Quantcast
Last updated on April 21, 2014 at 12:45 EDT

Make the Most of Your Summer Spending and Reap Rewards From a Cashback Card

July 30, 2012

CHESTER, England, July 30, 2012 /PRNewswire/ –

– Earn hundreds of pounds extra by being savvy

Summer is an expensive time for families as they fork out on activities and holidays
to keep their children entertained, but they could generate some extra money by using a
reward card for their spending, according to MoneySupermarket.

Shoppers can make big savings when considering a reward credit card for their
purchases. For example, spending GBP1,000 a month on the American Express Platinum Card
(which offers five per cent cashback on up to GBP2,000 of purchases in the first three
months, and 1.25 per cent cashback on everything bought after three months) could gain an
extra GBP225 cash back in a year, increasing to GBP375 a year when spending GBP2,000.*

There are also a number of cards designed for shoppers who use their plastic to pay
for their weekly grocery or fuel shop. The Tesco Clubcard Credit Card at 16.9 per cent APR
for example offers zero per cent on balance transfers for eighteen months or zero per cent
on purchases for sixteen months. In addition, points accrued from shopping and petrol are
rewarded with five points for every GBP4 spent in Tesco or one point if spent elsewhere.
NatWest’s Your Points MasterCard has a slightly higher APR of 17.9 per cent but offers
zero per cent on purchases for eighteen months and has a points system for every pound
spent, which can be used towards flights, holidays and even on certain brands such as M&S,
Boots and Amazon.

Kevin Mountford, head of banking at MoneySupermarket.com
[http://www.moneysupermarket.com/money ], said: “With the additional pressure on household
wallets during the summer months, consumers could help to bring a bit of sunshine to their
finances by being savvy with the plastic they use for their spending.

“For those who pay off their debt in full each month using cashback and reward cards
is a no brainer, as you can benefit from a broad range of incentives on offer, including
cash back, air miles and loyalty club points. It is essential you are able to pay off the
full balance each month, ideally by a direct debit, to avoid getting stung by interest
charges. If you don’t pay off your balance in full then the interest charges will outweigh
any cashback benefit, making it pointless having a cashback card.

There are a number of cards to suit different circumstances as frequent travellers may
benefit more from the American Express British Airways Card which gives air mile points on
spending. It offers 1,000 bonus Avios air mile points when you spend GBP500 in the first
three months, and one point for every pound subsequently.

Kevin Mountford continued: “Those looking to use a reward card should shop around
first and consider the best card for their own circumstances. If you are a regular shopper
it makes sense to look at a card which gives you money off your next shop, or a frequent
traveller may benefit more from a card with air mile points for example. Many schemes are
tied in to certain retailers and purchase types, and if you don’t use them regularly in
the right place your card will become redundant. It can take seven to ten days to receive
a new card so if you are planning to apply for a card for the summer holidays, you will
need to apply now.”

MoneySupermarket has a SmartSearch
[https://www.moneysupermarket.com/credit-cards/smart-search ] credit profiling tool to help
those looking for the best credit card deals for their circumstances. The tool matches the
customer’s credit profile against the card they are most likely to be accepted for, but
doesn’t leave a footprint on their credit file.

Notes to Editors:

