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Asda Money credit card – how does its interest-free offer compare?
New customers can get up to 0% interest on purchases for six months
Asda Money is offering 0% on purchases for six months to new customers who take out either of its two credit cards.
The Asda Money credit card and Asda Money Select credit card both offer cash back when you spend in Asda supermarkets and fuel forecourts, as well as purchases from other retailers. This cashback can then be converted into vouchers and spent in-store.
New customers can now also get 0% interest on purchases for the first six months, which could suit you if you’d like to spread the cost of a big purchase.
Here, Which? takes a closer look at the rewards on offer, and how the Asda Money credit card compares to other deals on the market.
What does the Asda Money Credit Card offer?
The Asda Money reward credit card, launched with Jaja Finance, offers 1% cashback in Asda Pounds when you use it to buy groceries, fuel and other Asda services, including travel insurance. For example, if you spent £100 in Asda, you would earn one Asda Pound. You can earn 0.3% cashback on purchases made elsewhere.
The card is supplied by Visa, has a representative APR of 25.9% (variable) and there's no annual fee.
The interest-free offer also applies to the Asda Money Select credit card, a credit builder card that offers the same benefits as the mainstream card, but with a much higher APR of 34.9% (variable).
This card is more suited to shoppers with a poor credit score, who may find it more difficult to be accepted for other credit cards.
Six months’ interest-free spending
The offer will give new customers six months 0% interest on purchases if you sign up to either credit card before 28 April. It excludes all cash advances and balance transfers.
This means you won’t be charged any interest on purchases for six months, but to really benefit you’ll need to steadily repay the debt before the promotional period ends, otherwise you’ll be charged interest on the remaining balance at the card’s standard APR.
To keep the 0% promotional rate for six months, you’ll have to continue to make the minimum monthly repayment, stay within your credit limit and not breach any terms of your agreement.
How to use Asda Rewards
Shoppers will be rewarded through Asda’s loyalty programme, Asda Rewards.
To get the cashback you've earned, you’ll need to download the free Asda Rewards app and link it to your credit card.
Your Asda Pounds can then be spent by moving them to your Cashpot, where they can be converted into an Asda voucher. Vouchers can be scanned at the checkout on your mobile.
The app also has other ways you can earn rewards. For example, shoppers can earn Asda Pounds by scanning items, buying star products and completing ‘missions’, such as buying a certain number of items from one department.
- Find out more: Asda Rewards security change
What’s in the small print?
You can only earn cashback on certain types of purchases, including food, drink, George clothing, fuel, and other services such as Asda tyres and Asda Opticians in-store.
You can’t earn rewards on things like travel money, cash withdrawals, cash advances, or cash alternatives such as cryptocurrency.
The good news is that you can have additional card holders who can also earn Asda Pounds, maximising your potential for earning rewards.
Any Asda Pounds that have not been added to your Cashpot will expire if you don’t use your credit card for 12 months.
How do other supermarket credit cards compare?
There are a number of other supermarket credit cards that reward your spending with points or cashback.
In the table below, we’ve compared how Asda Money’s latest offer stacks up against those that offer a period of interest-free spending on purchases, ordered alphabetically.
| Credit card | What you can earn in rewards | Interest-free period on purchases | Representative APR |
|---|---|---|---|
| Asda Money credit card | 1% cashback on Asda purchases; 0.3% cashback spent elsewhere | 0% on purchases for up to six months | 25.9% |
| John Lewis Partnership credit card | Five points for every £4 spent in John Lewis or Waitrose online and in store; one point for every £4 spent elsewhere | 0% on purchases for up to six months | 27.9% |
| M&S Shopping Plus credit card | One point per £1 spent in M&S; one point for every £5 spent elsewhere | 0% on purchases for up to 18 months | 23.9% |
| Sainsbury’s Nectar credit card | Up to three points per £2 spent in Sainsbury’s, Argos, Habitat & Tu clothing when you pay with a Sainsbury’s Bank credit card and scan your Nectar card or app; one point per £5 elsewhere | 0% on purchases for up to six months | 22.9% |
| Tesco Bank All Round credit card | Five points for every £4 spent in Tesco or on Tesco fuel (excluding Esso); one point for every £8 spent elsewhere | 0% on purchases for up to 12 months | 22.9% |
Correct as of 13 April 2023
While the points on offer and interest-free periods differ slightly, ultimately it’s worth remembering that the best reward credit card for you depends where you do most of your shopping.
If you consistently shop at one particular supermarket, it may make sense to earn rewards by taking out the relevant credit card, whereas if you tend to shop at a few different stores, you may be better off with a cashback credit card that's not linked to any one retailer.
- Find out more: best cashback credit cards
Could you be better off with an interest-free credit card?
The promotional six-month 0% purchase offer should not be the sole reason you sign up for this card; rather, the Asda Money credit card is best suited to those who want to earn rewards on their shopping.
If you need to spread the cost of a big purchase, there are other interest-free credit cards available on the market that offer a much longer interest-free period.
For example, the longest interest-free period on the market right now is offered by Tesco Bank at 24 months, with an APR of 37.7%.
This will give you more time to pay down the debt before the promotional period ends, after which you'll be charged interest at the APR.
- Find out more: best interest-free credit cards
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Listen nowTop tips for picking a new credit card
1. Think about what you want to use it for
Do you need it to reduce debt? Are you planning on making a big purchase and want to spread the cost across a few months? Are you going on holiday and want to use your credit card abroad?
Each of these scenarios are suited to a different type of credit card, so make sure whichever card you go for offers the right features to suit you.
We've set out some motivations behind getting a new card in our guide to the different credit card types.
2. Check our reviews and recommended providers
If you’re looking to take out your first credit card, or want to switch, check out our best and worst credit card providers to see how real customers rate their credit card provider, and the ones that are Which? Recommended Providers.
You can also have a look at our credit card company reviews for more detail on how customers rated brands for their services.
We've partnered with Experian to help you find the right credit card.
3. Do an eligibility check
Before you apply for a credit card, it's a good idea to carry out an eligibility check.
Eligibility checkers are a quick way to gauge whether you're likely to be accepted for a credit card without having to fill out a full application – and these checks won’t appear on your credit report.
You’ll have to enter a few details about yourself, and you should get an answer in a few minutes.
Many credit card providers have an eligibility checker on their website.
If you apply for a credit card, and then get rejected, it will be noted on your credit file and could impact your credit score.
- Find out more: how to check your credit score for free
