Spend £5,000 and earn £60 of gift vouchers
CREDIT cards that give users either cashback or rewards for spending are not as generous as they once were, but card issuer MBNA is bucking the trend.
Tomorrow, it will confirm it has joined forces with FTSE100 giant Intu Properties to launch a new card that gives shoppers the opportunity to earn up to £60 of gift vouchers in the first year.
The amount of vouchers, which cardholders will be able to use at Intu owned shopping centres, will depend on how much they spend on the card.
So, if they spend £250 in the first 90 days of taking out a card, they will receive a £20 gift voucher. To receive £60 of vouchers, they will need to make card purchases in the first year of £5,000. Card purchases can be made anywhere, not just at Intu shopping centres.
The card can be used in conjunction with a store loyalty card – offered by the likes of Boots, M&S and Tesco – meaning cardholders will obtain rewards on both cards, known as ‘double-dipping’.
Intu will also offer cardholders a one-year free membership of the Gourmet Society, enabling them to benefit from discounts on restaurant meals. Intu runs some of the country’s most iconic shopping centres including Lakeside in Thurrock, the Arndale in Manchester and Eldon Square in Newcastle. More than 35million people visit Intu centres every year.
Andrew Hagger, financial expert at advice company Moneycomms, says the new card ‘stacks up’ as a rewards card. But he says it will only be worthwhile for those who have the discipline to clear their card balance every month.
Although there will be no interest charges in the first year, any outstanding balance will then attract an interest charge of 16.9 per cent. He says: ‘If you struggle to pay off the card, the benefit of the rewards will soon be wiped out after the first year. But if you’re disciplined and shop at a local Intu centre, it’s worth having.’
Since the end of last year, card issuers have been axing or reducing cashback and rewards schemes. According to financial product scrutineer Moneyfacts, the best cashback cards are now provided by American Express, Asda Money, the AA and Nationwide Building Society.
The best rewards cards include those from retailers Debenhams and John Lewis.