ASDA Money cashback credit card rate drop

Rich7111

Plus card is going down to 0.2% on all transactions (except the Asda ones which remain at 2%)

Hope this helps, got my letter today

darren72

Rich7111 wrote: »

Pluscard is going down to 0.2% on all transactions (except the Asda ones)

Hope this helps, got my letter today

OK, so the same as the one without the monthly fee !?

[Deleted User]

darren72 wrote: »

OK, so the same as the one without the monthly fee !?

Double Asda cashback compared to the standard one. So if you spend £150/£151 or more per month in Asda or on Asda Fuel then better off having the plus one than not.

£151 = £1.51 cashback on the normal card, £3.02 on the 'plus'.

Obviously it depends what other cards you're eligible for - when I first got Petrol with it I used to think of it as 1% off, so @ 117.9p, you're paying 116.72p.... but as I've got an Aqua Reward (with much better limit - Asda text me every single day to tell me I'm near my limit!) it's actually really only 0.5% more.

Paying £3 a month to get 1.5% more than (say) Aqua Card for Petrol/Asda spend is still potentially worth it (if you spend over £200 p/m), but there are many others out there for even average credit scorers. And if you qualify for the likes of Amex, you're laughing as you'll easily smash £3k if you're spending £200 a month just in Asda!!

Is pretty pants they've cut it and not put the fee down though... even to £2 would've been reasonable IMO. Similar to Santander 123 becoming Santander 1...1.5, at the same price!

evogiles

If its true the plus card is dropping the 1% to 0.2% for shopping elsewhere then it sucks, not even had the card a month, and most of my shopping is elsewhere. haha. If they are cutting it that much they should drop the monthly fee.

WillyWonga

Problem is they are realising shoppers are pretty savvy. By spending on the card and clearing in full each month they are not making the interest. Expect more to follow suit. MBNA scrapped all their airline cards. AmEX lost its appeal on the fees so their co-branded Amex Costco, Nectar and Harrods cards are in doubt now.

vkharch

Rich7111 wrote: »

Plus card is going down to 0.2% on all transactions (except the Asda ones which remain at 2%)

Hope this helps, got my letter today

I've got the letter from Asda with the same

WillPS

Still no mention of this on the official website. Poor show, Creation.

Both products are essentially rubbish now unless you do *all* your normal shopping at Asda.

Somerset_La_La_La wrote: »

Double Asda cashback compared to the standard one. So if you spend £150/£151 or more per month in Asda or on Asda Fuel then better off having the plus one than not.

£151 = £1.51 cashback on the normal card, £3.02 on the 'plus'.

Obviously it depends what other cards you're eligible for - when I first got Petrol with it I used to think of it as 1% off, so @ 117.9p, you're paying 116.72p.... but as I've got an Aqua Reward (with much better limit - Asda text me every single day to tell me I'm near my limit!) it's actually really only 0.5% more.

Paying £3 a month to get 1.5% more than (say) Aqua Card for Petrol/Asda spend is still potentially worth it (if you spend over £200 p/m), but there are many others out there for even average credit scorers. And if you qualify for the likes of Amex, you're laughing as you'll easily smash £3k if you're spending £200 a month just in Asda!!

Is pretty pants they've cut it and not put the fee down though... even to £2 would've been reasonable IMO. Similar to Santander 123 becoming Santander 1...1.5, at the same price!

I challenge your maths.

Spending £151 would lead to an overall benefit of £1.51 on the normal card and 2p on the Plus card (£3.02 "cashback" - £3 monthly fee). By my working, £300 is the equilibrium point - £3 on the normal card, £3 on the Plus card (£6 "cashback" - £3 monthly fee). £301 and up of Asda-spend you are better off with the plus card.

Spending elsewhere changes the maths but after this rate drop you shouldn't be using the Asda card elsewhere (unless you can't get one of the better alternatives).

darren72

I don't know how accurate it is, but I've called Asda Credit Card and they tell me that this is only applying to existing card holders. Anyone applying now will get the rates as advertised on the website (ie, the old rates). It doesn't sound right to me, but that is what they tell me.

[Deleted User]

WillPS wrote: »

Still no mention of this on the official website. Poor show, Creation.

Both products are essentially rubbish now unless you do *all* your normal shopping at Asda.


I challenge your maths.

Spending £151 would lead to an overall benefit of £1.51 on the normal card and 2p on the Plus card (£3.02 "cashback" - £3
monthly fee). By my working, £300 is the equilibrium point - £3 on the normal card, £3 on the Plus card (£6 "cashback" - £3 monthly fee). £301 and up of Asda-spend you are better off with the plus card.

Spending elsewhere changes the maths but after this rate drop you shouldn't be using the Asda card elsewhere (unless you can't get one of the better alternatives).

Ah true - I was looking at purely "covering the fee" - but yea, £300 at Asda to actually 'benefit' overall! As you say, a big hit to both products.

Asda is better than a slap in the face if you shop at Asda, luckily I do. My old address Asda (store or Petrol) isn't nearby! I'd keep it purely because of my Asda spend, even if it was occasional.

Assuming Amex are still fairly tough on credit scoring? So that rules them out for quite a few people.

Aqua must be getting quite a lot of interest (I'd imagine they'd give it to every man and his dog if I've got one), followed potentially by Tandem - but Tandem Credit Card is fairly new, so until they get their current/savings accounts setup, their funds must be quite limited (in comparison to say NewDay!) - so can't see them taking a punt on average credit scorers either.

Amazon from NewDay is pretty good - 0.75% at Amazon, 0.5% elsewhere.

I'm genuinely quite shocked at how few cashback cards are out there, and the ones that are (other than Amex) are hardly anything to write home about! Sadly the writing was on the wall with the Interchange ruling!

As interest rates rise, rather than actively using credit cards for "cashback" I can see it just being more of the stoozing variety again - and even for poorer credit scores on just the 50~ days interest free. Whack all spend on a credit card, save it at 5/6/7%.

darren72 wrote: »

I don't know how accurate it is, but I've called Asda Credit Card and they tell me that this is only applying to existing card holders. Anyone applying now will get the rates as advertised on the website (ie, the old rates). It doesn't sound right to me, but that is what they tell me.

They will do, until the notice of variation hits, with the 2 months warning. So assuming Creation will be shipping them out fairly promptly - if it hit at say the end of March, they'll have until end of May....

Not great for the rest of us, but probably won't be a massive time longer (if it is, I wonder what a few complaints into Creation would do!!)

Geoffrey_Coan

The plus card rate cashback rate is dropping as well from 13th April 2018. From then it will drop from 1% outside of Asda to 0.2%, but retains 2% for Asda, George and Asda fuel purchases.

I received a letter this morning advising me of this change. I've actually got both an Asda Cashback and an Asda Cashback Plus credit card.
I applied for the Plus last year when I calculated that as long as I channeled enough of my spending to the Plus card the increased cashback rate would cover the £3 monthly fee. With this paltry cashback rate I doubt I will be keeping it though.

And for those that ask, no I don't believe it is possible to 'upgrade' or 'downgrade' between the two cards. I had to apply anew for the Plus card and despite repeated asking I couldn't get Creation to transfer some of my (more than generous) credit limit from the Cashback to my Cashback Plus card.