Barclaycard has launched a new cashback credit card paying an excellent 1% on all spending up to £2,000, and 0.5% cashback after that.
For every £100 you spend on the card, you get £1 cashback, pushing this new card to near the top of our cashback credit card Best Buys.
Which? expert verdict
Which? credit card expert Martyn Saville commented, ‘This card is an excellent choice for consumers who spend less than £2,000 a year on their credit card and pay their bill off in full every month. For spending above £2,000, the cashback rate goes down to a standard 0.5%.
‘Fans of Barclaycard’s contactless payment system will also benefit from the new Barclaycard cashback card – it offers double cashback on contactless payments up to £10.
‘But don’t be tempted in by Barclaycard’s offer of 10% cashback on the interest you pay on the card – with a typical APR of 14.9%, the card charges more than double the interest rate of Barclaycard’s best card for borrowing, the Simplicity Visa card. The cashback you’d earn would be more than wiped out by the additional interest you would have to pay.
‘The card also offers limited cashback of between £5 and £10 on 0% balance transfers. However, Barclaycard’s order of repayments means that you shouldn’t use the card for spending once you’ve transferred a balance to it – Barclaycard allocates any repayments you make to the cheapest debt first, so you’ll be paying interest on all your purchases until you’ve cleared the 0% balance transfer debt in full. Again, this will soon cancel out any cashback you earn.’
Alternatives to Barclaycard
The new Barclaycard is great if you spend less than £2,000 a year on your credit card. However, big spenders may find that the Egg Money World MasterCard offers a higher level of cashback, despite its £1 monthly fee, as it pays 1% cashback on all spending up to £20,000.
If you’re planning a big purchase in the first three months, the American Express Platinum Cashback credit card is still hard to beat, paying an introductory cashback rate of 5% (up to a maximum of £100 cashback).
For full details of all of these cards, check out Which? cashback credit card reviews. For more details on contactless cards, check out the Which? expert guide.
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