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Lloyds Bank offers new 0.5 percent cash back credit card - how does it compare to others?

Daily Express logo Daily Express 01/08/2021 Patrick O'Donnell

For example, if a new customer was to spend £400 per month on expenses and £1,000 on an expensive one-off purchase, they would earn £19 in cashback.

This hypothetical figure does not include any introductory cashback bonus on offer through the card.

There is no cap on how much card holders can earn, with customers also eligible for a £20 bonus if they spend £1,000 in the first 90 days.

It is important to repay the balance on all cashback and reward credit cards each month, in order to avoid paying interest, which will usually wipe out any bonuses earned by the card holder.

Any cashback which is earned over the calendar year will be added to a Lloyds customers' credit card account the following January, as well as any cashback which has been earned over this time.

Earners will receive the cashback credit card's £20 bonus in their accounts until the following January, alongside any cashback earned.

However, if the bonus threshold is reached during the time period, it will automatically appear on a customer's cashback balance within 12 days.

Cashback can be earned through the purchase of everyday items, such as groceries and coffees, including through online and contactless payments.

However, cashback can not be earned on balance or money transfers, cash withdrawals, gambling transactions, any account interest or charges, payments to current or savings accounts, and payment protection transactions.

The bank's new credit card offering does charge 19.9 percent APR, yet it does include any monthly or yearly membership fees.

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a close up of a device: Credit cards: A few cards © GETTY Credit cards: A few cards

Repayments can be made through Lloyds Bank, using one's debit card or by setting up a regular direct debit to pay it off.

As it is a Mastercard, the card is easily usable across all UK retailers, however non-sterling charges will accrue if used while travelling abroad.

Any credit limits and interest rates introduced by the bank are subject to an assessment of an individual's creditworthiness and personal circumstances.

Customers can be eligible to apply for the Lloyds cashback credit card if they are a UK resident, who is over the age of 18 and has a regular annual income.


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Applicants will be rejected for the card if they are a student, unemployed, have any bankruptcies or court judgments on their credit file, and if they have been declined for a Lloyds Bank credit card within the last 30 days.

Many banks and building societies offer a similar product to Lloyds' new cashback credit card.

However despite the bank's generous offering to consumers, two American Express (Amex) cashback credit cards are able to beat it by a higher rate of annual cashback into a customer's credit card account.

The Amex Platinum Cashback Everyday is available to the public for no fee at 22 percent rep APR.

Among its bonuses are five percent cashback within the first three months of up to £100.

graphical user interface, application: Credit cards: Contactless payment © GETTY Credit cards: Contactless payment

After this period, the card offers 0.5 percent cashback on up to £10,000, followed by one percent cashback on spending over £10,000.

For example, if someone was to spend £115 in the first year, they would earn £25 in cashback after.

Furthermore, the Amex Platinum Cashback is available at 27.3 percent cashback, however costs £25 a year,

Bonuses include five percent cashback for the first free month on purchases up to £125.

After this time, 0.75 percent cashback is gained on up to £10,000 with 1.25 percent cashback on any purchases over this amount.

Similar to Lloyds Bank, cashback is paid annually into customers accounts for both American Express cards.

Britons are always encouraged to thoroughly review their financial situation before taking out a credit card.

Repayments are particularly important and these should be kept up with to ensure debt is managed efficiently.


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