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I am about to start a 3 month long business trip where I will be using a credit card for all my expenses. It will cost me around £500 a week and my expenses will be reimbursed each week when I provide receipts.


I currently have an American Express platinum cash back card which I have been using for the 5% introductory bonus. It will drop to 1.25% very soon so I have been doing some research as to what would suit me better. I also currently earn nearly 3% interest on all funds in my current accounts.


Cash back card:
  • 1.25% cash back for all purchases
  • not accepted everywhere
  • 3% interest for my spending but have to repay it within 1 month so will not be earning much interest


0% purchases card
  • no cash back
  • accepted everywhere
  • 3% interest on all spending and I repay only monthly minimum and earn interest on all my spending over the 3 months for next 24 months


Am I correct in assuming the 0% purchases is a much better option as I will be adding around £500 cash a week to my current accounts and will not have to pay anything on this for 2 years while the American express gives 1.25% cash back but I wont be earning anywhere near the same amount of interest?

Comments

  • MallyGirl
    MallyGirl Posts: 6,513
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    xarthok wrote: »
      Am I correct in assuming the 0% purchases is a much better option as I will be adding around £500 cash a week to my current accounts and will not have to pay anything on this for 2 years while the American express gives 1.25% cash back but I wont be earning anywhere near the same amount of interest?

    don't forget that you will need to make the minimum payments (but you can of course simply spend that amount again to keep the maximum amount at 0%)
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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    All views are my own and not the official line of MoneySavingExpert.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
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    The alternative would be to get a 0% Balance Transfer card.

    Pay on your Amex (pocketting the cashback) then transfer to a 0% card.

    You'll either have to pay a fee or accept a little less than the 24 months 0% that you are looking at with the 0% spending card, but if you compare lost interest to gained cashback you might be better off.
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