Choosing the Best Credit Card Reward Program

February 11, 2013 by ·

The number of credit card companies competing for business is good news for all consumers in the UK.  There is a wider range of companies offering credit cards and some fantastic deals and rewards programs that can help people to get the most for their money.  There is a wide range of reward programs available with many of the UK’s biggest retailers offering their own programs and credit cards.  Points are earned with each Pound spent and these can be redeemed for vouchers or other rewards.  Cash back cards are also a popular choice and can be a good way of getting more value for the money spent on plastic.

As always you need to be disciplined when using cards to earn rewards.  If you want to get the most value from reward style credit cards the balance needs to be paid off in full each month.  Otherwise any gains from the rewards earned are going to be wiped out by the interest you will have to pay.  If you aren’t sure that you are going to be able to clear the outstanding balance on a card one with a 0% interest rate on balances may be a better option.

Santander 123 Card

This is a cash back card that helps consumers get the most for their money on everyday purchases.  There are a number of features unique to the card and why it is known as the 123:

  • 1% cash back on purchases from major UK supermarkets including Asda, Tesco and Morrison’s
  • 2% cash back from many of the UK’s leading retailers and department stores including Debenhams, Selfridges and BHS
  • 3% cash back from petrol stations.

Up to £300 can be earned through cash back each month and it is a great way to get more for your money on the items you spend most on each month.

Aspire World Card

The Aspire World Card has a great cash back scheme and one of the best introductory offers around.  New customers using the card can earn up to 5% cash back on all their purchases for three months and then 1.25% when the introductory offer finishes.

Tesco Credit Card

Tesco is the UK’s biggest retailer and their card is great for anyone who loves to shop there.  It is an easy way to boost the number of Clubcard points earned when shopping at Tesco and comes with a decent introductory offer of interest free purchases for 16 months.

 

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Credit Card Reward Programs

January 18, 2013 by ·

If you are smart when using your credit card you can start to make it work harder for you and one of the best ways of doing this is choosing a card that offers cash back on your purchases.  If you tend to spend quite a bit on your card each month you can claim a decent sum of money back each month.  In effect it is like having a discount on everything that you buy.

While cash back programs can be a good way of getting a little more for your money they are not suitable for every credit card user.  If the outstanding balance is not paid off fully at the end of each month the amount that is earned through cash back will be far outweighed by interest rate charges.  If you spend a lot of money on your card each month and pay off the outstanding balance in full every month without fail then a cash back credit card could be a good choice.  On the other hand if you aren’t 100% certain that you can pay the balance off then another type of card may suit you better.

Here are some of the best cash back cards at the moment:

Capital One World Master Card

This card has a fantastic introductory offer of 5% cash back on purchases made using it for three months.  So if you were to spend £2,000 on it you could earn £100.  After the introductory period is over the cash back reverts to a little below average rate of 1.25%.  To apply for the Capital One card you will need to be over the age of 18, have a good credit score, own your own home and earn over £20,000 each year.  The APR on the card is a little higher than its competitors at 19.9%

 

Amex Platinum Everyday

This card also comes with the same 5% cash back introductory offer however it is only available to new customers until the 31st of Jan 2013.  APR is also 19.9% and again there is no annual fee.

Cash back cards can be a smart choice if you spend a lot on them and pay them off in full each month.

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Choosing the Best Credit Card Rewards

January 18, 2013 by ·

Sometimes more choice is not such a good thing.  Take credit cards for example.  These days there are hundreds of credit card companies competing for your business with a bewildering array of different deals, offers, rewards and introductory rates.  While it can be hard to find the best deal it is definitely worth finding the time to do it.  Choosing the card that is not quite right for you could cost hundreds of pounds each year that would be much better off in your pocket.

One type of card that has become increasingly popular recently are those that offer cash back on purchases.  At the end of the month you will be entitled to an amount of money depending on how much you spent using the card.  Many companies now offer this type of card and they can help you to get more for your money.

Cash Back Credit Cards

It is worth pointing out that cash back credit cards are not going to be suitable for everyone.  While the idea of getting some money back on your spending is appealing there may be other cards that make more financial sense.  Cash back cards are generally best for people who spend a lot of money on the card and then pay off the outstanding balance at the end of the month.  If the balance is not paid off each month then the interest which will be charged will tend to outweigh any cash back that is earned through using the card.  People will existing balances on their card will generally be better switching to one with a long 0% introductory offer on balance transfers.

