Make the Most of Your Summer Spending and Reap Rewards From a Cashback Card
30 Jul, 2012, 11:46 BST
CHESTER, England, July 30, 2012 /PRNewswire/ --
- Earn hundreds of pounds extra by being savvy
Summer is an expensive time for families as they fork out on activities and holidays to keep their children entertained, but they could generate some extra money by using a reward card for their spending, according to MoneySupermarket.
Shoppers can make big savings when considering a reward credit card for their purchases. For example, spending £1,000 a month on the American Express Platinum Card (which offers five per cent cashback on up to £2,000 of purchases in the first three months, and 1.25 per cent cashback on everything bought after three months) could gain an extra £225 cash back in a year, increasing to £375 a year when spending £2,000.*
There are also a number of cards designed for shoppers who use their plastic to pay for their weekly grocery or fuel shop. The Tesco Clubcard Credit Card at 16.9 per cent APR for example offers zero per cent on balance transfers for eighteen months or zero per cent on purchases for sixteen months. In addition, points accrued from shopping and petrol are rewarded with five points for every £4 spent in Tesco or one point if spent elsewhere. NatWest's Your Points MasterCard has a slightly higher APR of 17.9 per cent but offers zero per cent on purchases for eighteen months and has a points system for every pound spent, which can be used towards flights, holidays and even on certain brands such as M&S, Boots and Amazon.
Kevin Mountford, head of banking at MoneySupermarket.com, said: "With the additional pressure on household wallets during the summer months, consumers could help to bring a bit of sunshine to their finances by being savvy with the plastic they use for their spending.
"For those who pay off their debt in full each month using cashback and reward cards is a no brainer, as you can benefit from a broad range of incentives on offer, including cash back, air miles and loyalty club points. It is essential you are able to pay off the full balance each month, ideally by a direct debit, to avoid getting stung by interest charges. If you don't pay off your balance in full then the interest charges will outweigh any cashback benefit, making it pointless having a cashback card.
There are a number of cards to suit different circumstances as frequent travellers may benefit more from the American Express British Airways Card which gives air mile points on spending. It offers 1,000 bonus Avios air mile points when you spend £500 in the first three months, and one point for every pound subsequently.
Kevin Mountford continued: "Those looking to use a reward card should shop around first and consider the best card for their own circumstances. If you are a regular shopper it makes sense to look at a card which gives you money off your next shop, or a frequent traveller may benefit more from a card with air mile points for example. Many schemes are tied in to certain retailers and purchase types, and if you don't use them regularly in the right place your card will become redundant. It can take seven to ten days to receive a new card so if you are planning to apply for a card for the summer holidays, you will need to apply now."
MoneySupermarket has a SmartSearch credit profiling tool to help those looking for the best credit card deals for their circumstances. The tool matches the customer's credit profile against the card they are most likely to be accepted for, but doesn't leave a footprint on their credit file.
Notes to Editors:
Cashback
Annual Annual
Cashback/Rewards Cashback/Rewards
based on based on
Rep Introductory GBP1,000 monthly GBP1,500 monthly
Provider APR Period Benefits spend spend
5% cashback
on up to
GBP2,000 of
purchases
in the
first 3
months
1.25%
cashback on
everything 5% x GBP2,000 =
18.5% you buy GBP100 5% x GBP2,000 =
American (based Double 1.25% x GBP100
Express on cashback of GBP10,000 = 1.25% x
Platinum annual 2.5% for GBP125 GBP16,000=
Cashback fee of one month Total = GBP200
Card GBP25) N/A every year GBP225.00 Total = GBP300
1% cashback
on
supermarket
spend Supermarket Supermarket
2% cashback spend x GBP6,000 spend x GBP6,000
on = GBP60 = GBP60
department Petrol x Petrol x
22.8% store spend GBP3,600 = GBP3,600 =
(Based 3% cashback GBP108 GBP108
on on fuel Department Store Department Store
annual spend up to spend x GBP2,400 spend x GBP2,400
Santander fee of GBP300 per = GBP48 = GBP48
123 Card GBP24) N/A month Total - GBP216 Total - GBP216
5% cashback
in the
first 3
months up
to max
GBP100
0.5%
cashback on
all
subsequent
purchases
up to the
next
GBP5,999.99
1% cashback
on all
purchases
from 5% x GBP3,000 = 5% x GBP3,000 =
GBP6,000 to GBP100 GBP100
GBP9,999.99 0.5% x 0.5% x
1.25% GBP5,999.99 = GBP5,999.99 =
cashback on GBP29.99 GBP29.99
all 1% x GBP3,000.01 1% x GBP9,000.01
Aspire purchases = GBP30.00 = GBP90.00
World from Total = Total =
Card 19.9% N/A GBP10,000 GBP159.99 GBP219.99
1% cashback
om ASDA
shopping ASDA shopping x
1% cashback ASDA shopping x GBP3,000 = GBP30
at any ASDA GBP3,000 = GBP30 Petrol x
petrol Petrol x GBP3,600 = GBP36
0% on station GBP3,600 = GBP36 Spend elsewhere
ASDA balance 0.5% Spend elsewhere x GBP11,400 =
Money transfers cashback x GBP5,400 = GBP57
Credit for 12 everywhere GBP27 Total =
Card 14.9% months else Total = GBP93.00 GBP123.00
Table continues
Annual
Cashback/Rewards
based on
Annual Cashback/Rewards based on GBP3,000 monthly
Provider GBP2,000 monthly spend spend
5% x GBP2,000 =
GBP100
1.25% x
5% x GBP2,000 = GBP100 GBP34,000 =
American Express 1.25% x GBP22,000 = GBP275 GBP425
Platinum Cashback Card Total = GBP375 Total = GBP525
Supermarket
spend x GBP6,000
= GBP60
Petrol x
Supermarket spend x GBP6,000 = GBP3,600 =
GBP60 GBP108
Petrol x GBP3,600 = GBP108 Department Store
Department Store spend x GBP2,400 spend x GBP2,400
Santander = GBP48 = GBP48
123 Card Total - GBP216 Total - GBP216
5% x GBP3,000 =
GBP100
0.5% x
GBP5,999.99 =
GBP29.99
1% x GBP9,999.99
= GBP99.99
5% x GBP3,000 = GBP100 1.25% x
0.5% x GBP5,999.99 = GBP29.99 GBP17,000.02 =
1% x GBP9,999.99 = GBP99.99 GBP212.50
Aspire 1.25% x GBP5,000.02 = GBP62.50 Total =
World Card Total = GBP292.48 GBP442.48
ASDA shopping x
GBP3,000 = GBP30
Petrol x
GBP3,600 = GBP36
ASDA shopping x GBP3,000 = GBP30 Spend elsewhere
Petrol x GBP3,600 = GBP36 x GBP29,400 =
Spend elsewhere x GBP17,400 = GBP147
ASDA Money GBP87 Total =
Credit Card Total = GBP153.00 GBP213.00
Rewards
Annual Annual
Cashback/Rewards Cashback/Rewards
based on based on
Rep Introductory GBP1,000 monthly GBP1,500 monthly
Provider APR Period Benefits spend spend
Receive
double
Nectar card
points on
shopping in
store,
online and
in petrol
filling
stations for
2 years.
