Credit cards have encountered considerable negative publicity recently with reports of accounts being closed and credit limits be reduced, however there are still some worthwhile incentives being offered, and for those with good credit ratings who repay their entire balances each month, they are worth considering.

David Black, principal consultant – banking at researcher Defaqto said: “There are a variety of reward based credit card schemes and these include points schemes, air miles and cashbacks. Some of them can be very difficult to compare and, certainly in the case of cashbacks, it’s worth reviewing what’s available on a regular basis, as the best offers often gain that position by virtue of a short-term introductory enhanced rate.

“It’s possible to use different cards for different types of spend to take advantage of the enhanced returns marketed by some credit cards. For motorists, the Shell card is currently a clear market leader.

“If you are unlikely to repay the entire balance every month you should concentrate on the interest charged rather than the rewards offered.”

 Leading cashback cards

Abbey Credit Card: 5% cashback on supermarket spending of up to £1,000 until 31st July 2008 (ie. maximum cashback £50).

Alliance & Leicester Moneyback Rewards Card: 1 point for each £1 spent. 2,000 bonus points are awarded if used in first 3 months. 4,000 points = £20 shopping voucher (effective cashback rate 0.5%) or 5,000 points = £20 cash (effective cashback rate 0.4%).

American Express Platinum MoneyBack Card: 5% cashback in first 3 months on up to £4,000 spend. 0.5% on first £3,500 in year; 1% on spend between £3,501 and £10,000; 1.5% on spend in excess of £10,001.

Bank of Ireland Moneyback Gold / Moneyback Standard: 0.5% cashback on spend up to £15,000 in year.

Barclaycard Platinum Credit Card with Cashback: 1% cashback on supermarket and petrol purchases (subject to a maximum of £15 cash back per month – ie. £1,500 maximum monthly spend) and 0.5% on all other spend (also subject to a maximum of £15 cash back per month – ie. maximum monthly spend £3,000).

Capital One Bank Platinum Card with Bonus Cashback: 1% cashback on all spend.

Shell Card from Citi: 3% rebate on fuel purchases at Shell filling stations and 1% rebate on purchases. Rebate deducted from statement balance if make Shell fuel purchase so card only worth considering for motorists who will use a Shell station each and every month.

Egg Money: 1% cashback on annual spend up to £20,000.

First Trust Bank Option 1 Card: £25 cashback if use card at least 12 times in year and spend at least £5,000. Additional £1 cashback for each additional £200 spend in year (effective cashback rate: 0.5%).

i24 card: 1% cashback on all spend (note this card levies a £275 annual fee).

Leeds Building Society Credit Card: 0.5% on all purchases up to your credit limit each year.

Norwich & Peterborough Credit Card: 0.5% cashback on purchases up to £11,999 in year; 1% cashback on purchases between £12,000 and £25,000. Cashback rounded down to nearest £5 and cashback not paid if less than £10 (ie. must spend at least £2,000 in year).

Smile Classic: 0.50% cashback on all spend.

Tesco Personal Finance Card: 1/12th of interest incurred on card in year refunded.

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