Home Credit Barclaycard refunds annual fee on its cashback card

Barclaycard refunds annual fee on its cashback card

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www.barclaycard.co.uk

Anyone applying for the Barclaycard Cashback credit card before December 2 will have the £24 annual fee refunded.

The battle between credit card providers to attract new customers in the run up to Christmas is gathering momentum. Barclaycard, which earlier this week upped the 0% interest free period on one of its cards to 24 months, is now targeting those shoppers who want to earn rewards for their spending.

Those applying for the Barclaycard Cashback Credit Card before December 2 will get the first year’s £24 annual fee refunded. Applications for this or any other credit card need to be in soon if you want to be sure of having the card in time for Christmas spending.

Christmas cards

The Barclaycard Cashback Credit Card comes wih 6% cashback on the five biggest purchases each month in the first three months, capped at £120. After the first three months, this goes down to 2% on the five largest purchases each month with 0.5% on everything else as long as you make 15 purchases a month.

Each year, there is also 4% cashback on the top five purchases in a year. The interest rate is a high 19.9% which is why this card – and indeed any reward card – only works if you pay the balance off in full.

What’s different with the Barclaycard from some other reward cards is that it doesn’t base the rewards on where the spending takes place. Another alternative in a similar vein is the American Express Platinum Cashback card which has 5% cashback for three months capped at a maximum of £125, with 1.25% after that. This has a £25 fee.

Similarly, the Capital One Aspire World card gives you 5% (capped at £100 cashback) in the first three months with a tiered rate up to 1.25% based on your spending after that, but there’s no fee. The Santander 123 cashback credit card gives 3% on petrol, diesel and train tickets; 2% at department stores and 1% at supermarkets. It has a £24 fee.

Card wars

The Barclaycard offer is the latest in the particularly aggressive battle for credit card customers although up until now, most of the competition has been for the lucrative balance transfer business. Barclaycard has already won the fight – for now – by offering the longest 0% balance transfer deal at two years.

MBNA just now launched a new version of its Platinum Extended Balance Transfer card which now has 22 months at 0% on balance transfers and 0% on purchases for three months. There is a balance transfer fee of 2.85% with a minimum payment of £3.

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