Asda Money is to reduce the rewards given to customers with its flagship credit card.
The supermarket is cutting the cashback earned on the Asda Cashback Credit Card for spending outside of the retailer’s shops.
At present, cardholders earn vouchers equivalent to 0.5% cashback when spending outside of Asda, but this will be cut to 0.2% from Friday 13 April 2018.
Customers will continue to earn 1% on spending in Asda shops, online at Asda, and in its petrol stations.
While the product is called the Asda Cashback Credit Card, you earn Asda vouchers when you spend using this card – rather than cash. Once you have accrued £2.50 you can convert this to a voucher to spend in Asda, and this will also remain the same after 13 April.
A statement released by Asda says: “Following a recent review of our Asda Money credit card offer, we have made some changes to our cashback offer for purchases made outside Asda.
“Our card continues to offer customers one of the most competitive cash back offers in the market.”
What other options do I have?
If you’re a regular Asda shopper, this card is still an attractive offer as the rewards for spending directly with the retailer haven’t changed.
However, reducing the rewards on spending elsewhere mean that cashback credit cards could work out better. These also have the benefit of paying cash into your account, rather than limiting you to one retailer’s vouchers as the Asda card does.
The American Express Platinum Cashback Everyday has no annual fee and has an introductory offer of 5% cashback on spending for the first three months, up to a £100 limit. After that cardholders earn 1% cashback on spending over £5,001 per year and 0.5% on spending below this amount.
Bear in mind that American Express is less widely accepted than other types of credit card.
Elsewhere, the Tandem Cashback credit card offers 0.5% cashback on your spending, both at home and abroad, with no limit on your earnings. You'll also pay no fees on spending or cash machine withdrawals around the world. Interest is, however, charged on cash withdrawals from the day of the transaction.
Finally, Aqua Reward customers receive 0.5% cashback on all spending up to a limit of £100 per year. This card is designed for those with a poor credit history (although anyone can apply) so beware of the high interest rate – 34.9% APR.
If you regularly shop at a supermarket or retailer other than Asda, other cards are worth considering. Amazon, Debenhams, John Lewis, M&S, Sainsbury's and Tesco all have reward cards for shoppers. Read the Moneywise guide to cashback and reward cards to find out more information.