How does the new Asda credit card compare? Cashback credit card offers 2% back on Asda spending
24 August 2016
Asda Money has launched a new credit card offering 2% cashback on spending at the supermarket and 1% cashback elsewhere.
The Asda Cashback Plus Credit Card (APR 26.2%) charges a £3 monthly fee, but there is no cap on the amount of cashback you can earn.
It also comes with a 15-month 0% balance-transfer deal, with a balance-transfer fee of 3%.
The supermarket also offers a credit card with no monthly fee, which pays 1% cashback on spending in Asda and 0.5% cashback elsewhere.
Here, we explore how these deals compare to other cashback cards on the market.
If you're keen to learn more about any of these deals, we've included links to the Which? Money Compare credit card tables, which contain more information.
Cashback credit card deals compared
Many providers have withdrawn or altered their cashback credit cards following the introduction of regulations that reduce the revenue card companies receive from retailers, so there aren't many to choose from.
The American Express Platinum Cashback Credit Card (APR 28.2%) currently tops our Which? Money Compare cashback credit card tables. It offers 5% cashback on up to £2,500 of spending in the first three months, and up to 1.25% cashback thereafter depending on your overall annual spend, although it comes with an annual fee of £25.
The American Express Platinum Cashback Everyday Credit Card (APR 22.9%) has no annual fee, offers 5% cashback on up to £2,000 of spending in the first three months, and up to 1% cashback thereafter depending on your overall annual spend.
Alternatively, you might want to consider a reward credit card, which allows you to earn points that you can redeem with retailers.
The golden rule with any reward or cashback credit card is to pay off your balance in full every month, otherwise the interest charged is likely to outweigh any rewards earned.
The Which? Money Compare credit card tables let you search cards from providers large and small to choose a great deal based on quality of service as well as cost and benefits.
Which? Money Compare table - cash back credit cards - dozens of cards compared
Make the most of 0% balance-transfer credit cards
Those who already have debt on an existing card could transfer this to the Asda Cashback Plus Credit Card (APR 26.2%) and pay no interest on it for 15 months.
However, there are more competitive 0% balance-transfer deals available.
The Virgin 41 Month Balance Transfer Credit Card (APR 20.9%) has longest balance-transfer deal in the Which? Money Compare tables, although this comes with a 4% balance-transfer fee.
With these credit cards, it's important to repay your balance in full before the 0% offer comes to an end to avoid paying a high rate of interest on the remaining debt.
Which? Money Compare table - 0% balance transfer credit cards - find a great deal
- See our step-by-step guide to finding the best credit card
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