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What if using a credit card in a savvy way could actually work in your favour to get money back in your pocket?
At one time or another, we’ve probably all been the recipient of a stern lecture about how money doesn’t grow on trees, and nothing comes for free. It’s fair, therefore, to be a bit sceptical when you see a credit card company offering you cash in exchange for your purchases on a certain card. Surely the offer is too good to be true, and there’s some kind of a catch? This can certainly be the case, but if used carefully, sometimes these kinds of cards can be rewarding.
Can you get cash back for spending on a credit card?
A cashback credit card is a particular type of card that offers you rewards for spending. Contrary to what the name might suggest, these rewards do not always come directly in the form of cash back. No matter the type of card, you will never get cash back for ‘free’ – these offers all require some kind of spend in order to reap the benefits and can come with annual fees you will need to consider.
That said, if you are the type to use your credit card responsibly – spending on what you need and paying the balance off at the end of each statement period – then a credit card with a cashback offer could be a way for you to reap some rewards for your spending. There are still some important limitations to keep in mind, though.
So how do cashback credit cards actually work?
One important thing to know about cashback credit cards is that you are unlikely to immediately get cash back at the register when you spend. Some cards may offer cash back as a percentage of your spend during each statement period, but in general, there are two main ways that cashback is given: bonus offers and reward points.
A survey of rewards credit cards on Canstar’s database reveals that many of the top-rated cards offer a cashback bonus to you for spending a certain amount in a specific time – typically, these cards will offer you between $100 and $300 back if you spend over a certain threshold in the months after signing up. And sometimes the card provider will have the added condition of your spending being at selected places such as certain supermarkets or petrol stations, meaning you might choose to pay for your groceries or fuel with the credit card to be eligible for the cashback bonus.
There are also credit cards that offer ongoing cashback rewards. Generally speaking, these cards will allow you to earn a certain number of reward points per dollar spent on eligible purchases during your statement period. At the end of the statement period, these points may be used to lower the balance of your credit card, or converted to funds in an eligible bank account.
Do cashback credit cards actually give you value for money?
If you’re thinking about signing up for a cashback rewards card, then the ultimate question to ask is whether the rewards you’ll get out of it will be greater than what you spend to get those rewards.If you are the type to pay the balance each month, and you do not accrue interest on your purchases, then you may see the benefits of a cashback rewards program.
One important thing to think about is the annual fee – say hypothetically that a card gives you $100 cashback on signup, but the annual fee is $40, then the bonus cashback will have cancelled itself out within a few years of owning the card.
Likewise, say that a hypothetical cashback card gives you $250 back on the condition that you make $500 worth of eligible purchases within a certain period after signing up. If you need to make $500 worth of purchases, and are able to pay off your balance without accruing interest, then this cashback could be a nice bonus for you.
On the other hand, if you make unnecessary purchases and get into unneeded debt just to claim the cashback, and if you end up carrying a balance on your card and paying interest on your purchases, then the cashback will likely not be worth what you spent to get it.
- 0% interest on general purchases in first 9 months when approved by 12 Jan 2026. T&Cs, annual card fee & other charges apply. Excludes other offers. New customers only
Australian Credit Licence 392145
- Save with a 0% p.a. interest rate on balance transfers for 20 months (with a 3% balance transfer fee). Plus, a low 13.74% p.a. purchase interest rate.
Australian Credit Licence 233714
- 0% p.a. for 10 months on balance transfers (1% fee)
- Award winning no annual fee rewards credit card
- Complimentary FIRST membership valued at $129/year
Australian Credit Licence 230686
- $0 annual fee 1st year (normally $96) & earn up to $500 in Latitude Rewards in yr 1. Min spend on eligible purchases applies. New approved customers by 26 Feb 2026
Australian Credit Licence 392145
- Earn up to 130,000 bonus More Rewards points.
- 2 points per dollar on eligible purchases.
- Ltd time, other fees, T&Cs apply.
Australian Credit Licence 234945
- $300 credit back. Spend $1.5K+ p/m on general purchases in 1st 4 months. T&Cs, mthly credit card fee $10.95 & other charges apply, new customers approved by 17Feb26
Australian Credit Licence 392145
Australian Credit Licence 244310
Australian Credit Licence 392145
Australian Credit Licence 392145
Australian Credit Licence 392145
Australian Credit Licence 392145
Cover image source: Dean Drobot/Shutterstock.com
