Amazon credit card to close: the best reward cards to switch to
With Amazon's reward card ending, here some top alternatives to switch to.
Time is running out for Amazon credit card users to collect loyalty points at the online retail giant.
MBNA issues the Amazon credit card, but has written to cardholders to inform them that its relationship with Amazon will be finishing at the end of September. As a result, cardholders won’t be able to earn Amazon loyalty points, which can then be spent on the site, from that date onwards.
So if you’re an Amazon cardholder, it’s time to look elsewhere for a new rewards credit card.
What happens to my points?
With the Amazon credit card, you earn two Amazon loyalty points for every £1 spent on the site and one point for every £1 spent everywhere else. Once you reach 1,000 points, you are sent a £10 Amazon gift certificate.
However, when the Amazon/MBNA relationship concludes at the end of September, cardholders will be sent a certificate for the value of their current points.
The cards to switch to
Rewards credit cards are great for people that clear their balance in full each month, offering a nice added benefit for using the card for your usual spending.
Just remember to always pay off the bill in full, otherwise the interest you’re charged will soon wipe out the value of the rewards you accrue.
So which cards could Amazon cardholders consider?
American Express Preferred Rewards
The American Express Preferred Rewards card is a little different in that it’s a charge card rather than a credit card. That means the full balance MUST be cleared in full each month.
You earn one Membership Rewards point for every £1 spent on the card, though this jumps to two points when you spend on travel and at petrol stations of major supermarkets in the first 12 months.
What’s more you get 20,000 points as a welcome bonus so long as you spend a total of £2,000 on the card in the first three months.
You can exchange 5,000 points for a £25 Amazon gift card, so those bonus points are worth £100 in Amazon vouchers alone.
There’s plenty of other things you can exchange those points for though, including flights, hotels and days out.
Ordinarily the card comes with a £125 annual fee, though American Express is currently waiving the fee for the first year.
Supermarket credit cards
All the major supermarkets have their own credit cards now, which allow you to build up loyalty points in their relevant schemes. You can’t cash them in with Amazon unfortunately, but you do have plenty of other options.
The Tesco Clubcard for Purchases credit card gives you five Clubcard points for every £4 you spend in-store and one point for every £1 spent everywhere else. It also comes with a 19-month 0% period on your spending.
Sainsbury’s Bank has a range of credit cards which allow you to collect Nectar points, including the 16-Month Nectar Purchase credit card. You get two points for every £1 spent on Sainsbury’s fuel, double Nectar points on your Sainsbury’s shopping and one point for every £5 spent elsewhere. And as the name suggests, you benefit from a 16-month 0% period on your spending.
For more on these cards, and other forms of rewards credit cards, check out The best rewards credit cards.
Cashback cards
Of course, you could go for a cashback card which rewards you for your spending in cold, hard cash. Then you can spend your rewards at Amazon or wherever you want!
For example, there’s the American Express Platinum Cashback credit card, which pays 5% cashback on your first £2,500 of spending in the first three months, then a flat rate of 1.25% after that. And to celebrate your anniversary with the card, each year you get a doubled rate of 2.5% for one month so long as you spent more than £10,000 in the previous 12 months.
The card comes with an annual fee of £25 to take into consideration though.
For more on the other cashback cards on the market today, check out The best cashback credit cards.
Cashback websites
If you are desperate to be rewarded for your spending with Amazon vouchers, then don’t forget cashback websites. Both Quidco and TopCashback allow you to convert your cashback into Amazon gift certificates. What’s more, you get a better return this way.
With TopCashback the value of your cashback is bumped up by 5% when you choose to receive it in Amazon vouchers rather than cash, while at Quidco you pocket a 7% bonus.
Pay for your spending with a rewards or cashback card, and you basically get rewarded twice for a single bit of spending!
More on borrowing:
The best cashback credit cards
The best 0% balance transfer credit cards
The best 0% purchase credit cards
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