As with all cashback and reward credit cards, make sure you pay back the balance in FULL each month to avoid interest which can often ruin any bonuses you’ve earned – and never use cashback and reward cards as an excuse to spend too much. For more information, see our Guide to Credit Card Rewards.
This is how the new Lloyds credit card works
Here are the key features of Lloyds’ new “Cashback” credit card, which can be used by both existing Lloyds customers and non-Lloyds customers if you meet the lending criteria:
- Earn 0.25% cashback on all expenses up to £ 4,000 within a calendar year and 0.5% cashback on all expenses over £ 4,000. Any cashback that you earn during a calendar year will be automatically credited to your credit card account the following January and used to settle your balance.
- Receive a bonus of € 20 if you spend € 1,000 in the first 90 days of card membership. If you hit the threshold, the bonus will automatically appear on your cashback balance within 12 days of the 90-day period but you won’t receive the money until the following January along with any other cashbacks you have. accumulated on your card account.
- The card has no monthly or annual membership fee, but costs 19.9% APR. So make sure you pay back the full amount every month.
- It’s a Mastercard which means it should be widely accepted by UK retailers. However, you should not use the card abroad as you will incur transaction fees in other currencies. The cheapest way to spend money on vacation is using the right plastic – check out our guide to top travel credit cards for several no-fee options.
Comparison of the Lloyds cashback card
Several vendors offer cashback credit cards that reimburse holders a percentage of their expenses when they use the card. Lloyds’ new offering will make it our best buy, but it can be beaten by two American Express (Amex) cashback credit cards that add a higher annual cashback rate to your credit card account.
The following table shows how all three cards stack up. Note, however, that not all retailers accept Amex.