Cashback

                                                       Annual           Annual
                                                  Cashback/Rewards Cashback/Rewards
                                                      based on         based on
                   Rep   Introductory             GBP1,000 monthly GBP1,500 monthly
        Provider   APR      Period     Benefits        spend            spend
                                      5% cashback
                                       on up to
                                      GBP2,000 of
                                       purchases
                                        in the
                                        first 3
                                        months
                                         1.25%
                                      cashback on
                                      everything  5% x GBP2,000 =
                  18.5%                 you buy        GBP100      5% x GBP2,000 =
        American  (based                Double        1.25% x           GBP100
        Express     on                cashback of   GBP10,000 =        1.25% x
        Platinum  annual               2.5% for        GBP125         GBP16,000=
        Cashback  fee of               one month      Total =           GBP200
        Card      GBP25)     N/A      every year     GBP225.00      Total = GBP300
                                      1% cashback
                                          on
                                      supermarket
                                         spend      Supermarket      Supermarket
                                      2% cashback spend x GBP6,000 spend x GBP6,000
                                          on          = GBP60          = GBP60
                                      department      Petrol x         Petrol x
                  22.8%               store spend    GBP3,600 =       GBP3,600 =
                  (Based              3% cashback      GBP108           GBP108
                    on                  on fuel   Department Store Department Store
                  annual              spend up to spend x GBP2,400 spend x GBP2,400
        Santander fee of              GBP300 per      = GBP48          = GBP48
        123 Card  GBP24)     N/A         month     Total - GBP216   Total - GBP216
                                      5% cashback
                                        in the
                                        first 3
                                       months up
                                        to max
                                        GBP100
                                         0.5%
                                      cashback on
                                          all
                                      subsequent
                                       purchases
                                       up to the
                                         next
                                      GBP5,999.99
                                      1% cashback
                                        on all
                                       purchases
                                         from     5% x GBP3,000 =  5% x GBP3,000 =
                                      GBP6,000 to      GBP100           GBP100
                                      GBP9,999.99      0.5% x           0.5% x
                                         1.25%     GBP5,999.99 =    GBP5,999.99 =
                                      cashback on     GBP29.99         GBP29.99
                                          all     1% x GBP3,000.01 1% x GBP9,000.01
        Aspire                         purchases     = GBP30.00       = GBP90.00
        World                            from         Total =          Total =
        Card      19.9%      N/A       GBP10,000     GBP159.99        GBP219.99
                                      1% cashback
                                        om ASDA
                                       shopping                    ASDA shopping x
                                      1% cashback ASDA shopping x  GBP3,000 = GBP30
                                      at any ASDA GBP3,000 = GBP30     Petrol x
                                        petrol        Petrol x     GBP3,600 = GBP36
                            0% on       station   GBP3,600 = GBP36 Spend elsewhere
        ASDA               balance       0.5%     Spend elsewhere   x GBP11,400 =
        Money             transfers    cashback     x GBP5,400 =        GBP57
        Credit              for 12    everywhere       GBP27           Total =
        Card      14.9%     months       else     Total = GBP93.00    GBP123.00

Table continues

                                                                       Annual
                                                                  Cashback/Rewards
                                                                      based on
                                Annual Cashback/Rewards based on  GBP3,000 monthly
               Provider              GBP2,000 monthly spend            spend
                                                                  5% x GBP2,000 =
                                                                       GBP100
                                                                      1.25% x
                                     5% x GBP2,000 = GBP100         GBP34,000 =
        American Express           1.25% x GBP22,000 = GBP275          GBP425
        Platinum Cashback Card           Total = GBP375            Total = GBP525
                                                                    Supermarket
                                                                  spend x GBP6,000
                                                                      = GBP60
                                                                      Petrol x
                                 Supermarket spend x GBP6,000 =      GBP3,600 =
                                             GBP60                     GBP108
                                   Petrol x GBP3,600 = GBP108     Department Store
                               Department Store spend x GBP2,400  spend x GBP2,400
        Santander                           = GBP48                   = GBP48
        123 Card                         Total - GBP216            Total - GBP216
                                                                  5% x GBP3,000 =
                                                                       GBP100
                                                                       0.5% x
                                                                   GBP5,999.99 =
                                                                      GBP29.99
                                                                  1% x GBP9,999.99
                                                                     = GBP99.99
                                     5% x GBP3,000 = GBP100           1.25% x
                                 0.5% x GBP5,999.99 = GBP29.99     GBP17,000.02 =
                                  1% x GBP9,999.99 = GBP99.99        GBP212.50
        Aspire                   1.25% x GBP5,000.02 = GBP62.50       Total =
        World Card                     Total = GBP292.48             GBP442.48
                                                                  ASDA shopping x
                                                                  GBP3,000 = GBP30
                                                                      Petrol x
                                                                  GBP3,600 = GBP36
                                ASDA shopping x GBP3,000 = GBP30  Spend elsewhere
                                   Petrol x GBP3,600 = GBP36       x GBP29,400 =
                                 Spend elsewhere x GBP17,400 =         GBP147
        ASDA Money                           GBP87                    Total =
        Credit Card                    Total = GBP153.00             GBP213.00

