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Asda Money slashes its cashback credit card rewards by 60%

The supermarket's credit card reward scheme will undergo a shake-up in April

Asda Money slashes its cashback credit card rewards by 60%

Asda may be known for its ‘price rollback’ promotions – but Asda Money credit cardholders will be less impressed when their cashback rate is also ‘rolled back’ next month.

From 13 April, the 0.5% customers currently receive on products bought at retailers other than Asda will be slashed by more than half to 0.2%.

The 1% on offer when shopping at Asda (including fuel and products bought online) will remain unchanged.

The ‘cashback’ earned can only be redeemed as Asda vouchers.

An Asda spokesperson said this change had been made following a review.

How do cashback credit cards work?

Cashback credit cards are a way of earning money as you spend it.

The rate they pay dictates how much you can receive back from the cost of your purchase – for instance, if a card offers 3% cashback and you buy something for £10, you’ll get 30p back for making that purchase.

Many cashback cards charge an annual fee, but if you regularly spend on one and make sure you pay the balance in full each month, you could earn hundreds of pounds a year on purchases you would have made anyway.

Is the Asda cashback credit card still worth it?

Whether you want to stick with the Asda cashback credit card depends on what you use it for.

If you don’t shop in Asda particularly often and were counting on earning 0.5% elsewhere, then it’s probably worth looking around for a new credit card.

In real terms, the changes to the non-Asda cashback offer mean that where you once would have earned 50p back for every £100 you spent, you will only earn 20p in the future.

If you are a regular Asda customer, however, earning 1% on Asda products and fuel is still a good deal.

There’s also no annual fee, 0% on balance transfers for 12 months, 10% cashback on selected Asda insurance products and 0% interest for six months on purchases of £200 or more at George.com. It charges 19.9% APR variable.

What other cashback credit cards are on the market?

There are still good offers to be had if you’re looking for a cashback or rewards credit card.

Most recently, digital challenger bank Tandem launched a new cashback credit card that also offers fee-free spending overseas, paying 0.5% unlimited cashback for every £1 you spend at 18.9% APR variable.

Elsewhere, American Express holds the top three positions in the Which? Money Compare top-paying cashback credit cards table.

Its Platinum Cashback Everyday Credit Card is currently top, paying 5% cashback (up to £100) in your first three months then 1% on all purchases if you spend over £5,001 (0.5% cashback if not) plus it has a good Which? customer score of 72% (you can compare how all the biggest providers are rated by customers in our guide to the best and worst credit card providers). This card charges 22.9% APR variable.

If you want to stick with Asda but are after higher cashback rewards, the Asda Cashback Plus Credit Card comes fourth in our table, offering £54 back on a £500 monthly spend at 19.9%.

You can see the top 10 cashback credit cards in the table below, ordered by amount of cashback earned if you spend £500 each month.

Compare more of the best cashback credit cards on Which? Money Compare.

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.

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