American Express may have caught the eye of shoppers and takeaway fans this week after announcing one of its credit cards is now offering a tasty cashback deal.
Amex will dish out holders of its Preferred Rewards Gold credit card £10 every month when ordering from Deliveroo.
Cardholders will be able to receive up to £5 twice each month for Deliveroo purchases charged to the card.
New and existing American Express Preferred Rewards Gold cardmembers can tuck into an exclusive new benefit with Deliveroo.
To take advantage, Gold cardmembers simply need to enrol by saving it to their card via the Amex app or their online account by 6 May 2023.
This means that over the course of a year, a cardholder could receive up to £120 cashback based on their Deliveroo purchases alone.
The boost to its Gold reward card came hours after the card provider announcing it will be slashing the amounts customers will earn using its cashback credit cards.
From 4 August, cashback rates will be cut by as much as 50 per cent in some cases.
The cashback cuts relate to its free Platinum Cashback Everyday Card and its Platinum Cashback Card which comes with a £25 annual fee.
Its free customers currently receive 1 per cent cashback when spending more than £5,000 annually, but under the changes any spending up to £10,000 will only earn 0.5 per cent.
Paying card holders will earn 0.75 per cent cashback on spending up to £10,000, down from the current rate of 1 per cent.
The new Deliveroo perk may sway some of its cashback cardmembers as well as new joiners to seriously consider Amex’s Preferred Rewards Gold Credit Card.
|Card||Old cashback on £5,000||New cashback on £5,000||Old cashback on £10,000||New cashback on £10,000||Old cashback on £20,000||New cashback on £20,000|
|Platinum Cashback Everyday||£25||£25||£75||£50||£175||£150|
|Santander All in One Mastercard||N/A||£-11||N/A||£14||N/A||£36|
|Barclaycard Rewards credit card||N/A||£12.50||N/A||£25||N/A||£50|
|Source: This is Money/Head for Points (figures are net including fees)|
The Deliveroo offer compliments a host of other benefits that come with the gold card such as global lounge access and travel inconvenience insurance.
It is also already one of the best when it comes to rewarding spending, doing so in the form of American Express points.
These points can be converted into airline air miles, hotel points or retail gift cards through Amex itself.
As a result, it is the top pick in This is Money’s guide to the best credit cards around – but you must play by the rules, and pay off your balances as you go along, because of the chunky interest it charges.
It comes with a 22.2 per cent rate on purchases but a representative APR of 56.6 per cent, thanks to an annual fee of £140 due after the first year.
New card members can also earn 20,000 points if they spend £3,000 within the first three months which is enough for a £100 gift card from Amazon.
‘Amex has been proactive in seeking out new ways to offer benefits to cardholders at a time when its more traditional perks centred around airport lounges, dining out and events, have been harder to take advantage of,’ said Chris Lilly, credit specialist at the personal finance comparison site, Finder.
‘The Deliveroo offer reaffirms that Amex is always on the hunt for diverse sweeteners to help retain existing customers and entice new ones at the same time.
‘This is a card that’s suited to people who will use it frequently and really engage with all the perks the card can offer, but won’t carry a balance from month to month – instead always paying their monthly bill off in full.
This is a card that’s suited to people who will use it frequently and really engage with all the perks the card can offer, but won’t carry a balance from month to month.
‘Those who do carry a balance from month to month stand a good chance of paying more in interest and fees than they earn in rewards.’
Should you apply?
Choosing the best credit card like with many things boils down to whether the benefits on offer are best suited to your circumstances.
It may be that you are looking for a card to clear debt – and in that case a balance transfer credit card might work best.
This allows customers to pay off debts by transferring the entire debt over to the new card, often with the promise of 0 per cent interest for a fixed period of time.
Or equally, you may be optimistic that with the vaccine rollout in full swing, you’ll soon be making up for lost time by holidaying abroad and therefore require a credit card best suited to overseas spending.
But if you decide a rewards credit card is for you, then a lot will depend on how much money you spend and how you spend it.
‘The most suitable reward card will depend on how someone spends their money, so if they are in a habit of using their credit card it may be worth taking a step back and taking a look at the different retailers that form their spending pattern,’ said Rachel Springall, finance expert at Moneyfacts.
The Amex Gold card is our top pick for rewards, but beware of the £140 fee after year one
‘At this stage consider the current reward or cashback cards available to see if they could be taking advantage of a scheme instead by using that credit card for spending.
‘However, its important spenders clear their balance before interest applies as this could wipe out any benefits.’
A major issue for those considering Amex’s Gold card is the £140 annual fee that you will begin paying after the first year.
For those looking for cheaper reward or cashback card, there are other options out there.
‘Putting aside the ultra-elite charge and credit cards on the market, the Preferred Rewards Gold card offers perhaps the most diverse and engaging perks scheme around,’ said Lilly.
‘For those who can’t stomach the fee, Amex offers alternatives such as the Platinum Cashback Everyday Card.
‘Whilst for those hoping to finally holiday abroad in the coming months, Santander’s All in One offers cashback plus fee-free currency conversion could be a great alternative.’
You can find out more about our best credit card deals for purchases, rewards, holidays and clearing debts here.
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