Is it worth getting an Amazon reward credit card?

Amazon has launched a new credit card that offers customers rewards for spending at the online retailer and withdrawing your card elsewhere.

The Amazon Platinum Mastercard gives you 1.5 points for every £2 spent on the Amazon website, plus spenders get one point for every £2 spent elsewhere on the card.

The free card comes with 0 percent interest on purchases for three months and a standard rate of 21.9 percent (APR). When you register you will also receive a gift voucher of 10 euros.

Amazon Platinum Card: Shoppers collect reward points to spend at the online retailer

Amazon Platinum Card: Shoppers collect reward points to spend at the online retailer

But how generous is the offer really?

The card pays a 0.75 percent fee for spending at Amazon and 0.5 percent back when you swipe your card elsewhere.

Once you reach 1,000 points, users will receive a £10 gift card to use on the site – meaning each point is worth a penny.

Therefore, to earn a £10 voucher you would have to spend £2,000 on the card or £1,333 on the Amazon website.

To remember rewards and cashback cards are designed to encourage you to spend more. If you fall into the trap of only paying the minimum amount set by your provider, it can apply hefty interest to your balance.

The Amazon card comes with a higher-than-average APR of 21.9 percent, meaning any income you earn from spending on the card will quickly be swallowed up in interest if you fall into the minimum payback trap.

To put it in perspective, if you spent the £1,333 on Amazon it would take to earn enough points for a £10 voucher, it would cost you £23 a month in interest if you didn’t settle the balance in full.

THIS IS MONEY RULE

In the past year, many credit card providers have scaled back or completely abolished their cashback and rewards schemes.

Most providers blame a change in European Union rules on interchange fees — the amount they can charge retailers for processing card payments — which reduces the amount they can earn for each transaction. capped.

Providers claimed it was these profits that typically allowed them to offer rewards and cashback schemes on credit cards.

Unfortunately, this means that lucrative offers on cards that reward your spending with points, vouchers or cashback are now scarce.

So it’s good news that online retailer Amazon has launched a new deal that gives a little extra for your spending. But if you’re looking for a new rewards card, there are more generous offers to be found (see below).

Are there better alternatives?

Of course, the best reward system for you will depend on where you shop the most.

For example, it makes no sense to sign up for a scheme for a supermarket that you hardly ever visit, no matter how attractive the rate is.

Carefully consider which scheme you join. But here are a few of our top picks to consider.

cashback

For those who prefer not to be tied to a particular retailer to spend their rewards, consider a cash back credit card.

American Express has the two highest paying deals, are Platinum Everyday Cashback Credit Card and the premium Platinum Cashback Credit Card.

The more lucrative option, the Platinum Cashback credit card, offers 5 percent back on your spending for the first three months (up to £125) plus 3 percent back (up to £15) on spending with Amazon in the first three months.

After the first three months, the rate drops to 1 percent when spending up to £10,000 and then 1.25 percent.

If you don’t settle the balance every month, you’ll get 22.9 percent interest. It comes with an annual fee of £25.

M&S vouchers

M&S Banks Shopping Plus offer card comes with 25 months of 0 percent interest on purchases and balance transfers and £5 in M&S points when you sign up.

In addition, you get points for spending in shops and elsewhere – you get one point for every £1 spent in shops and one point for every £5 spent elsewhere. Your points are converted into vouchers and sent to you four times a year.

Each point is worth a penny, so earning a £5 voucher would mean spending £500 in shops or spending £2500 elsewhere.

Money from your Tesco store, restaurant meals and days out

Tesco’s Clubcard scheme is one of the most lucrative supermarket loyalty programs.

The supermarket bank offers a Buy credit card that gives 0 percent interest for 28 months. In addition, your credit card doubles as your Club Card, giving you five points for every £4 you spend in Tesco stores and five for every £4 you spend on Tesco fuel (excluding Esso Fuel).

Each point is worth a penny when spent in shops, but you can increase the value up to 4 pence when you exchange it for vouchers that you can spend at some partners, including chain restaurants and day trips.

Editor’s Credit Card Deals of the Week

Representative example: If you spend £200 at a purchase rate of 18.9% per annum (variable), your representative rate is 18.9% APR (variable). Credit limits and terms may vary based on your individual circumstances. Balance transfer offers and introductory fees limited to transfers made 60/90 days after account opening. See product-specific terms and conditions. *must spend £1k within 3 months

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