Savvy shoppers can save a packet this Christmas

Consumers should make the most of the credit and loyalty card deals during the festive season, to make sure they earn extra bang for their buck, according to MoneySuperMarket.
 
With Christmas just over a month away, the comparison site looked at the array of cashback, retailer reward and store loyalty cards currently on the market in a bid to help consumers save on their spend. A number of providers offer cards which not only come with great benefits, but also give good annual cashback or rewards.
 
Cashback cards
 
There are a number of cashback cards currently on the market, which allow cardholders to cash in on their spend. For example, the American Express Platinum Cashback Card has a representative APR of 18.7 per cent (based on an annual fee of £25), and shoppers can earn a substantial five per cent cashback on up to £2,500 of purchases in the first three months, or 1.25 per cent thereafter, meaning cardholders could earn a total of £218.75 cashback by spending £1,000 per month during the first year. The Asda Money Credit Card has the lowest representative APR of 14.9 per cent and offers zero per cent for six months on purchases over £200 through Asda Direct and one per cent cashback on all Asda shopping.
 
Retailer reward cards
 
Many retailers offer specific reward cards which are worthwhile for those who tend to shop at the same place regularly. Consumers earn points when they use their card, and double points when they use it for purchases in the provider store, which are then converted into vouchers which can be spent in store. Shoppers who spend £500 a month on Sainsbury’s Nectar Card Credit Card could earn a total of 12,000 points, which is the equivalent of £200 to spend in store.
 
Store loyalty cards
 
Similarly, a variety of shops provide loyalty cards, to reward their customers when they spend in store, without charging any fee. Shell’s Drivers Club Card allows motorists to accumulate points on their petrol spend, to then redeem back when they top up their tank with Shell again, and when people with a Costa Coffee Club Card collect points through Costa purchases they can claim them back later against any food or drink purchase in store.
 
Kevin Mountford, head of banking at MoneySuperMarket, said:“Christmas is coming and with that also comes the need for consumers to splash their cash on presents and all the other trimmings. For many Brits, it marks the most expensive time of the year, and so it is vital that people manage their finances in the best way that they can. There are a number and range of credit cards which can give consumers the most for their money.
 
“While it is important not to borrow for the sake of it, being savvy and using a product which will actually earn you rewards, discounts or cashback from spend you would have made anyway, is a good way of making your money go further. Cashback cards are a good way of maximising this spend, especially if they take advantage of introductory offers and use the card for big ticket items. However, these often come with high interest rates, which can negate the amount of cashback rewarded, so cardholders must make sure they pay off the bill each month. Regular shoppers can really benefit from retailer reward cards, but again it is important to be wary of the interest rates on these so that you don’t rack up a huge bill at the end of the month. Store loyalty cards are always great, and by collecting points throughout the year and redeeming them at Christmas time people can ease the burden of the big festive spend. Many retailer credit cards offer maximum rewards and spending within the store, so in order to make the most of these cards you have to be a regular shopper.
 
“With all these things, the key is to work out the type of card most suited to your needs, whether you use your card for travel, motoring, everyday shopping or just treating yourself or others.A comparison website can help you trawl through the many offers on the market, so that you find the right one, but with Christmas fast approaching you need to be quick and allow time for the application to be approved and the card to be received.”