Best Cashback Option?

MoneyBunny_3

Hi Moneysavers

I currently do not have a credit card (I've managed to avoid them like the plague!) but I need to improve my credit rating and am now searching for a card with the best cashback available.

I fully intend to pay off the amounts in full each month, but should I fail I want to know that the interest rate will be reasonable. I won't be able to prove my income either!

If anyone has any ideas, I'd be really greatful!

MoneyBunny

Clariman

2 places you can look. Martin has a cashback article and recommendations here http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1087717218,37843,

The stoozing website also provides guidance and a table here
http://www.stoozing.com/cashback.htm

Amex has got to be a contender. Others worth looking at include the new Egg Money card and Morgan Stanley.

Clariman

MoneyBunny_3

Thanks Clariman

I'm considering the Amazon, Virgin and Tesco credit cards I just wish I could be a little bit more decisive!

Thanks for your help.

Money Bunny

pin

Should also consider the Conran card (run by MBNA) as a possibility.

djblamire

Egg Money card - 1% Cashback.

Daniel

miller

I would not rule out the Halifax One card @ 0% for 12 months. Its Visa so accepted pretty much everywhere.

Assuming a uniform spend throughout the year and the money is kept in ING say @ 3.8% after tax, that is equivalent to a cashback of 1.9% everytime you spend.

Although you said you wanted to pay off in full. To benefit from this card only the minimum balance should be paid for the first 12 months.

Matt83UK_2

Egg Money all the way, minimum 1% cashback, free cashwithdrawls best non-promotional and non-AMEX interest rates, fantastic positive balance.

KTF

Matt83UK wrote:

Egg Money all the way, minimum 1% cashback, free cashwithdrawls best non-promotional and non-AMEX interest rates, fantastic positive balance.

You would still go for egg over Amex (assuming it gets cleared every month)?

Matt83UK_2

Egg have a good reputation, Amex don't, so whilst new promotional Amex cards have really good rates, I wouldn't jump into bed with them over a fractional percentage. In addition Mastercard is more widely accepted than Amex, most small/medium merchants won't accept Amex because it's a seperate application and there merchant fee is usually about an extra 1% beyond their Visa/MC rate. Someone mentioned as well that with Amex you can't complain to Ombusman (2nd/3rd hand info) due to the way the company is setup or something. I wish I was on a referral scheme for Egg, I've sent at least three people their way in work alone lol

jonnyenglish

Why does everyone berate Amex so much?

I have two Amex cards, a gold charge card and the Blue credit card. Both enable me to view all transactions on-line and help the environment by offering me the choice of not receiving any paper statements.
Unlike some of the other cc companies like MBNA and HBOS, they don't inundate me with promotional material for loans and other products through the post either.

I am also very satisfied with their customer service which has resolved any problem I have raised with them straight away and they don't leave you waiting in an interminable queue on the phone when you ring them up either. Their cashback rate of 2% for the first three months before reverting to 1% (0.5% if you spend less than £2000) is competitive too.

I know that Amex is not as widely accepted as Visa /Mastercard, however I have not had any problems using it at the places where I purchase goods/petrol/food the most (Tesco, Boots, WHSmith, etc.) After reading some of the threads on this site I am lead to believe that Amex is becoming more accepted as Visa/mastercard raise their merchants' rates anyway.

Matt83UK_2

After reading some of the threads on this site I am lead to believe that Amex is becoming more accepted as Visa/mastercard raise their merchants' rates anyway.

It's simply not the case. When you apply for a merchant account the bank sort out the MC/Visa/Maestro for you, you can negiotate for a good rate, Amex is a seperate application and I've never seen a rate less than 0.5% greater than the Visa/MC rate. In addition Amex favour more in the consumer so merchant is screwed more than the already difficult VC/Mastercard disputes/chargeback scenarios. Sure you may be able to pay for your groceries in Asda, but with a card I want reassurance that practically every shop and service from buying a sandwich to paying a call-out to replace a tyre will accept my card. I've dealt with AMEX customer service in the past, you get conflicting statements from staff and they don't respond to complaint letters, it's one of them you probably won't get the impression until something goes wrong.