 

Best Cash Back Reward Cards

There are a number of points to consider when choosing a cash back credit card.  The introductory and long term offers need to be compared carefully.  Many companies will have a great introductory offer to tempt people in although the long term cash back rates may not be that great.  At the moment one of the best offers around is from Barclays.  Its card has a whopping 6% cash back on the 5 largest purchases made each month for the first three months.  However it does come with an annual fee of £24.

Other cards such as the Capital One MasterCard and the Amex Platinum have good introductory offers as well with both of them offering 5% cash back for the first three months.

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Best Reward Credit Cards

January 18, 2013 by ·

Choosing a credit card is harder than ever these days given the huge number of different companies and offers it is possible to choose from.  While most people tend to go for the best balance transfer deals or lowest introductory APR there are cards that have other benefits.  Many credit card companies now offer special bonus schemes and rewards to their customers to encourage them to take out their cards.  These schemes can include cash back on purchase made using the card, air miles or some other type of reward such as Nectar points.  If you regularly use your card for most of your purchases these cards can be a good alternative even if they have a slightly higher rate of APR than other cards on the market.

Some of the credit cards offering rewards to their customers include:

Tesco Clubcard Credit Card

Tesco is without doubt the biggest name in retailing in the UK with nearly £1 in 7 being spent in its stores by UK consumers.  The Clubcard is Tesco’s way of rewarding its customers and the Tesco credit card means that even more points can be earned while using it.

You can earn Clubcard points each time that you shop in any one of Tesco’s stores throughout the UK.  The main attraction of the Tesco credit card is that it is possible to greatly increase the number of points earned.  Points can be redeemed against a number of different rewards including voucher for popular restaurants, flights, vouchers for Tesco and other leading brand names.

The Tesco credit card has an introductory offer on balance transfers of 0% for 9 months as well as 0% on purchases for sixteen months.  The 2.9% handling fee for balance transfers is about standard and the APR is 16.9% which compares well with many cards available at the present time.

Other features of the card include a complete set of security features designed to protect you from fraud and misuse.  Free online bank is given as standard and unlike many other companies it operates a call centre based in the UK.  To apply for the Tesco credit card you must be 18 or over and have a good credit history.

For regular shoppers at Tesco this card may be a good choice.  The introductory offer is decent and being able to earn more Clubcard points is a big plus point for many people.

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Why Have a Credit Card?

December 19, 2012 by ·

Given the rising levels of debt that most people are dealing with today anyone without a credit card is probably wondering if they are such a good idea. While it can be easy to run up debts using credit cards if they are used sensibly they can actually save you money and offer you more protection when you are making purchases. If the balance is paid off at the end of each month there is no reason not to have a credit card.

Cashback

A number of credit card companies offer cashback schemes on the money that you spend shopping on their cards. This means that it is possible to get more for your money just by changing the way you pay for goods and services. While different companies have different cashback programs typically they range from 1-1.5% of the money spend on the card. If the card is used regularly this amount can soon build up and be a nice bonus once a year.

Improve Your Credit Rating

While running up debts and not making payments on time will affect your credit rating and score having no credit history can be just as damaging when you apply for a loan or mortgage. If you have no credit history potential lenders will not know how much of a credit risk you are. Applying for a credit card and using it sensibly and making the payments on time will start to build up your credit history.

There are a number of credit builder cards designed for people with no credit history and two of the best are available from Barclays and Capital One. The Barclaycard Initial and Capital One Progress are aimed at those who have never had a credit card before. While the APR on them is higher than other cards on the market they are a good way to start to build up some credit history and make it easier to obtain credit in the future.

Credit Card only Transactions

There are a number of instances where using a credit card is the only way to pay for certain goods and services. These include renting a car, reserving hotel accommodation and buying tickets for major sporting and musical events.

While there are a number of risks associated with credit cards if they are used sensibly they can actually save you money and make your life more convenient.

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The Virgin Atlantic Black Credit Card

December 19, 2012 by ·

If you want a credit card with a fantastic rewards program then the Atlantic Black card from Virgin may be for you.  Virgin is one of the biggest names in the travel industry and they have recently begun to offer a range of financial services.  This card offers the best of both worlds as using it regularly can earn you Flying Club miles, free flights and upgrades on Virgin Flights.

