Credit cards Updated:
Barclaycard are offering up to £30 cashback on what you spend at the petrol pump before 31 August. This deal is available on the Barclaycard Gold, Initial, Simplicity, Platinum Purchase, as well as the market-leading Barclaycard Platinum Balance Transfer Visa – which offers 0% on balance transfers for 20 months.
Great – but where's the catch? Well whether there's a catch depends on you. You get 10% cashback on all UK petrol purchases made before the 31 August 2011. This is capped to a maximum of £30.
Providing you repay your petrol-accrued balance in full every month (or by the end of any introductory period, where applicable), you get £30. For free!
However, don't repay the balance in full and you'll start paying interest. Paying interest will soon erode any cashback you earn and may end up costing you dearly!
So, if you're trying to save on petrol is this offer from Barclaycard any good? And, after the initial offer is over, will you be landed with a credit card that's not suitable?
Let's take a look…
Introductory cashback or rewards
Standard cashback or rewards
Other features of the card
Barclaycard Platinum with Balance Transfer Visa
- 10% cashback (up to maximum of £30) on petrol until 31.8.11
- Barclaycard Freedom rewards
- APR 17.5%0% on balance transfers for 20 months - 0% on purchases for 3 months
Representative Example: Based on a credit limit of £1,200 charged at 17.5% variable per annum for purchases. Representative 17.5% APR variable.
American Express Platinum Cashback Card
- 5% cashback (up to maximum of £100) on purchases for first 3 months
- Tiered cashback of up to 1.25% (0.50% on spend up to £3,500 per year. 1.00% on spend between £3,501 - £7,500 per year. 1.25% on spend over £7,501 per year)
- APR 19.9% - 0% on purchases for 6 months
Representative Example: Based on a credit limit of £1,200 charged at 19.9% variable per annum for purchases. Representative 19.9% APR variable.
The AA Credit Card Visa
- 1 reward point for every £2 spent, with 1 point for every £1 spent on fuel, motoring or AA product purchases. Points can be redeemed on a range of AA products and services, or for cashback (2000 points = £10).
- APR 16.9% - 0% on balance transfers for 12 months - 0% on purchases for 10 months
Representative Example: Based on a credit limit of £1,200 charged at 16.9% variable per annum for purchases. Representative 16.9% APR variable.
It's confusing to see how much cashback you will earn, so let's look at how much you would have to spend, to earn the equivalent cashback that Barclaycard is offering.
To get £30 cashback, you'd need to spend at least…
Introductory cashback offer
* This figure is the amount of money you'd have to spend on the AA Credit Card Visa in order to earn £30 in cashback. However, although 2000 points (equivalent to £2,000 of motor-related spending on the card) is only worth £10 in cashback, it can be alternatively used on a whole host of other goods and services. For instance, 2000 points could also earn £40 off AA insurance or breakdown cover.
Cashback credit cards can be great, if used wisely. If you put all your day-to-day spending on the card and then clear it each month, you'd be surprised how quickly that cashback can mount up.
But don't pay back the balance in full and they can wind up an expensive mistake!
Remember as well that initial incentives, such as this £30 offer are not likely to be repeated as generously once you have the card. The advent of cashback sites, such as Quidco or TopCashback mean that you could use your credit card to make purchases and receive a cashback reward that's higher than what you're likely to achieve on the card alone.
However, if you're looking to take out a Barclaycard anyway, either for a great 0% balance transfer or purchase deal, then the chance to earn £30 will surely not go amiss!
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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