Rewards

                                                         Annual           Annual
                                                    Cashback/Rewards Cashback/Rewards
                                                        based on         based on
                     Rep  Introductory              GBP1,000 monthly GBP1,500 monthly
         Provider    APR     Period      Benefits        spend            spend
                                         Receive
                                          double
                                       Nectar card
                                        points on
                                       shopping in
                                          store,
                                        online and
                                        in petrol
                                         filling
                                       stations for
                                         2 years.
                                        This means
                                         you will
                                        receive 4
                                        points per
                                        GBP1 spend
                                            in
                                       Sainsbury's,
                                       2 points per
                                        1 litre of    Sainsbury's      Sainsbury's
                                       Sainsbury's     shopping x       shopping x
                                        fuel and 2     GBP6,000 =       GBP6,000 =
                                        points per   24,000 points    24,000 points
                                        GBP5 spent   Petrol x 2,664   Petrol x 2,664
                                        elsewhere    litres = 5,328   litres = 5,328
                                        Customers        points           points
                                        must be a   Spend elsewhere  Spend elsewhere
        Sainsbury's                    Nectar Card  = GBP2,400 = 960   = GBP8,400 =
        Finance                         holder to        points        3,360 points
        Nectar Card                    obtain this   Total - 30,288   Total - 32,688
        Credit Card 12.9%     N/A         card.      points/GBP150   points/GBP162.50
                                       1,000 bonus
                                       Avios points
                                         when you
                                       spend GBP500
                                       in the first  13,000 points    19,000 points
        American                         3 months
        Express                          1 Avios     500 points = a   500 points = a
        British                         point for    one way flight   one way flight
        Airways                        every pound  from Manchester  from Manchester
        Card        19.9%     N/A         spent         to Paris         to Paris
                            A choice   5 points for
                            between:    every GBP4
                           0% for 16     spent in
                           months on   Tesco stores Tesco shopping x Tesco shopping x
                           purchases   5 points for GBP6,000 = 7,500 GBP6,000 = 7,500
                              or;       every GBP4       points           points
                          0% interest    spent on       Petrol x         Petrol x
                           on balance   Tesco fuel  GBP3,600 = 4,500 GBP3,600 = 4,500
                           transfers   1 point for       points           points
                             for 18     every GBP4  Spend elsewhere  Spend elsewhere
                             months       spent     = GBP2,400 = 600   = GBP8,400 =
                             (3.95%     elsewhere        points        2,100 points
        Tesco               balance    150 points =  Total - 12,600   Total - 14,100
        Clubcard          transfer fee   GBP1.50      points/GBP84     points/GBP94
        Credit Card 16.9%   applies)     voucher        voucher          voucher
                                         1 point
                                       received per   Supermarket      Supermarket
                                       GBP1 spent.  spend x GBP6,000 spend x GBP6,000
                                        Points can   = 6,000 points   = 6,000 points
                                         be used        Petrol x         Petrol x
                                         towards    GBP3,600 = 3,600 GBP3,600 = 3,600
                                         flights,        points           points
                                       holidays and Spend elsewhere  Spend elsewhere
        NatWest                         on brands     x GBP2,400 =     x GBP8,400 =
        YourPoints         0% for 18   such as M&S,   2,400 points     8,400 points
        World              months on    Boots and    Total - 12,000   Total - 18,000
        MasterCard  17.9%  purchases     Amazon.         points           points