This means
you will
receive 4
points per
GBP1 spend
in
Sainsbury's,
2 points per
1 litre of Sainsbury's Sainsbury's
Sainsbury's shopping x shopping x
fuel and 2 GBP6,000 = GBP6,000 =
points per 24,000 points 24,000 points
GBP5 spent Petrol x 2,664 Petrol x 2,664
elsewhere litres = 5,328 litres = 5,328
Customers points points
must be a Spend elsewhere Spend elsewhere
Sainsbury's Nectar Card = GBP2,400 = 960 = GBP8,400 =
Finance holder to points 3,360 points
Nectar Card obtain this Total - 30,288 Total - 32,688
Credit Card 12.9% N/A card. points/GBP150 points/GBP162.50
1,000 bonus
Avios points
when you
spend GBP500
in the first 13,000 points 19,000 points
American 3 months
Express 1 Avios 500 points = a 500 points = a
British point for one way flight one way flight
Airways every pound from Manchester from Manchester
Card 19.9% N/A spent to Paris to Paris
A choice 5 points for
between: every GBP4
0% for 16 spent in
months on Tesco stores Tesco shopping x Tesco shopping x
purchases 5 points for GBP6,000 = 7,500 GBP6,000 = 7,500
or; every GBP4 points points
0% interest spent on Petrol x Petrol x
on balance Tesco fuel GBP3,600 = 4,500 GBP3,600 = 4,500
transfers 1 point for points points
for 18 every GBP4 Spend elsewhere Spend elsewhere
months spent = GBP2,400 = 600 = GBP8,400 =
(3.95% elsewhere points 2,100 points
Tesco balance 150 points = Total - 12,600 Total - 14,100
Clubcard transfer fee GBP1.50 points/GBP84 points/GBP94
Credit Card 16.9% applies) voucher voucher voucher
1 point
received per Supermarket Supermarket
GBP1 spent. spend x GBP6,000 spend x GBP6,000
Points can = 6,000 points = 6,000 points
be used Petrol x Petrol x
towards GBP3,600 = 3,600 GBP3,600 = 3,600
flights, points points
holidays and Spend elsewhere Spend elsewhere
NatWest on brands x GBP2,400 = x GBP8,400 =
YourPoints 0% for 18 such as M&S, 2,400 points 8,400 points
World months on Boots and Total - 12,000 Total - 18,000
MasterCard 17.9% purchases Amazon. points points
Table continues
Annual
Cashback/Rewards
based on
Annual Cashback/Rewards based GBP3,000 monthly
Provider on GBP2,000 monthly spend spend
Sainsbury's
shopping x
GBP6,000 =
24,000 points
Petrol x 2,664
Sainsbury's shopping x litres = 5,328
GBP6,000 = 24,000 points points
Petrol x 2,664 litres = 5,328 Spend elsewhere
points = GBP26,400 =
Spend elsewhere = GBP14,400 = 10,560 points
Sainsbury's Finance 5,760 points Total - 39,888
Nectar Card Credit Card Total - 35,088 points/GBP175 points/GBP198
36,000 points
24,000 points 500 points = a
one way flight
American Express 500 points = a one way flight from Manchester
British Airways Card from Manchester to Paris to Paris
Tesco shopping x
GBP6,000 = 7,500
points
Petrol x
Tesco shopping x GBP6,000 = GBP3,600 = 4,500
7,500 points points
Petrol x GBP3,600 = 4,500 Spend elsewhere
points = GBP26,400 =
Spend elsewhere = GBP14,400 = 6,600 points
3,600 points Total - 18,600
Tesco Total - 15,600 points/GBP104 points/GBP124
Clubcard Credit Card voucher voucher
Supermarket
spend x GBP6,000
= 6,000 points
Petrol x
Supermarket spend x GBP6,000 GBP3,600 = 3,600
= 6,000 points points
Petrol x GBP3,600 = 3,600 Spend elsewhere
points x GBP26,400 =
Spend elsewhere x GBP14,400 = 26,400 points
NatWest 14,400 points Total - 36,000
YourPoints World MasterCard Total - 24,000 points points
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