American Express Credit Card Cashback Rate Increased

The introductory rate on the American Express Platinum Cashback credit card has been doubled, making it the highest cashback credit card currently available.

A cashback credit card returns a percentage of the cash you spend on the card each month.

The new introductory cashback rate has been doubled from to 5%. It’s available for the first 3 months and for the first £2,000 spent on the card, meaning up to £100 cashback can be earned. If you hit the £2,000 limit in the introductory period you will earn cashback at 1.25%.

A loyalty bonus of 2.5% is available during the anniversary month each year, the month you took out the card, as long as you have spent more than £10,000 on the card in the previous 12 months.

The standard cashback rate of 1.25% will be reverted to after the promotional period.

The fee for the card is £25 and the representative APR is 18.5% (variable). The cashback is paid annually.

Find out more on the American Express website.

MoneyHighStreet comments: “Cashback credit cards such as this from American Express or indeed reward credit cards, are well worth considering if you know you are going to be able to pay off the balance on the card each month.

“In this way the cash or rewards you get will positively benefit you – if you don’t pay off the balance the interest charged will invariably outweigh the benefit received.

“Other cashback deals available include The Capital One World Mastercard. This has the same introductory 5% cashback, capped at £100, but once you have reached the limit you don’t earn any further cashback.”

MoneyHighStreet comments: “Using a credit card to provide cash or rewards simply for spending sounds very attractive. It is, but only if you can clear the balance each month.

There are other cards you may be better to consider if perhaps you are struggling with your finances.

“For example, opting for a 0% balance transfer credit card can help with your debt repayments. Be careful though as this is only the case if you know you will be able to repay the outstanding debt during the 0% deal period. If this is not the case, you need to consider other options which may be better.

“If you are concerned about managing your credit limits, another option to consider is a prepaid card. These cards work like pay-as-you-go mobile phones, allowing consumers to load the card with cash which you can use to make purchases. They don’t provide any credit facilities as such – once the balance reaches zero they cannot be used to make further purchases until they have been topped up.

“Many are using prepaid cards to help manage their budget as well as when shopping online.”