Table continues

                                                                       Annual
                                                                  Cashback/Rewards
                                                                      based on
                                    Annual Cashback/Rewards based GBP3,000 monthly
                 Provider             on GBP2,000 monthly spend        spend
                                                                    Sainsbury's
                                                                     shopping x
                                                                     GBP6,000 =
                                                                   24,000 points
                                                                   Petrol x 2,664
                                       Sainsbury's shopping x      litres = 5,328
                                      GBP6,000 = 24,000 points         points
                                    Petrol x 2,664 litres = 5,328 Spend elsewhere
                                               points              = GBP26,400 =
                                    Spend elsewhere = GBP14,400 =  10,560 points
        Sainsbury's Finance                 5,760 points           Total - 39,888
        Nectar Card Credit Card     Total - 35,088 points/GBP175   points/GBP198
                                                                   36,000 points
                                            24,000 points          500 points = a
                                                                   one way flight
        American Express            500 points = a one way flight from Manchester
        British Airways Card          from Manchester to Paris        to Paris
                                                                  Tesco shopping x
                                                                  GBP6,000 = 7,500
                                                                       points
                                                                      Petrol x
                                     Tesco shopping x GBP6,000 =  GBP3,600 = 4,500
                                            7,500 points               points
                                      Petrol x GBP3,600 = 4,500   Spend elsewhere
                                               points              = GBP26,400 =
                                    Spend elsewhere = GBP14,400 =   6,600 points
                                            3,600 points           Total - 18,600
        Tesco                       Total - 15,600 points/GBP104   points/GBP124
        Clubcard Credit Card                   voucher                voucher
                                                                    Supermarket
                                                                  spend x GBP6,000
                                                                   = 6,000 points
                                                                      Petrol x
                                    Supermarket spend x GBP6,000  GBP3,600 = 3,600
                                           = 6,000 points              points
                                      Petrol x GBP3,600 = 3,600   Spend elsewhere
                                               points              x GBP26,400 =
                                    Spend elsewhere x GBP14,400 =  26,400 points
        NatWest                             14,400 points          Total - 36,000
        YourPoints World MasterCard     Total - 24,000 points          points

MoneySupermarket.com’s customer commitment

        - No other site compares more prices or products
        - We are independent so only find the best deals for you
        - The price you see is the price you pay - you don't need to go direct and you
          won't get a better deal doing so
        - Your details are safe with us and we won't sell them to anybody

MoneySupermarket.com compares (at 29thMarch 2012)

        - 98 car insurance providers and 81home insurance providers
        - 11 broadband providers and 18 energy providers
        - 31 unsecured loan and 5 secured loan providers
        - 62 mortgage lenders and 28 credit card providers
        - 67 savings providers and 37 current account providers.
        - Over 1,750,000 mobile phone deals

We promise to be clear and impartial

        - All the products in our full search results tables are displayed in a
          completely unbiased manner.
        - We don't add fees or commissions on to the prices we compare.
        - There may be times when another site compares more companies than us on a
          particular product, perhaps because of market changes or technical issues. You'll be
          able to see this and know we are working hard to fix it.

We promise to be trustworthy

        - We never use your data to make unwanted sales calls or send you spam.
        - We never pass your personal information to third parties unless you give us
          permission to do so.
        - Even if you choose to receive additional information from us, you can opt out
          at any time.
        - We promise to be supportive.
        - You can use our community forum to get information and help from other
          customers.

If you need further help or support, you can contact our sales advisors or customer
services agents.

        For further information please contact:

        Paul Lawler
        PR Manager Financial Services
        +44(0)1244-370371
        +44(0)787-237-9545
        paul.lawler@moneysupermarket.com

SOURCE moneysupermarket.com


Source: PR Newswire