Features of the card

One of the unique features of the Atlantic credit card is that you actually receive two credit cards when you apply.  One is from Visa and one is from American Express.  The idea behind this is that having two cards makes it much easier to earn Flying Club miles which can be used for flights and upgrades.

Flight Club miles are earned at a rate of 1 mile for each pound spent using the card and an introductory bonus of 6,000 miles is given when the first purchase is made using the card.  If you spend more than £7,500 on the card in a year complimentary companion reward tickets are available on certain Virgin flights when you purchase a full fair ticket.

The Card

The APR of the card is much higher than most of its competitors at an eye-watering 47.2%.  Unlike most other cards there is also an annual fee of £140.  The introductory offer for balance transfers is also relatively miserly at just 6 months.  Applicants need to be over the age of 18 when applying for the card.

Overall

Overall the Virgin Atlantic Black credit card is going to have a limited amount of appeal to most people.  The APR of 47.2% is exceptionally high when most other companies are charging around 17-20%.  The £140 annual fee is another factor that is going to put a lot of people off using the card. Really it is hard to see too many reasons for taking this card out.

If you are disciplined and pay the balance each month and spend a lot of money on it you may be able to get yourself a free flight or upgrade but most people won’t even come close.  Overall there are much better deals out there for most people.  However some people may be able to get some benefits from the card if they work out the finer points of it.

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Reasons to Have a Credit Card

December 19, 2012 by ·

While some people associated credits cards with debt and high levels of interest there are many benefits to owning one.  If used carefully and the balance paid off each month they can be a very useful and convenient tool.  They are incredibly convenient to use and tend to offer consumers more protection than paying for goods and services with a debit card or cash.  They are particularly useful when shopping online or when abroad in foreign countries.  Here are some of the benefits of using credit cards when shopping.

Reward Schemes

Many credit card companies offer reward schemes to their customers in the form of points or vouchers.  Each time the card is used a number of points are earned depending on the amount of money spent.  Companies such as Tesco and Marks and Spencer’s now offer their own credit cards and the number of points earned using them is usually greater when used in-store.  Other credit card companies offer Air Miles or are in the Nectar Points program.

Consumer Protection

Using a credit card particularly for large and expensive items generally offers more protection to the consumer.  Goods that are bought on a credit card with a value of between £100-30,000 come under Section 75 of the Consumer Credit Act.  This means should you buy something from a company and it is not satisfactory, never arrives or if the company goes bust you can apply to the card company for compensation.

Items and goods bought for less than £100 are also protected.  There is an industry-wide chargeback scheme that is designed to protect consumers.  If there is any problem with the purchase you made you may be able to get your money back through the credit card company.

Earn More Interest

With the interest being offered on most bank and savings accounts being negligible these days it is possible to earn more interest using a credit card.  Many credit cards have introductory offers of 0% on purchases made using card for a certain period of time.  The exact length of time will vary from company to company.  The idea is to then put as many of your monthly expenses on your card allowing the money in your bank account to accumulate and earn more interest than you otherwise normally would.  Then before the introductory offer ends pay off the outstanding balance.  Finding a card with a good 0% introductory offer and that offers cashback on purchases is the best way to make your money go further.

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Credit Cards form M&S Bank

December 3, 2012 by ·

Marks and Spencer’s one of the UK’s favourite high street brands has expanded their operations into the world of finance.  The M&S Bank offers a full range of banking services, loans and insurance as well as credit cards at competitive rates.  If you are interested in a credit card from Marks and Spencer’s more details are below.

Introductory Offers

One reason many people choose to switch credit card providers is to take advantage of 0% balance transfer options.  Unlike many of their competitors this is one option that is not available with the M&S credit cards.  While there is 0% interest to pay on new purchases for 15 months and a competitive 15.9% APR the lack of an option to transfer balances is a major minus in the eyes of many people.

Benefits and Features

One of the main benefits of the M&S card is the opportunity to earn M&S points whenever it is used.  Credit card holders are also eligible to join the M&S Platinum Club for a range of special offers and rewards such as earning triple points when using the card in-store or online.  Card holders can also buy M&S travel money with no exchange fees and have access to 24 support and account information either online or through a UK call centre.  As an added bonus in the run up to Christmas 2012 credit card customers are automatically entered into a completion to win one of 100 gift cards worth £1,000 to spend at Marks and Spencer’s stores.

