New AA reward plus credit card stretches the miles

A brand new credit card, that aims to help drivers manage their petrol and diesel buying as well as earn points on everything else they buy, has been trial launched by AA Financial Services.

At a time when petrol and diesel sales have slumped because of high prices, the AA Reward Plus Visa card uniquely offers 3 per cent cash back on all fuel purchases and 0.5 per cent on everything else.

Every time the card is used, points are awarded that can be redeemed for cash or for a wide range of other goods and services, including AA products, insurance and membership.

The card offers 19.9 per cent (variable) representative APR on card purchases.

Mark Huggins, director of AA Financial Services, believes the card is a first in focusing on fuel spend but also offering points earning potential on purchases of anything else.

"It's not complicated by confusing spending tiers or limited periods. The card delivers 3 per cent back on fuel up to 2,000 spend per year - that's the equivalent of an average 60 fill-up. It's more than the national average annual spend on petrol of about 1,700. But once that ceiling is reached, the card continues to earn points at the standard 0.5 per cent rate that applies to all purchases.

"As soon as the first anniversary of taking out the card is reached, the fuel earning rate returns to 3 per cent."

According to the AA, the soaring price of fuel has led to a drop in sales of one billion litres over the first three months of 2011 while the number of visits drivers make to fuel stations has also fallen; by 12 per cent since August last year.

"It's clear that families are cutting back on fuel purchases, household expenditure or both as they struggle to make ends meet," Mr Huggins adds.

"Our new card aims to help motoring families stretch their just a little further. After all, using the 60 cash-back for a fill-up will take the average petrol-driven saloon car at least 300 miles."

The card is available only to AA members but as Mr Huggins points out: "With 15 million members nearly half the motoring population are AA members. All that's needed is a personal membership number to apply and, if a non-member applies, they could more than pay for their membership fee with points earned by using the new card."

AA Reward Plus can be applied for online at theAA.com.