New Luma 4% cashback card (supermarkets and petrol)

zerog

http://www.luma.co.uk/cashback-credit-card/

Maximum £9 cashback per month, i.e. £225 of spending

msallen

I see the Luma is designed for people with a poor credit history. Are there any downsides to this if you don't have a poor credit history? e.g. Are you likely to be rejected (as you're unlikely to ever pay the extortionate APR)? Will holding this card reflect negatively on your apparent risk to mainstream lenders?

rb10

msallen wrote: »

I see the Luma is designed for people with a poor credit history. Are there any downsides to this if you don't have a poor credit history? e.g. Are you likely to be rejected (as you're unlikely to ever pay the extortionate APR)? Will holding this card reflect negatively on your apparent risk to mainstream lenders?

It's impossible to say what the chances of being accepted are.

It certainly won't reflect badly to other lenders, as they don't see the name of the lender when they check your credit report.

financialbliss

I spotted zerog's post last night, but have just applied this morning...

Have been accepted - absolutely no indication of credit limit being offered. I'm only interested in this for the 4% cash back. There's a drop-down on the application which asks to select the "minimum amount of credit which would be useful to you". I chose £300 - £500 - I didn't want to risk asking for too much.

I'll report back when I've had an indication of the credit limit. No confirmation emails or texts just yet.

FB.

BugsyBrowne

Like I say it's fine if you're happy getting a couple of loafs of bread free a week after sticking over 200 quid in your tank every month but I personally wouldn't want this shoddy card hanging on a street corner on my credit file TBH.

ChopperST

BugsyBrowne wrote: »

Like I say it's fine if you're happy getting a couple of loafs of bread free a week after sticking over 200 quid in your tank every month but I personally wouldn't want this shoddy card hanging on a street corner on my credit file TBH.

Having this card makes no difference to your credit file!

As the other poster points out your credit file only shows the type of credit a product is i.e. a card / loan etc. and not if its for people with x credit rating.

Both my wife and I hold Aqua cards despite having pristine credit records purely for the 3% cashback. The Aqua cards were there in May when we were approved for a 90% LTV mortgage of a significant sum.

Holding this card will have no bearing on future credit decisions and it is unhelpful to other forumites to suggest it may do. Also £9 a month could be alot of money to some people and is certainly more than a couple of loafs of bread. It is money for nothing and £108 for free if you are disciplined and pay off the card in full every month is not to be sniffed at.

For someone in fuel poverty £109 may well offset a 10% hike in their gas and electricity prices and mean they can keep the lights on or keep their children's bedrooms warm.

wiseshark

Creditors wouldn't know Bugsy the name of the card company, only a low limit which could be a store card. Yes they may be able to guess.

I have an Argos store card with a small limit just for pure handiness. My other cards all have good limits and I recently got an American Express with a very decent limit.

blitzboy

Applied for both myself and my partner, both got the same decision of 'additional checks to be made'.

I only asked for 200-300 as the minumim credit limit as there is no sense in using this card for anything other than the cashback, which you cant earn on more than £225 a month anyway so a £300 limit is plenty. In fact a £100 limit would be plenty as I will be using this card (if accepted) the same as I use the aqua cashback card and pay it back in full within a couple of days of each purchase.

mrmajika

BugsyBrowne wrote: »

Like I say it's fine if you're happy getting a couple of loafs of bread free a week after sticking over 200 quid in your tank every month but I personally wouldn't want this shoddy card hanging on a street corner on my credit file TBH.

I'll take the £108 for me and the £108 for my partner, much in the same manner as I'll take the 2 x £100 from Aqua. Not to mention my Capital One and AMEX cards. It all adds up.

It's called using your loaf!

Thanks to the OP.

Atidi

BugsyBrowne wrote: »

Like I say it's fine if you're happy getting a couple of loafs of bread free a week after sticking over 200 quid in your tank every month but I personally wouldn't want this shoddy card hanging on a street corner on my credit file TBH.

So, apart from the other rebukes you've already received, you think Capital One are a shoddy credit card provider? :eek:

Well, actually I'm not a fan of Capital One having had a run in with them a few years back, but MSE Martin often recommends them.

I see he's currently promoting their cashback card with only 0.5% + £10 cashback.
Yeah, that 0.5% is unlimited both in value and where it is earned, but I suspect for many, the 4% offered by this card despite the limitations would be much better.

Hopefully MSE will soon be including this deal in their recommendations and hopefully acknowledging the OP for bringing it to the attention of the MSE community too.

I would have applied if it were not issued by Capital One and my history with them, but thanks zerog for your post which I am sure will be of huge benefit to many.

Atidi

msallen wrote: »

I see the Luma is designed for people with a poor credit history. Are there any downsides to this if you don't have a poor credit history? e.g. Are you likely to be rejected (as you're unlikely to ever pay the extortionate APR)? Will holding this card reflect negatively on your apparent risk to mainstream lenders?

If you already have £45k+ of possible credit on cards (as suggested by your signature) I doubt it will have too much of an effect

... but the fact you are still in hock to them for over £12k may adversely affect your eligibility for yet more credit.