HSBC has launched a new credit card with an APR of 21.9% that allows you to earn rewards as you spend.
When you take out the card you will get 2,500 reward points worth £25 after your first purchase.
You will also receive 2,500 Reward points worth £25 annually for the first five years if spend more than £10,000 in the year.
You'll get a point for every £5 spent on the card, with each point worth 1p. This means to get £1 of reward points you will have to spend £500.
The card comes with 0% interest on purchases and balance transfers (2% balance transfer fee) for six months from opening the account with a representative APR of 21.9%.
Where can you spend the points?
You will be able to spend your points anywhere that accepts Mastercard.
Cardholders will be able to redeem points on purchases with the Mastercard Pay with Rewards app or website.
Once you have logged on all you have to do is use the "Next Purchase" feature when you want to use your points.
Then just use your card as normal and the monetary equivalent of your points will be credited to your card account.
As a result of an EU ruling in 2015 capping debit and credit card processing fees a number of providers have cut their reward credit cards in order to remain profitable.
There are still a number of options out there, but the card that is best for you will largely depend on where you shop.
John Lewis and Waitrose shoppers can take advantage of the Partnership Card which offers one point for every £1 spent in both shops, plus a point for every £2 spent elsewhere. This would earn £60 in vouchers based on a £6,000 yearly spend in either John Lewis or Waitrose, an effective 1% return. It comes with a representative 18.9% APR variable.
The Tesco Bank Clubcard Credit Card offers one point for every £4 you spend in Tesco (a point is worth a penny), and one point for every £8 you spend elsewhere. Tesco then turns your points into weekly vouchers to help you save on groceries, with 150 points worth £1.50. Representative APR is 19.9% if you don’t pay the card off in full.
The Sainsbury's Bank Nectar Purchase Credit Card offers you two Nectar points for every £1 spent in Sainsbury’s and one point for every £5 spent elsewhere. If you spend £6,000 a year on your card in Sainsbury's then you'll earn the equivalent of £60 (500 points = £2.50). Representative 20.9% APR variable.
Shoppers using the Asda Money Cashback Credit Card earn vouchers when you spend - 1% on shopping at Asda plus 0.2% when you shop elsewhere. Once you have accrued £2.50 you can convert this to a voucher to spend in Asda. If you spend £6,000 a year in Asda using this card you'll earn the equivalent of £60 in vouchers. Representative 19.9% APR variable.
Regular shoppers in M&S can earn vouchers as they spend using the Marks & Spencer Reward Plus Credit Card. Users earn two points for every £1 spent in store during the first year then one point for every £1 thereafter (a point is worth a penny). Cardholders earn one point for every £5 spent elsewhere. So, spend £6,000 a year in M&S on your card you'll earn vouchers worth £120 in the first year.
You can also earn up to £25 in vouchers when you open an account. You'll receive 2,000 M&S points (equivalent to £20 M&S voucher) when you spend on your card within 90 days of opening. You will also get double M&S points on all your M&S shopping for the first 12 months.
A bonus 500 points - worth £5 - will be credited to your points account when you spend on food, clothing or home at M&S. It comes with an APR of 19.9% APR on shopping and balance transfers for the first six months.