As an advert for the American Express Platinum Cashback Everyday Credit Card is pulled for being potentially misleading, Which? explores whether it’s actually worth snapping up.
The Advertising Standards Authority (ASA) recently banned a television advert featuring a voiceover that stated: ‘there is a card that could give you 5% cashback on all purchases’.
The card offers 5% cashback during the first three months of card membership, capped at £100. This was explained in the small print of the advert, but the ASA still ruled the advert as misleading and having exaggerated the cashback offer.
Nevertheless, the card still sits at the top of the Which? Money Compare cashback credit card tables.
Here, we explain how this credit card works – and how it compares to other cashback credit cards on the market.
Which? Money Compare table: cashback credit cards – hundreds of cards compared
How does the American Express Everyday Cashback Credit Card compare?
This card pays 5% cashback on your spending, to a total of £100 cashback, for the first three months of its card membership scheme.
After the first three months, however, you’ll earn 1% cashback on all purchases if you spend over £5,001, and 0.5% cashback if you spend up to £5,000. It was this drop in cashback that the ASA took issue with.
If you were to spend £500 per month on the card, you’d earn around £98 over the course of a year. There is no annual fee, but its APR is 22.9%.
Click on the link to visit the Which? Money Compare tables and find out more about the Amex Platinum Cashback Everyday Credit Card.
American Express card for big spenders
American Express offers a similar cashback credit card with a similar name – The American Express Platinum Cashback Credit Card. This comes with a £25 annual fee, but higher rates of cashback.
You’ll get 5% cashback on all purchases during the first three months of card membership, capped at £125. Thereafter, you’ll earn 1.25% cashback on all purchases if you spend over £10,001, and 1% cashback if you spend up to £10,000.
If you were to spend £500 per month on this card, you’d earn an annual profit of £95, once the annual fee had been taken into account. Its APR is also 22.9%.
Click on the link to visit the Which? Money Compare tables and find out more about the Amex Platinum Cashback Credit Card.
Other cashback credit cards
The only cashback credit card in the Which? Money Compare tables that could offer annual returns anywhere near as high as the Amex cards (based on a £500 per month spend) is The Costco True Earnings American Express Credit Card.
This card pays 3% cashback on virtually all restaurant dining, 2% cashback rewards on nearly all travel bookings and 1% almost all other spending. You need to be a Costco member to take out this credit card so make sure the other product is also right for you before applying. Its APR is 19.9% and there is no annual fee.
Click on the link to visit the Which? Money Compare tables and find out more about the Costco True Earnings American Express Card.
Do your research before applying for cashback credit cards
Cashback credit cards can be a great money-making tool, provided you don’t spend more than you can afford to pay back at the end of the month. If you don’t clear your balance, its likely that interest charges will outweigh any rewards you receive.
Many cashback credit cards will only pay rewards for spending with certain retailers, while there are also certain cards that pay rewards in the form of retail vouchers or airmiles.
The Which? Money Compare credit card tables let you search hundreds of cards from providers large and small to choose a great deal based on quality of service as well as cost and benefits.
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.