The Asda cashback credit card closes today, meaning all customers will stop earning cashback – and some may have to act fast to make sure they don’t lose what they’ve already earned.
The closure is due to the contract ending between Asda Money and credit card provider Creation. Asda says it is working on a new cashback credit card, but there aren’t any further details on it yet.
Existing customers can either choose to close their Asda credit card or move to an alternative Creation credit card.
The Asda cashback card gave customers a penny for every £1 spent at Asda, and for every £5 spent elsewhere.
Here, Which? explains what the credit card closure means for existing customers, and where you can find the best cashback alternatives.
- What does the closure mean for existing customers?
If you have an Asda cashback credit card, you should have already received a ‘notice of variation’ letter setting out what is changing and what you need to do.
Existing customers will have to choose whether they want to close their credit card or move to a new Creation card.
If you transfer to a replacement Creation card
If you decide to transfer to a Creation card, your Asda credit card will continue to work ‘for now’, but you’ll no longer earn cashback on your purchases.
Customers will either be transferred to the new card automatically, or by completing an ‘opt-in’ process; Creation told us there’s no need to formally apply for the new card, and there’ll be no footprint on your credit report.
The new card will have the same interest rate, spending limit and Pin as the Asda cashback card, and customers should receive the new Creation card by 31 August 2020.
If you close your credit card
If you haven’t opted to move to a Creation card, your credit card account with Asda will be closed, and you’ll be unable to use your cashback credit card after today.
If you have an outstanding balance at the time the card is closed, you’ll have to continue to make at least the minimum repayment each month until the full balance has been paid off.
Creation told us customers experiencing financial difficulties should get in touch to discuss setting up a repayment plan.
What will happen to Asda cashback vouchers?
Today is the final day you can earn cashback with your card, but if you choose to move to the Creation credit card you can continue to create cashback vouchers, as long as it’s before 12 September 2020.
These vouchers can be used in Asda stores or on George.com, and must be spent within 28 days of the day you create your voucher.
However, cashback will be lost if it’s not converted to vouchers by 12 September, if the vouchers are not spent on time, or if you leave it unclaimed and choose to close your Asda cashback credit card without moving to the alternative Creation card.
Best cashback credit cards
According to exclusive Which? research, customers had rated Asda’s cashback credit card highly; it came in joint 15th place out of 30 credit card providers.
But, as the card has now closed, those who want a cashback deal must look elsewhere. The links below will take you through to Which? Money Compare.
American Express is a Which? Recommended Provider, and has one of the highest customer satisfaction scores from our latest credit card survey.
Its Platinum Cashback Credit Card allows new customers to earn 5% cashback for the first six months, up to a maximum of £125. After the first six months, you’ll earn 1% on purchases between £0-£10,000, and 1.25% on purchases over £10,001, and you can also get supplementary cards for family members to increase your earning power. This card has a £25 annual fee and a representative APR of 27.3%.
Alternatively, the American Express Platinum Cashback Everyday Credit Card is fee-free and offers the same 5% cashback offer for the first six months, but up to £100. After that, purchases up to £5,000 will receive 0.5% cashback, and you’ll get 1% cashback if you spend £5,001 or more. This card has a representative APR of 22.2%.
Elsewhere, the Santander All in One Credit Card pays 0.5% cashback on purchases with no limits or caps. If you switch on ‘retail offers’ via online or mobile banking, you can also get five welcome cashback offers from 5% to 25% when you spend with certain retailers. This card has an annual fee of £36 and a representative APR of 21.7%.
- Find out more: best cashback credit cards
What is a cashback credit card?
Cashback credit cards allow you to earn money back when you spend. The cashback you earn is usually paid into your credit card account monthly or yearly, reducing the amount you’ll need to pay back.
In some cases, cashback is paid in vouchers, but this is usually more common of reward credit cards.
The standard rate of cashback tends to be between 0.25%-2% of the amount you spend.
You can compare cashback credit cards using Which? Money Compare.
- Find out more: credit card types explained
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? Money Compare is a trading name of Which? Financial Services Limited.