American Express has raised the cap on the cashback you can earn in the first few months with its Platinum Cashback credit card.
The cashback cap on the American Express Platinum Cashback Card has been increased, meaning you can now earn up to £125 in cashback during the first three months.
The card boasts a rate of 5% cashback during this initial period, but previously capped the cashback at £100. Now if you spend £2,500 during your first three months, you'll earn the maximum cashback of £125.
Higher cashback
After the initial three months of 5% cashback, the Platinum card then pays a flat rate of 1.25% on future purchases and 2.5% in the anniversary month of the card – if £10,000 has been spent on it annually.
The one drawback is the £25 annual fee. However, with the increased cashback rate, this is effectively wiped out if you spend enough.
The interest rate is 18.7%, which is slightly below most cashback cards, and you need to have an annual income of at least £20,000 to apply for it.
How does the American Express card compare?
If you’re put off by the fee, or you’ve already got an American Express card, there are other options available.
The American Express Everyday Platinum Card, for example, pays 5% cashback in the first three months and then a tiered level, depending on how much you spend on the card. It has a slightly higher APR of 19.9% but doesn’t have a fee.
Another option is the Barclaycard High 5 Cashback Visa. This pays tiered rates of cashback on certain items. This starts at 2% on your biggest five purchases and 0.5% on everything else. This rate increases to 6% on your top five purchases in the first three months. The drawback here is the annual fee of £24.
Our comparison tables have more information but here I’ve listed five excellent cashback cards:
|
Card |
Cashback |
APR |
|
5% on purchases up to £2,000 for the first three months (up to £100). Up to 1.25% afterwards. |
19.9% |
|
|
2% on your top five purchases and 0.5% on everything else. 6% cashback on your top five purchases for the first three months. Annual fee of £24. |
24.8% |
|
|
1% cashback at the supermarket, 2% at department stores and 3% on petrol and travel. Fee of £24 (except for those with a 123 current account). |
22.8% |
|
|
5% on purchases up to £2,500 for the first three months (up to £125). Up to 1.25% afterwards. £25 fee. |
18.7% |
|
|
0.5% cashback on purchases up to £6,000, 1% on £6,000 to £10,000 and 1.25% for purchases of £10,000 and over. |
19.9% |
Cashback credit cards
Cashback cards are a good way to earn money when using your credit card to buy something. If used correctly they can be a way of getting paid free money when using the card.
But if you are late with payments or miss them altogether, the benefits will be wiped out and you could be fined or be left with a black mark on your credit score.
The best way to maximise the amount of cashback you can get is by using the credit card to buy things you would normally use your debit card for. Then set up a direct debit payment to clear the card each month so you’re not missing payments.