permanent Australian residents, though some do offer products to specific visa holders.
Minimum income. The minimum income requirement will vary between cards, but they usually start at $15,000 p.a. for low-income cards and between $60,000 and $100,000 for higher-tier products.
Documents and details
Proof of identification. You'll need to provide a copy of your driver's licence, Medicare card and/or passport for proof of identification.
Proof of income. You'll need to provide your employer's details as well as a recent tax return and/or your pay slips. If you're self-employed, you'll need to include your accountant's details.
Financial information. You will need to provide other information about your finances including debts, liabilities and expenses.
Once you've provided all of this information and hit "submit", you should receive a response regarding your application within 60 seconds. If you're approved, you'll receive your card in the mail within 1-2 weeks. If the card has a cashback offer, you should read the product disclosure statement to confirm the terms and conditions and when you can expect to receive the cashback credit in your account.
If you're looking for a new credit card, one that offers cashback gives you extra value for your spending. But even though cashback offers can be rewarding, they also come with terms and conditions, so make sure you understand what these are and compare your options before you apply for the card.
Pictures: Shutterstock
Popular questions about using cashback credit cards
While the cashback rate varies from product to product, most cashback returns are somewhere between 1-2% of the total value of the transaction. This figure can jump when you look at merchant and retailer bonus cashback rewards schemes or when a fixed rate of cashback is offered (such as $20 or $50 when you first use the card).
Yes, you can generally use cashback rewards to pay your card's annual fee or the outstanding balance of a credit card.
We include the relevant information about cashback and rewards points capping on our review and application pages. If you're interested in a specific cashback credit card or rewards program, you should also read through the product disclosure statement provided by the credit card issuer. This will outline the full terms and conditions of the offer or rewards program.
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:
– Personal loans. Some providers may be willing to lend you money despite your bad credit history.
– Cash advance loans. Also known as payday loans or bad credit loans, these are short-term loans of up to $2,000 with fixed fees.
– Bank overdrafts. You may be able to get a personal overdraft from the bank because of your long banking history with them.
– Debit card. Using a debit card instead of a credit card will ensure that you only spend money you have, which can help you work your way out of debt.
– Low income credit card. If you meet the low income requirement, you could consider applying for a low income credit card with lower fees and interest rates. A credit check would still apply in most cases though.
– Joint account credit card. Another way to get a credit card would be to apply for a joint account credit card with someone that has good credit history. They would be the primary applicant, but you could share their account.
Please send me a message if you need anything else and I hope you get through this difficult time.
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?
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.
The credit cards listed on this page are designed for pensioners and it 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.
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 chat box on the lower right corner of our page.
Please note that you have reached finder.com.au, an online comparison service, and is not directly connected with any credit card issuer. For the status of your application, you may get in touch with the bank directly. You may also check our review on how to check on your credit card application.
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.
* The credit card offers compared on this page are chosen from a range of credit
cards finder.com.au has access to track details from and is not representative
of all the products available in the market. Products are displayed in no particular
order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are
subject to our disclaimer.
You should consider seeking independent financial advice and consider your own
personal financial circumstances when comparing cards.
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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:
– Personal loans. Some providers may be willing to lend you money despite your bad credit history.
– Cash advance loans. Also known as payday loans or bad credit loans, these are short-term loans of up to $2,000 with fixed fees.
– Bank overdrafts. You may be able to get a personal overdraft from the bank because of your long banking history with them.
– Debit card. Using a debit card instead of a credit card will ensure that you only spend money you have, which can help you work your way out of debt.
– Low income credit card. If you meet the low income requirement, you could consider applying for a low income credit card with lower fees and interest rates. A credit check would still apply in most cases though.
– Joint account credit card. Another way to get a credit card would be to apply for a joint account credit card with someone that has good credit history. They would be the primary applicant, but you could share their account.
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.
The credit cards listed on this page are designed for pensioners and it 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.
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 chat box on the lower right corner of our page.
Regards,
Jhezelyn
Did i get approved?
Hi Ejay,
Thanks for your inquiry.
Please note that you have reached finder.com.au, an online comparison service, and is not directly connected with any credit card issuer. For the status of your application, you may get in touch with the bank directly. You may also check our review on how to check on your credit card application.
I hops 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.