The latest news to help you get the most from your credit card.
Here’s my monthly update sharing changes for leading UK credit cards, as well as some of the relevant articles you might have missed on the blog.
December’s credit card update video
I go into more detail on some of this month’s updates in this video.
December’s credit card news
Credit card interest rates reach 23-year high
According to Bank of England figures quoted in The Guardian, the average credit card interest rate is now 21.49% APR. That’s the highest since December 1998. And it’s at a time when base interest rates are at an all-time low of 0.1%.
More increases are on the way. American Express will push rates up on cards from 22.2% to 24.5% in February. They say it’s to fund the offers and promotions it provides. And others could well follow with their own hikes.
Of course, I’m always at pains to say clear your credit card completely every month so you don’t get charged interest. Setting up a direct debit for this to pay the full amount will mean you don’t forget.
However, there will still be a huge number of people who have overspent and can’t afford to do this. Or have already built up debts.
If this is you, then try to shift that debt to 0% cards, or at least look for a low APR. If you need to borrow, look at 0% purchase cards or cheap personal loans.
Avios to Nectar transfer issues
A lot of you with cards earning Amex Reward points or Avios points will be planning on transferring them to Nectar points. I’ve had a few readers get in touch saying they’ve had issues converting Avios to Nectar, with the site and call centre not working.
I looked last night and it was working, but today the site is down again. And some are worried it won’t return.
I got in touch with the BA press office (who manage the conversion), and they said it’s just technical issues and it will come back as before.
Creation close cards for Curve users
Something worth sharing with you is news from Creation Finance, which issues the IHG Rewards Club card, who has closed credit cards for some customers who used it via Curve.
It seems they stopped allowing people to use the cards via Curve in September, but then in October and November it began cancelling the cards. Apparently this was down to misuse. HeadForPoints wrote this could be down to people using Curve to add money to NS&I savings accounts via the credit card, and earning loyalty points as a result.
Some people haven’t had refunds on the fee, but Which? reports that customers should be able to request a pro-rata refund on this. There’s a lot more detail on how customers are dealing with the cancellations over on the Curve community board.
Amazon ditches Visa credit cards
From 19 January 2022 you’ll no longer be able to pay on Amazon with a Visa credit card. Visa debit cards will still be accepted, as will any Mastercard and American Express.
The reason, according to Amazon, is too high fees. Though it seems weird that Mastercard and Amex haven’t been ditched too. It could all be a negotiating tactic, and it’ll go back on the decision if Visa reduce their fees.
And of course, Amazon does have a Mastercard and a business Amex you can get, so it could just be a push to get people to sign up to those!
There is an offer running on Amazon to add a non-Visa card to your account and get a £10 voucher (£20 if you have Prime). I’ve written about a potential hack if you don’t currently have a Visa credit card on your account here.
Featured investing offer
Customer rating
3.8/5
- Offerfree £50 in fractional shares*
- Annual fee£0
- Investment stylesShares, funds or ready-made portfolios
- Minimum deposit$50
- FSCS Protected? Yes
- Interest on uninvested cash 3% on balances up to $50,000, 3.8% on balances over this
- Fractional shares Yes
- Foreign exchange fee 0.7%
- Fund fees If you invest in funds, you'll have to pay fund fees, which cost on average ~0.16% per year, with additional market-spread effects up to 0.05%
- Offer You need to sign up, verify your account and deposit at least £200 to get the free assets. ISA deposits aren't included in the £200 requirement to get the offer.
- Authorised and regulated by the Financial Conduct Authority Yes, FRN 583263
- Risk warning The value of your investments may go up or down. Your capital is at risk. ISA powered by Moneyfarm. ISA rules apply. UK residents only.
- Accounts available General investment account, stocks and shares ISA (additional fees apply)
Get the best of our money saving content every week, straight to your inbox
Plus, new Quidco customers get a high paying £18 welcome offer
Amex Shop Small is on
As expected, the American Express Shop Small promotion is back until 13 December 2021. You can earn £5 back for each £15 you spend at up to five participating small businesses.
That five shop cap means the most you can make is £25 – a big difference from recent years where it could be ten lots of £5. And as with the extra edition in the summer, you’ll notice the increased spend by £5 from the usual £10.
Here are all the details you need in my extensive Shop Small article showing how to boost your return.
Free Apple streaming for Barclaycard customers
Good news for anyone with or who opens a Barclaycard. You can get some free Apple streaming services. If you’ve not had a subscription to each individual one before you’ll get five months free. If you’ve had the free trial and no longer pay, you’ll get:
- Apple Music for two months.
- Apple News+ for four months.
- Apple Arcade for four months.
- Apple TV+ for five months.
I got an email with details, so check for that in your inbox. Once you have claimed the codes they expire on 19 August 2022.
This month’s best credit cards
As always when talking about credit cards the best credit card for you will depend on your credit report and why you need one.
Make sure you read my rules for having and applying for a credit card. You’ll also find my list of the latest offers in the same article.
But assuming you’ve got a great credit report, don’t need one to clear existing debts and will clear the balance completely each month, these are my top picks:
Check out my list of the best credit card offers and promotions
Our podcast
Listen to Cash Chats, our award-winning podcast, presented by Steve Alderton and Editor James Andrews.
Episodes every Monday.
