Cheddar Instant Cashback App Review (Pros & Cons Revealed)

If you regularly shop at well-known retailers, the idea of getting cashback on purchases you were already planning to make sounds very appealing. That is exactly what Cheddar promises.

Unlike traditional cashback sites that require you to click through affiliate links and wait weeks or even months for your rewards, Cheddar takes a different approach. It claims to offer instant cashback when you buy digital gift cards through the app.

But does it really work? And more importantly, is it worth using?

In this Cheddar Instant Cashback app review, I'll explain exactly how it works, how you can earn, how you get paid, and the drawbacks you should know before deciding whether to join.

What is Cheddar, and what does it offer?

Cheddar is a UK-based cashback app that lets users earn cashback rewards even before paying. And yes, it is legit because you can really earn cashback rewards from it.

However, that doesn’t necessarily mean it is the right cashback app for you. To find out if you should use it, you must first understand how it works. The best way to do so is to take a closer look at the earning opportunity it offers, so you will have a clear understanding of its potential.

So, here’s how to earn from Cheddar.

The earning opportunity – Buying gift cards

When Cheddar first started, you could earn cashback rewards by linking your credit/debit card and using it to pay for purchases from partner retailers. However, as it now stands, this option is no longer available. Instead, the way to earn cashback rewards is by buying gift cards.

It is both convenient and risky, and let me explain why.

First, it is convenient because when you buy the gift card, you’ll automatically receive the cashback reward even if you haven’t used the gift card for payment yet.

It’s also risky because if you wish to return the product you bought, there’s a chance you won’t get refunded. The website’s terms state that gift card purchases are final once sold. If you want to return or cancel your purchase, they will try to negotiate with the retailer who issued the gift card to see if they can grant a refund.

If the retailer rejects the request, Cheddar can’t offer a refund. So, the way I see it, the best way to use the gift cards you buy from Cheddar is for purchases you don’t plan to return. In other words, you should only use it for planned spending like groceries, buying coffee, etc.

If you want to buy gadgets or electronics, there’s a higher chance you'll return them after purchase, so it’s best to avoid using gift cards to pay for them.

Now, let me explain how the earning opportunity works. As mentioned above, you’ll have to buy a gift card to earn the cashback reward. When you log in to the app, you can see all the retailers where you can buy gift cards.

Simply choose the gift card you want to buy, add the denomination, and buy it. Then, you’ll receive the cashback reward immediately, and it will be credited to your Cheddar cashback balance.

Now, you must use the gift card to pay for the purchase you made from the retailer. Partner retailers can scan the gift card during checkout. That’s how the payment will be done.

Take note that you can’t add cash on top of the gift card, so you must select an amount that is enough to cover the purchase you make. Any leftover balance from the gift card can be used for your next purchase from the retailer.

For example, if you bought groceries from Tesco that are worth £98, you must buy a Tesco gift card worth £100 to cover the cost. The remaining £2 can be added to your next gift card purchase from that retailer. So, it essentially acts as a prepaid card you can use for purchases.

You can also use the gift card for online purchases. You just have to enter the code on the gift card's barcode. It is an easy process, but as explained, it is best used for planned spending, so you won’t waste any excess balance from the gift cards you purchase.

Now, in terms of the number of partner retailers it has, from what I observed while exploring their platform, more than 100 brands have partnered with them, so you will most likely find one you can shop from.

Most of them are also popular retailers in the UK, which is a good thing, in my opinion.

Recommended: Check Out the Best Cashback Apps

How do you get paid?

As explained above, you’ll earn cashback rewards immediately when buying gift cards. The rewards will be stored in your Cheddar cashback balance. But how will you be able to cash out your rewards?

Well, the good news is that Cheddar offers a very convenient payout method, and that is via bank transfer. Once you’ve earned at least £5, you can withdraw your earnings directly to your bank account.

The best part is that there won’t be service fees involved when you withdraw your earnings. So, you’ll get the full amount every time.

Overall, I would say its payout method is quite convenient. I like the fact that you can withdraw your earnings without fees directly to your bank account.

If you are interested in more sites that use a convenient payout system, I suggest you also check out the top sites that pay via direct bank transfer.

How much money can you make?

The amount you can earn back from Cheddar will mostly depend on your spending habits. As mentioned earlier, it has partnered with more than 100 brands, so there won’t be a shortage of stores to shop from.

As for the cashback rates it offers, I would say it’s relatively decent. Most cashback rates range from 5% to 7% (some offer more), which is not that high, but also not that low.

In my opinion, if you make a lot of purchases at supermarkets, you can benefit more from this app, because that’s the safest option, since you won’t encounter many instances of having to return the items you bought.

Overall, I would say its earning potential is quite decent, and a bit higher if you shop regularly from any of their partner retailers.

Can you use it on a desktop?

Cheddar is a mobile-only platform, which is to be expected, since you really need access to it when you are out shopping. As for the app, it runs on both Android and iOS devices, so compatibility won’t be a problem.

The app is also very easy to use because the user interface is quite intuitive. So, the user experience it provides is quite good, which is all you really want from an app like this, in my opinion.

Who can join Cheddar?

Now, here’s the most important thing you need to know about Cheddar. It is only available in the UK. So, if you live somewhere else, this is not for you.

To sign up as a member, you’ll have to install the app first. Then you can quickly complete the registration process the first time you open the app. During the registration process, you’ll have to provide your mobile number for account verification.

After you have verified your registration, you can log in to the app. Now, the next step is to link your bank account.

Cheddar uses Open Banking, so you'll select your bank from the list of supported providers and authorize the connection through your banking app or online banking. The app will guide you through the authorization process.

Once you are done with this step, you can start buying gift cards to earn cashback rewards.

Can you get support?

Cheddar has an FAQ section you can check out if you have questions about the app. It only discusses some of the basic topics you need to know.

If you can’t find the answers you need, you can contact its support team instead. You can use the contact form on the website or email your concerns directly to support@cheddar.me.

Overall, I would say it provides decent support to its members, as it offers a couple of easy ways to ask for help.

Final Verdict

Cheddar is a legit cashback app that lets you earn rewards by buying gift cards. It has some decent features, but it also has limitations you need to consider.

Let me end this review with a summary of its pros and cons, so you can clearly see an overview of its features. Then you can decide whether to install it or not.

In my opinion, Cheddar is a decent cashback app, especially if you don’t mind using gift cards to pay for purchases. Its biggest upside is that you’ll immediately receive the cashback reward when you buy a gift card.

Its biggest downside is that getting refunds when you use gift cards to pay for purchases can be quite challenging. So, it is only ideal for shopping for items that you will have a very small chance of returning. If that fits your shopping habits, then this can be a great way to earn cashback rewards.

If you prefer the more common way to earn cashback rewards, this is not for you. You should then check out the best cashback sites instead.

If you have any comments, questions, or experiences with Cheddar Instant Cashback yourself, I would love to hear from you in a comment below.