Tag Archives: Cards

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Comparing Cashback and Rewards Credit Cards

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The common perception is that most people carry a balance on their card when it comes to credit card usage. However, reality is a bit different. The UK Cards Association reports that 61% of credit card users pay their bill in full each month. Therefore, if you fall in this category, it might be a good idea for you to have a card that will reward you for spending on it.

It is worth exploring the numerous rewards and cashback cards that are available if you really do pay your card off in full each month. In this way, the provider will actually pay you for using your credit card. However, you will need to make a decision whether to go for a card which will help you earn some form of reward points or for a straightforward cashback card.

1Here we will make a quick comparison of some of the leading cashback and reward cards in order for you to see how much you really get back for your spending.

We will make a quick comparison between credit cards and cashback cards. We will use the American Express Platinum Cashback Everyday credit card and the American Express Preferred Rewards Gold charge card. For the purposes of this comparison, the following numbers will be used. , £6,000 is spent on each card for the duration of one year, with £2,000 spent in the first three months and £2,000 of the other £4,000 spent in big supermarket chains and petrol stations over the following nine months.

What you earn from the Platinum Cashback Everyday card is around £100 which is about 5% on up to £2 000 spent in the first three months. For the next £4 000 that are spent, the cashback is earned at 1% which adds £40 more to what you have received.

Now we will see what you get for the same amount of money with the Preferred Rewards Gold card.  It should be noted that the first three months give you an introductory bonus of 20 000 American Express Membership reward points. These points can be easily converted into £100-worth of gift vouchers for a lot of shops and big brands. This means that you have 5% return which is the same as the introductory bonus on the Platinum Cashback Everyday card.

So it might be the case that rewards cards prove to be better than cashback cards in terms of value. Nevertheless, it is worth exploring your options carefully before choosing which one you will go for.

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New Vauxhall Rewards Card Is Launched

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It’s quite common for buyers to use a credit card to pay for some or all of the cost of a vehicle, but it’s now even more beneficial to do so as a new credit card partnership between Capital One and Vauxhall offers the chance to earn money off the cost of a new car or van via a rewards credit card. It’s worth noting that  there isn’t much point in getting this card if you’re not a fan of Vauxhall vehicles, but you will definitely enjoy this offer if you are. The Vauxhall Rewards credit card could provide you with Reward Points that could shave up to £1,500 off the purchase of a new Vauxhall, depending on the model you go for. In order to gain advantage of this offer and obtain the card, you’ll need to be aged 21 or over, have an excellent credit history and earn at least £20,000 a year.

The Rewards system is actually very simple; every Reward Point earned is worth £1 off the cost of a new Vauxhall vehicle, And similar to many reward and cashback credit cards at the moment, the Vauxhall Rewards card offers a higher initial rate of rewards. In this case, you can initially earn Reward Points worth 6% of the value of what you spend, although this is capped at either £3,000-worth of spending or the end of your first three months of having the card, depending on whichever is reached first. It’s made clear that you can earn a maximum of 180 Reward Points after which the rewards value then switches to 3% of the value of your purchases.

In order to earn the maximum £1,500 discount, you would need to then spend £44,000 on your card before the end of your fourth year, because the points expire at the end of four years. Depending on how much you spend monthly on food, entertainment and holidays, that figure is not entirely out of reach. Membership of the Vauxhall MasterFit Service Club is also offered with the card. In addition, no interest will be required to pay on purchases for the first six months that you hold the card. If you don’t pay off your balance in full each month, the card has a representative APR of 17.9%, and obviously paying interest will soon wipe out the value of the rewards points you’ve earned.

The Rewards Points that you are allowed to spend are capped depending on the model from 500 on the ADAM and Agila to the maximum 1,500 on the Ampera and Insignia. Bear in mind, with Vauxhall’s new ADAM model going for around £10,000, £500 is only a small dent in the price.If you love to spend and also love the idea of a new Vauxhall then this card might be appealing due to its fairly generous rewards points.