# What is credit card cashback and rewards?

> Quick answer · Last updated 4 July 2026

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## In short

Perks paying a percentage of spending back as cashback, points or miles — worthwhile only if you pay the statement balance in full every month. Carrying debt at 20%+ APR wipes out rewards within weeks.

Annual fees on premium rewards cards need high spend to break even.

Rewards on foreign spending may incur FX fees unless the card waives them.

See compare credit cards guide.

## Related

- [Compare credit cards](https://moneyguide.org.uk/credit/compare-credit-cards-guide/)
- [Credit card rewards tax](https://moneyguide.org.uk/credit/credit-card-rewards-tax/)

## Primary source

fca.org.uk/consumers/credit-cards

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.