American Express may have caught the attention of shoppers and takeaway lovers this week after it announced that one of its credit cards is now offering a delicious cash-back deal.
Amex will charge Preferred Rewards Gold credit card holders £10 each month when ordering from Deliveroo.
Cardholders will be able to receive up to £5 twice a month for Deliveroo purchases charged to the card.
New and existing American Express Preferred Rewards Gold cardholders can take advantage of an exclusive new benefit with Deliveroo.
To take advantage of this benefit, Gold Card members simply need to register by saving it to their card via the Amex app or their online account by May 6, 2023.
This means that over the course of a year, a cardholder can get up to £120 cashback based on their Deliveroo purchases alone.
The boost to the gold rewards card came hours after the card provider announced that it would lower the amounts customers would earn using its cash back credit cards.
Starting August 4, cashback rates will be reduced by up to 50 percent in some cases.
The cashback discounts relate to the free Daily Cashback Platinum Card and the Platinum Cashback Card which comes with an annual fee of £25.
Its free customers currently receive 1 per cent cashback when spending over £5,000 a year, but under the changes any spend of up to £10,000 will only earn 0.5 per cent.
Payment card holders will get 0.75 per cent cashback when spending up to £10,000, down from the current rate of 1 per cent.
The new Deliveroo feature may influence some cashback card members as well as new joiners to seriously consider Amex’s Preferred Rewards Gold credit card.
|Card||Old £5,000 cashback||New cashback of £5,000||Old cashback of £10,000||New cashback of £10,000||Old cashback of £20,000||New cashback over £20,000|
|Platinum cashback every day||£25||£25||£75||£50||£175||£150|
|The Santander All-in-One MasterCard||Unavailable||-11 pounds sterling||Unavailable||£14||Unavailable||£36|
|Barclaycard Rewards credit card||Unavailable||£12.50||Unavailable||£25||Unavailable||£50|
|Source: This is Money / Head for Points (net numbers, including fees)|
The Deliveroo offer complements a range of other benefits that come with the Gold Card such as access to international lounges and travel inconvenience insurance.
It’s also really one of the best when it comes to rewarding spending, and doing so in the form of American Express points.
These points can be converted into airline miles, hotel points or retail gift cards through Amex itself.
As a result, this is the top pick in this Money guide to the best credit cards out there – but you have to play by the rules, and pay off your balances as you go, because of the high interest they charge.
It comes in at a rate of 22.2 per cent on purchases but a representative APR of 56.6 per cent, thanks to an annual fee of £140 payable after the first year.
New card members can also earn 20,000 points if they spend £3,000 in the first three months which is enough to get a £100 Amazon gift card.
“Amex has been proactive in looking for new ways to offer benefits to cardholders at a time when it was difficult to capitalize on its traditional franchises centered around airport lounges, dining out and events,” said Chris Lilly, credit specialist at the Centre. Personal finance comparison site, Finder.
The Deliveroo offer reaffirms that Amex is always looking for diverse sweeteners to help retain existing customers and attract new ones at the same time.
This is a card suitable for people who will use it frequently and really engage with all the perks a card can offer, but won’t carry a balance from month to month – instead always paying their monthly bill in full.
This is a card suitable for people who will use it frequently and really engage with all the perks a card can offer, but won’t carry a balance from month to month.
“Those who have a balance from month to month have a good chance of paying more in interest and fees than they earn in rewards.”
Should you apply?
Choosing the best credit card like many things boils down to whether the benefits on offer are the best fit for your circumstances.
Perhaps you’re looking for a card to clear debt — in which case, a balance transfer credit card may work best.
This allows customers to pay off debt by transferring the entire debt to the new card, often with the promise of 0 percent interest for a set period of time.
Or similarly, you might be optimistic that with the vaccine rollout in full swing, you’ll soon be able to make up for lost time by vacationing abroad, and therefore need a credit card that’s more convenient for spending abroad.
But if you decide a rewards credit card is for you, a lot will depend on how much money you spend and how you spend it.
For example, there are cards geared toward flyers, supermarket spenders, and fitness fanatics.
The most appropriate reward card will depend on how someone spends their money, so if they’re used to using their credit card, it might be worth taking a step back and looking at the different retailers that make up their spending pattern, said Rachel Springol, financial expert at Moneyfacts.
The Amex Gold Card is our top rewards pick, but beware the £140 fee after one year
At this point, consider existing reward or cash back cards available to see if they can take advantage of a scheme instead of using that credit card to spend.
“However, significant spenders clear their balance before interest is applied as this can wipe out any interest.”
One of the main issues for those considering an Amex Gold Card is the £140 annual fee that you will start paying after the first year.
For those looking for a cheaper rewards or cashback card, there are other options out there.
“Setting aside the ultra-elite credit and debit cards on the market, the Gold Preferred Rewards Card probably offers the most diverse and attractive perks system,” said Lilly.
For those who can’t afford the fees, Amex offers alternatives like the Platinum Cashback Everyday Card.
“While for those hoping to take one last vacation abroad in the coming months, Santander’s All in One offers cash back plus currency exchange with no fees that could be a great alternative.”
You can learn more about the best credit card deals for purchases, rewards, holidays, and debt clearance here.
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