Application

You can apply for the M&S credit by visiting their website.  You must be over the age of 18 and have a full or part-time job.  As usual when applying for any credit card you will be asked for details regarding your income and employment, your bank account number and its sort code and details about your previous addresses if you have lived in your current home for less than 3 years.  You are also required to provide an email address.

Overall the credit card offered by M&S has some good features and a competitive rate of APR at 15.9% which is lower than many of their competitors.  However the lack of an introductory zero % balance transfer option will no doubt put anyone off who is looking to switch cards.  The addition of a zero option balance transfer option is the one thing that the M&S credit card is lacking.

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Credit Cards from Barclays

December 3, 2012 by ·

Barclays is one of the big 4 banks in the UK offering a full range of banking, insurance, mortgage, loan and credit card services. If you are in interested in switching your balance from your current card provider Barclays has one of the best deals available in the UK at the present time.

Introductory Offer

Barclays is currently offering a market leading introductory balance transfer offer of 0% for 24 months. This is longer than most of their competitors and is sure to attract a large number of people looking to switch cards and save money on the interest they are paying. The fee for switching is 3.2% of the balance.

While the introductory balance transfer offer is good the purchase offer is less so. Barclays are currently offering 0% interest on purchase for just 3 months on new purchases made with the card.

For new customers who have their application approved a free Mr B toy will be making its way to them through the post.

Features and Benefits

Currently Barclays are offering a £30 refund on all balances transferred that are over £2,000 and a refund on part of the balance handling fee is available to some customers. This effectively reduces the fee from 3.2% to 2.8%.

Barclays has long been recognised as one of the most innovative banks in the UK and the introduction of contactless card technology is another innovation. Payments under £20 can be made by simply swiping the card without the need to input the chip and pin number. The Paytag system is also being rolled out that enable Barclaycard users to make payments via their phone.

Application

The application conditions for Barclays credit cards are a little more stringent than many other companies. Applicants have to be over the age of 21 and earning at least £20,000 each year. You can apply for Barclays credit cards on their website here. You will need all the usual details such as address, bank details and employment etc. Applications are usually processed very quickly and you will generally receive an answer is less than 60 seconds.

Overall there are many reasons to choose a credit card from Barclays. Their balance transfer offer is the best around at the present time and innovations like contactless payment and Paytag make it simple and more convenient to make small purchases.

Filed Under: Credit cards ·

Credit Cards from Tesco

December 3, 2012 by ·

While Tesco may not seem like the most obvious choice for your next credit card provider they are currently offering one of the most competitive deals around. Tesco already dominates the High Street in the UK with an estimated 1in every 7 pounds spent by shoppers going to Tesco’s. They are now expanding in to the financial sector with the launch of Tesco Bank and the Tesco credit card.

Introductory Offer

There are a number of introductory offers that make credit cards from Tesco a good choice for anyone wants to transfer their balance from another card. There is 0% interest payable on balance transfers for 9 months subject to a 2.9% fee on the opening of the account. There is also a fantastic offer on purchases made using the card with 0% interest payable for 16 months.

The APR after the introductory offer ends is a competitive 16.9% which is better than many other deals currently available.

Features and Benefits

One of the most appealing benefits to many people will be the ability to earn more Clubcard points with their Tesco credit card. Customers using the card get an extra point for each £4 spent with it and the card doubles as a Clubcard as well. This means that customers can earn 5 Clubcard points when they spend £4 at Tesco stores and Tesco Fuel garages throughout the UK. Currently there are more than 600 different rewards to choose from including money off at restaurants, cinema trips and days out.

Other benefits of the card include 24 hour support from a UK based call centre, safe and secure online banking, text alerts when you are nearing your credit limit and a number of Fraudsafe features designed to protect you if you lose your card or if it is used fraudulently.

Application

You can apply for the Tesco credit card online here. You will need the address of your employer and their postcode, details of your monthly income after tax, your bank account details and sort code and information about any balances that you wish to transfer. As the application is done online you will have a decision in 60 seconds.

Overall the Tesco credit card offers a competitive rate of APR and some good introductory offers for purchases and balance transfers. Although for many people the key feature will be the ability to earn even more Clubcard points while using it.

Filed Under: Credit cards ·