Cashback card suggestions

Mr_Lawnmower

I'm reconsidering my use of credit cards, on the basis that I'm squandering potential cashback.

The good news is that I have no debt at all and no past history of debt problems. I have a few thousand pounds of savings and the following current financial products on my credit reference files:

• HSBC Gold Visa, £6000 credit limit (16.9% APR)
• HSBC Mastercard, £3250 credit limit (12.9% APR)
• HSBC current account with £500 overdraft facility
• Vodafone phone contract
• O2 mobile broadband contract

I've had all those products since at least 2005, apart from the O2 contract which dates back to summer 2010. The APR on the HSBC Mastercard used to be higher, but dropped to 12.9% over a year ago.

Both credit cards are in monthly use and are cleared in full within the interest free window. The overdraft is unused. There are no missed payments anywhere. I have not applied for a credit product in over two years - the only searches recorded are in connection with car insurance, which I pay for outright. I have never had a credit card from another provider.

I'm single and living with my parents, who are owner occupiers and comfortably off. This means I have no housing costs, just a contribution to household bills.


The bad news is my income. Owing to disability, I'm not in employment and my annual net income is stable at £13,100. It's not very sensible to talk about gross income, because part of my income is tax free leaving me as a non-taxpayer.


If it's in my interests to do so, I'm not averse to requesting a credit limit decrease or closure of one of the HSBC credit cards. When the Mastercard is replaced, it will become a Visa, leaving me with two non-cashback Visa cards.

My priorities in descending order are cashback, issuer other than HSBC Group (for diversity), card scheme other than Visa (again, for diversity). I know American Express has lower acceptance than Visa or Mastercard, but I'd retain one of the HSBC Visa cards for places that don't accept AmEx.


I know there's not many cashback or almost cashback cards these days, and my circumstances seem to rule out many of the options there are. I think I've placed what follows in descending order of preference, but would welcome comments.

American Express Platinum Everyday credit card - no annual fee, but they want £20k household income minimum. Is there any hope they'd consider me, or is that £20k a hard minimum? If they'd accept me, I think this is my best option. (The version of this card with an annual fee is pointless for me - I wouldn't spend enough to make the additional cashback worthwhile).

amazon.co.uk Mastercard - not strictly cashback, but I'm not averse to Amazon gift certificates rather than cash. Is this my best option?

Capital One Classic Extra - really a sub-prime product so the high APR is a given (though largely irrelevant) and I would expect a low credit limit. Still, 0.5% plus £10 a year is considerably better than my current nil cash back.

M&S credit card - I rarely shop in M&S and the underlying credit is from HSBC group anyway.

Tesco credit card - I've no use for Tesco points.

Santander 123 - other than fuel and an occasional department store purchase, my credit card use doesn't fall into the cashback categories. The £24 annual fee makes this a non-starter.

Capital One Aspire - completely out of the question because of the huge annual fee and my modest income.

YorkshireBoy

What's your monthly spend likely to be?

bigadaj

The amex everyday card quotes a minimum household income, your household presumably includes your parents and so you'd met their £20k household income I would have thought.

Mr_Lawnmower

Average monthly spend is probably £300-400.

YorkshireBoy

bigadaj wrote: »

The amex everyday card quotes a minimum household income, your household presumably includes your parents and so you'd met their £20k household income I would have thought.

Amex define household income as your own plus partners income on the application form.

YorkshireBoy

Mr_Lawnmower wrote: »

Average monthly spend is probably £300-400.

Then the Halifax clarity reward card may be an option. It'll pay around 1.6% on your spend. You'd need a Halifax current account but that could make you another £60 a year on top. Plus £100 to switch to them.

Time to leave HSBC?

Mr_Lawnmower

YorkshireBoy wrote: »

Time to leave HSBC?

To get best value out of the Halifax products, I'd need to guarantee at least £300 per month spending on my credit card and at least £1000 arriving each month into my current account. The way my financial arrangements work, neither are guaranteed, despite the description of my circumstances including my stable income being accurate.

HSBC works well for me in many ways apart from throwing away potential cashback.


I rang American Express's new application helpdesk to enquire whether it was even worth me applying. The very pleasant operator confirmed that anyone with a household income (self and partner only - I have no partner) of less than £20k was, in her words, 99% certain to be declined for either of the Platinum Cashback credit cards. On that basis, it doesn't seem worth putting in an application that would be recorded on my credit reference file when there's so little chance of AmEx offering me the card I want.

I suspect I'm a much better risk and, considering my tax free status and zero housing costs, have more disposable income than some who are approved for these cards. However, it's their right to make a marketing decision only to offer cashback cards to those with a sole or joint income of £20k despite that being a poor proxy for possible transaction volume in somewhat unusual cases like mine.

You could have had my spending going through your system, AmEx, but no hard feelings - I'm sorry we couldn't do business.


It's looking like the amazon.co.uk card is my best option unless I reconsider my decision not to move my current account.


Has anyone any thoughts on the value (or otherwise) of reducing the credit limit on one of my HSBC credit cards or even ditching it entirely? Would any applications I make fare better with a lower available credit to income ratio?

YorkshireBoy

Mr_Lawnmower wrote: »

To get best value out of the Halifax products, I'd need to guarantee at least £300 per month spending on my credit card and at least £1000 arriving each month into my current account. The way my financial arrangements work, neither are guaranteed...

Both are easily achievable. Buy a couple of weeks shopping for your parents (in return for cash) on the card, and cycle cash out and back into the current account as and when required.

The above, plus switching your account, could make you £220 over the next 12 months. How much would you have made with Amex or Amazon over the same period?

planteria

i dont hold a Clarity card, and never have, but you are getting what looks to me like very good advice from YorkshireBoy.