The only credit card on the market right now, that gives cash back to consumers who are trying to rebuild their credit rating, is the new card from Capital One. Only available to new customers, the Capital One Classic Extra Card gives ½ percent cash back on purchases. There is also a £5 bonus when you open the account. The only thing is, that to get the benefits you have to spend a lot of money.
If you spend a whopping £360 a month you will earn £20 in cash back for the year. Your account will be credited annually. Also it is vital that you pay your bills promptly and fully because there is an interest rate of 34.9 percent if you don’t. But this is only to be expected from a credit building card.
To be eligible for the card you must be a minimum of 18 years old, be on the electoral roll and have credit history. You will not necessarily be refused a card if your credit is bad or even if you have County Court judgments against you. The only definite exclusions from getting a card are bankruptcy or if you have never had a credit card or a loan. The minimum credit limit is £200.
There is another option for those who want to rebuild their credit and get rewards. The Barclaycard Initial has an interest rate of 29.9 percent APR and is part of the Barclaycard Freedom programme. With this the customer gets back 1 percent of the price of a purchase in participating retailers.
This is instead of cash back and these rewards can only be earned and spent in the participating retailers but Barclaycard say there are over 30,000. It is possible to earn rewards worth £20 a year by spending £160 a month.