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Focus On: Amex pays YOU for 0% on purchases

By MoneySupermarket.com  |  Posted: June 11, 2012

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Most credit cards which offer cashback don't come with generous introductory rates on spending - that is until now...

Amex has launched a new credit card, available exclusively through MoneySupermarket, which offers not only 0% on purchases for 16 months, but also gives users 1.25% cashback on their spending.

Here, we take a look at whether this could be the right card for you...

What's the deal?

The American Express Platinum Cashback Credit Card offers an exclusive 0% on purchases for 16 months if you apply via MoneySupermarket. You then earn 1.25% cashback on virtually everything you buy and double cashback of 2.5% for one month every year.

After the 0% introductory period finishes, the card charges an Annual Percentage Rate (APR) of 14% (variable) on purchases, so you will need to make sure you pay off what you owe during the 16-month interest-free period.

However, the card has an annual fee of £25, which bumps up the card's representative APR 18.5% (variable).

To apply for this card you need to be aged over 18, have a current UK bank or building society account, have a permanent UK home address and have an annual household income of at least £20,000.

Any catches?

The biggest drawback of this card is the annual fee, although if you tend to use a credit card for the majority of your spending, you should soon be able to cover the cost of this and earn more on top from the cashback you receive.

Verdict

Cashback cards usually come with relatively high APRs and so generally only benefit those who can clear their balance every month. If you aren't able to do this, then the interest you are charged is likely to wipe out any cashback.

The Amex card, however, enables you to spend and collect cashback without the need to pay off what you owe straightaway, making it a great option for those who need a bit more time to clear their debts.

However, if you can clear your balance every month, then it's worth remembering that alternative cashback cards offer even more generous rewards.

The American Express Platinum Cashback card, for example, enables users to earn 5% cashback on their first £2,000 spend within the first three months. Once the introductory rate ends, you'll earn the standard rate of cashback which is 1.25%.

Customers also receive double cashback, 2.5%, every year during their anniversary month (the month they first took the card out in) as long as they've spent £10,001 or more on their card over the previous 12 months.

But if you don't pay your balance off in full each month you'll again be charged interest at 14%. The American Express Platinum Cashback card also has an annual fee of £25. As a result of the fee, the representative APR on the card is higher than the purchase rate at 18.5% (variable).

Similarly, Capital One's Elite card gives you 5% cashback on everything you buy for the first 99 days after you open your account. The most cashback you can earn during the introductory period is £200. For purchases made after the introductory period you will receive 1% cashback on spending up to the next £15,000, 2% cashback on all purchases from £15,000 up to £50,000 and 1.35% cashback on all purchases from £50,000. However, this card comes with a hefty £120 fee and the rate on purchases is 17.69% APR.

Top tip

Remember that the very best credit card deals only go to those with excellent credit scores. It is worth checking your credit rating before applying for a credit card. If you make several credit card applications which are refused, this can jeopardise your chances of being accepted for credit in the future.

Use the MoneySupermarket Smartsearch tool to find the best cards for your circumstances, without damaging your credit rating.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct. We're free, independent and compare all UK credit cards, as well as offering exclusive deals you can't get anywhere else.

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