Credit card rewards

[Captain...]

I've realised that I should get a new credit card that offers me something back for putting things on it, I have an expense account at work, so stick everything on my card and then pay it off. So I might as well have a card that gives me something back.

Thing is I have no idea what the best deal is, whether to go for Cash Back or Rewards like a store card, I don't bother with tesco and nectar points so they probably wouldn't be much use as credit cards, M&S is supposed to be a good one, but again don't shop there that much.

BA and Virgin offer Avios points as rewards, but I have been told Avios is just shit air miles, and I always end up not using them anyway.

With Cash Back, You have offers such as: 6% cashback in the first 3 months (capped at £120) I'm not really sure what that means, I can get up to £120 cash back in the first 3 months, but what happens after that?

Any advice appreciated.

[Guest MattP]

I use a Virgin Atlantic one, pound a point, entry to the lounge, great value if you fly a lot.

[The People's Hero]

I've realised that I should get a new credit card that offers me something back for putting things on it, I have an expense account at work, so stick everything on my card and then pay it off. So I might as well have a card that gives me something back.

Thing is I have no idea what the best deal is, whether to go for Cash Back or Rewards like a store card, I don't bother with tesco and nectar points so they probably wouldn't be much use as credit cards, M&S is supposed to be a good one, but again don't shop there that much.

BA and Virgin offer Avios points as rewards, but I have been told Avios is just shit air miles, and I always end up not using them anyway.

With Cash Back, You have offers such as: 6% cashback in the first 3 months (capped at £120) I'm not really sure what that means, I can get up to £120 cash back in the first 3 months, but what happens after that?

Any advice appreciated.

Maybe nothing after that.

I'm using my credit card a lot of the moment, they seem to give me points which amount to be worth essentially nothing.

They did give me decent travel cover free though, which I had to claim on last year, so no grumbles from me.

The air miles ones can be good, but make sure you check the terms and conditions and are happy.

[Captain...]

I use a Virgin Atlantic one, pound a point, entry to the lounge, great value if you fly a lot.

But is that only for Virgin Atlantic flights? More of a eurotripper than popping over to the states at the mo.

[Alexikokopops]

This might be worth a read.

I use Nationwide. I'm a Flexaccount (current account) holder so get free travel insurance through that, and I have ISAs with them because at the various points I've taken them out they've been excellent interest. I get 0.5% back which pays out in December and just use it for every day spending. It works out at a handy little bonus for Christmas presents. I realise I can get more cashback with another card but the convenience of having all my banking in one place is worth so much more (for me anyway).

[Guest MattP]

But is that only for Virgin Atlantic flights? More of a eurotripper than popping over to the states at the mo.

Probably not fot you then tbh, yeah it's US/Carib, China, Japan, Africa, Australia etc.

[James.]

From what I've seen store cards are a complete rip off. Massive APR's. Any benefit from holding one will be more than compensated for by a lower APR on a regular credit card (assuming you'll be holding a balance across months and not just paying it off before you get charged interest).

I imagine 6% cashback means they will give you 6% of your balance at the end of 3 months up to £120 (but you'd need to have spent £2,000 on your card to get that amount back). Bit of a false economy if you ask me.

To be honest you earn a decent salary so do you even need a credit card?

[Alexikokopops]

From what I've seen store cards are a complete rip off. Massive APR's. Any benefit from holding one will be more than compensated for by a lower APR on a regular credit card (assuming you'll be holding a balance across months and not just paying it off before you get charged interest).

I imagine 6% cashback means they will give you 6% of your balance at the end of 3 months up to £120 (but you'd need to have spent £2,000 on your card to get that amount back). Bit of a false economy if you ask me.

To be honest you earn a decent salary so do you even need a credit card?

He might be planning to use it like me. I have one that I use for every day spending (and get my 0.5% back on) but I pay off in full every month. Zero interest and a cheeky £60 bonus in December to stick towards presents. Obviously it's designed to draw people in and get them spending more on interest (not working in my case), or for loyalty purposes (which I'd probably say it is).

[James.]

He might be planning to use it like me. I have one that I use for every day spending (and get my 0.5% back on) but I pay off in full every month. Zero interest and a cheeky £60 bonus in December to stick towards presents. Obviously it's designed to draw people in and get them spending more on interest (not working in my case), or for loyalty purposes (which I'd probably say it is).

Good point. I'm clearly missing out so will watch this thead with renewed interest. £60 is certainly better than a kick in the chops.

[Captain...]

As Alexi k says I use it mainly to put my business expenses on so it gets paid off when I get paid, I don't owe anything on it and don't intend to, just looking at getting a bit extra for it.

[Alexikokopops]

Good point. I'm clearly missing out so will watch this thead with renewed interest. £60 is certainly better than a kick in the chops.

You can get ones with higher cash back rates than mine too. I only stick with my Nationwide one because I have all my accounts with them and that ease is worth taking a hit on the cash back. Another trick is to wait for your bonus (if you get one) before applying, and then your 3 month 6% introductory rate (in the example above) coincides with the time when you're spending the most

Also, in Shrap's case, he has the glory of combining it with work expenses. I know someone at my place who used to spend at least 3 days a week on the road. When you're paying £100 a night on a hotel and god knows how much on trains, and then claiming it back anyway, it means that your net spend is zero (because the company's giving you the money back) and yet you're getting anything from 0.5% to 6% back to keep yourself. WINNER.

[Monk]

I have a British Airways premium plus Amex card. Has £150 yearly fee but pays 1.5 Avios miles per pound spent, generous sign up bonus and a 'buy one with miles get one free' flight voucher if you spend £10k on the card in a year. I've got the voucher every year for the past 3 years and it makes business class travel easily attainable - which on BA is bloody brilliant.

If you want a link for an extra sign up bonus that I can refer to anyone, pm me.

Headforpoints.co.uk is also an excellent source of info for UK cards.

In comparison the virgin card offers very poor value for money.

A Hilton visa is also worth looking at as you get a free night in ANY Hilton when you sign up.

[hebangsthedrums]

If you have the discipline to pay off in full then cashback cards are a decent bet. I've got an MBNA Amex which is 1.25% cashback at petrol stations & supermarkets and 0.75% on everything else. I put all my spending on it (most places do take Amex now) & with a fair bit of petrol form work just got £160ish for 2012, online management is good too. Might have a look now to see if there is anything better available now.

[thewarmanator]

Depending on what you intend to put on your credit card depends on which would be best.

If you spend £300 or more a month on petrol then the 123 card with Santander will give you a decent amount back every month plus you get money back on supermarkets also.

A few cards will give you cash back on everything but tend to have low caps or high signing up fees.

Have a look on money supermarket as you can change the filter to reward cards I think.

[tcrofts]

Depending on what you intend to put on your credit card depends on which would be best.

If you spend £300 or more a month on petrol then the 123 card with Santander will give you a decent amount back every month plus you get money back on supermarkets also.

A few cards will give you cash back on everything but tend to have low caps or high signing up fees.

Have a look on money supermarket as you can change the filter to reward cards I think.

The £300 limit on the 123 Credit card is maximum spend. You basically get 3% cashback on fuel up to a maximum monthly spend of £300 a month.

You also get 1% in supermarkets and 2% in department stores.

There is a fee of £24 per year