Cashback on spending at home and abroad – should you take out a Tandem credit card?

Published by Adam Williams on 13 February 2018.
Last updated on 13 February 2018

Cashback on spending at home and abroad – should you take out a Tandem credit card?

The Tandem Cashback Credit Card has officially launched, offering users cashback on your spending in the UK and around the world.

The card was previously limited to customers who had registered an interest with the provider but has now been opened so anyone can apply and take out a card immediately.

Users will earn 0.5% cashback on all purchases over £1 worldwide, with no limit on your earnings. Cashback earnings are credited to your account on your statement date each month.

There are no fees for using the card abroad, meaning account holders can make purchases and cash withdrawals without incurring a fee. However, interest is charged on cash withdrawals from the transaction date at 18.9% APR.

In the UK, cash transactions also incur a 2.5% fee, subject to a minimum charge of £2.50.

The exchange rate used is the Mastercard exchange rate, which is normally within 0.1% or 0.2% of the actual exchange rate. Tandem does not add any fee on top of this and also does not charge any monthly account fee.

If you don’t pay your card off in full at the end of the month users are charged an interest rate of 18.9% APR (variable).

Applicants must have a minimum income before tax of £13,000 per year and be based in England, Scotland or Wales.

How does Tandem compare to other travel credit cards?

The ability to earn cashback on your spending abroad, as well as on transactions in the UK, makes this a very appealing product.

Depending on your needs, there are a couple of other travel credit cards which are worth a look. The long-standing Halifax Clarity Credit Card also offers no fees on purchases or cash advances worldwide.

While you do not earn cashback as you spend with Halifax, customers who open an account before 28 February 2018 and make a transaction in a foreign currency by 31 March 2018 will receive £20 in cashback. This could be a better deal if you don’t spend a lot on plastic.

Like the Tandem card, this charges interest from the date of cash withdrawal and uses the Mastercard exchange rate.

If you withdraw cash abroad regularly then the Barclaycard Platinum Travel Credit Card could be a better option. Unlike rival cards this doesn't charge interest from the date of withdrawal. So, if you pay off your account in full each month then you won’t pay a penny in charges or interest.

However, there are no cashback offers of any kind with this card. This Barclaycard credit card also uses the Mastercard exchange rate and its no fees guarantee lasts until the end of August 2022.

Like the Tandem card, neither the Halifax or Barclaycard products charge a monthly fee. 

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Leave a comment

You didn't mention that

You didn't mention that Barclaycard also give 0.5% cashback on purchases.
JAH

Do they? They have a Rewards

Do they? They have a Rewards Card that pays in points, not cash, and also charges a fee.