Asda has launched a new cashback credit card, paying up to 2% interest on certain spending, though people considering the card will need to decide if it’s worth the £3 monthly fee.
The new Cashback Plus card pays 2% cashback in Asda vouchers on shopping in Asda, including fuel, online and George, Asda’s clothing range. Purchases made in other retailers will earn a 1% reward.
The Cashback Plus Card also offers 0% balance transfers for 15 months, and six months’ 0% interest on purchases from George.com, providing you spend an initial £200.
Asda already offers a fee-free Cashback Credit Card, which rewards Asda shopping with a 1% bonus, and 0.5% on rewards spent elsewhere. This isn’t changing.
Asda’s Cashback card has a 19.9% APR representative, while the Cashback Card Plus is 26.2% APR representative, including the monthly fees.
Someone who only uses the card in Asda will need to spend at least £300 each month before the cashback earned outweighs the £3 monthly fee - if you spend less than £300, you'd be better off with the fee-free card.
Also, despite the name, Asda’s cashback cards are arguably more like a loyalty scheme, as members are paid Asda vouchers instead of cold hard cash when they come to collect their reward.
There's an introductory offer of 5% cashback on spending up to £2,500 over the first three months. After which, cardholders will earn 1% cashback on spending up to £10,000 and 1.25% on any further spending. There's a £25 annual fee.
If you spend £3,000 over the course of a year you'll earn £35 after fees are deducted. The APR representative is 28.2% including the fee. You’ll need to bear in mind that American Express is less widely accepted than Visa or MasterCard.