Your Preferred Credit Card

Cotta

Hi All,

I recently spoke to a friend on credit cards, they advised that whilst my own credit card (Clarity) is good for no sterling transactions as it always uses the most favourable rate, for non foreign transactions I am losing out. Currently I pay for everything on my Clarity card with this being paid off via a standing order each month, however my friend advises I should get a card that offers better cash-back and incentives.

Is my friend right and if so what sort of credit card should I be looking at?

madvicker

If you hold a NatWest or RBS Reward account then the Reward credit card is a great package for domestic spending. I average about 1.5% cashback on all my spending when combined with the base 0.5% cashback and the occasional offers.

Alternatives you can look at for domestic spending are:

- Amex Gold card for the first year (after that it's £140 a year)
- BA Amex free card
- Amex cashback credit card, either the free one or the one for £25 a year (only if you spend more than £850 a month)
- Tandem Cashback credit card
- Virgin Atlantic free card

There are others, but those are the ones which instantly pop into my head.

agrinnall

If you look above your post you will see a link to the MSE Cashback Credit Cards guide.

Cotta

Amex seems to be the best with 5% cashback for 3 months and 1% after with no annual fees and no interest as long as bills are paid off each month. Have I missed anything?

madvicker

Only thing to be aware of: Amex cashback is paid annually. With some of the other options you can choose when to redeem your cashback.

terafarma

Tandem Mastercard Cashback credit card.
Barclaycard Visa Cashback credit card - no longer issued to new customers.
Halifax Mastercard Clarity credit card.

Sncjw

You should do it by direct debit not standing order

Craig1981

If paying off in full each month, Virgin Atlantic Free card as said above is a good "freebie" card. APR is 22% - i have had it for a few months now ever since Tesco increased spending for points, and nationwide dropped cashback to 0.5%.
5000 points on first use, the .75 points for every £1 spent. I do the same - everything goes onto the Virgin card and paid off in full... three months in and i have just under 10000 air miles... i have an old Aqua mastercard i keep active as use that abroad as no fees for that... and my bank offer free cash withdrawals abroad too

If virgin decrease their air miles etc, i'll be looking for the next best thing!

msallen

If you can get yourself a Costco membership (twenty odd quid a year) then the Amex Costco card is the best cashback option. 3% on eating out, 2% on travel, 1% on everything else.

I only go into Costco once a year to redeem my cashback, so the membership is equivalent to paying the same amount as a card fee.

Cotta

Still unsure what to do, someone recommended the 123 account but it has a charge of £5 per month. I have a council tax bill of £2k due in 60 days so I need to decide soon.

Cotta

A final post on this, has anyone anymore recommendations?