March 2024’s credit card & BNPL news & round-up

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.

March’s credit card & BNPL update video

I go into more detail on some of this month’s updates in this video.

March’s credit card & BNPL news

Santander launches new cashback credit card

You can now earn up to 2% cashback with the Santander Edge credit card – though it comes with a £3 monthly fee which will mean you actually earn less.

The 2% rate is just for the first year, after which it drops to 1%. There’s also a £15 maximum cashback you can earn each month, so in year one that’s only on the first £750 spend, and double that in subsequent years.

Factoring in the fee, as long as you spend £300 a month in the first year you’ll get 1%, then gradually increasing to 1.6%. In year two onwards the most you’ll get is 0.8%.

So ultimately you might make some cash in year one, but after that it’s not as good as the best cashback cards out there. Here’s my full analysis of the Santander Edge credit card.

Yonder adds free tier

Yonder have introduced a fee-free version of their rewards credit card. You’ll lose the travel insurance that comes with the paid version, but it’s still fee-free to use overseas.

You’ll also earn fewer points, just 1 per £1 spent rather than five. The question is, what is a point worth? Well it’s hard to say. Using some examples on the Yonder site, 25,000 points would be worth around £75. So that’s roughly 0.33p. But I’ve also seen that a point is on average worth 0.23p. If we go with the latter then there are other Mastercard and Visa credit cards that beat this.

The other problem is you don’t get to use the points as cash. Instead you redeem them at participating businesses, mainly restaurants and bars. These change every month, and each of these will have different redemption offers – of which you’ll need to have enough points to cover the full offer. And these can be pretty high. You’ll also find the focus is mainly on London, though that should change.

We’ll look into both Yonder cards in more detail in the future, but for now I’d only consider this if you don’t have a UK credit file (they’ll look at other data when applying), or as back up for overseas travel if you don’t want or can’t get the Barclaycard Rewards credit card.

Avios changes value of swap to Nectar

From 11 March 2024 those of you who swapped Avios to Nectar, or Amex to Avios to Nectar, will get see each Nectar point valid at 0.5p rather than 0.66p. It’s a big cut, and the second in 18 months.

For Amex Reward point holders there’s now no point using this hack. Instead you can swap direct to Nectar (if you still want these) or to another redemption option.

For those with Avios points it still gives you a way to use them on things other than flights, but it does effectively make those tickets cost more when using existing points. Here’s more about the Avios to Nectar change.

Amex launches BNPL

American Express are joining the Buy Now Pay Later bandwagon that many banks and payment providers are already on. They’re feature is called Plan It and lets you split payments of more than £100. However, unlike Monzo and Klarna, this isn’t interest free.

The fees work out roughly the same as if you’d paid interest on the sum so there’s little advantage of using this. Here’s our review of Amex Plan It.

Amex pro rata refund update

Last year I reported changes coming that would end pro rata refunds on American Express credit cards. That was then delayed until at least 29 February 2024. Well that date has been and gone, and there’s been no announcement from American Express about when the refunds will end.

It could come in at any time, but it’s worth thinking about whether you want to keep existing cards or cancel them sooner rather than later. This is especially the case for those who have just or are about to trigger the huge welcome offer that have run in the last six months or so.

Just make sure if the card is one that earns Amex Reward Points that you’ve used them or have opened another (free) Amex card that also earns points. Doing the latter will keep them alive until you are ready to redeem them.

If we hear of an implementation date before it happens we’ll of course let you know!

Barclays to take on Tesco credit cards

Last time I shared how Sainsburys’ will be moving it’s banking to third parties in the future – well they’re not the only supermarket to be getting out of direct to customer finance.

Tesco Bank has announced it’s selling it’s credit cards, savings and loans to Barclays Bank. There’s nothing yet on what that means for existing customers, but it does open the door for potential new products from Barclays that earn Clubcard points as there’s a 10 year partnership agreed as part of the deal. We’ll update you when there’s more information.

Also in the news is that Nationwide is taking over Virgin Money. Again, there won’t be any changes in the short term, but over six years the brand will gradually be replaced. Again, more information when there’s something to share.

March’s credit card special offers

Rare Amex Platinum Cashback Everyday welcome offer boost

I don’t often suggest people go for the entry level cashback card from American Express as other options will work out more profitable. But if you are keen to get the Platinum Cashback Everyday card then you can get up to £25 more from the 5% welcome offer. All the details in our Amex deals page.

Last chance for Asda Money card 10% welcome

There’s a huge welcome offer on the Asda Money credit card ending on Monday 11 March. Normally you’re looking at a £20 voucher, but this one could be worth £100.

If you’re a new customer (or haven’t had one of their cards in the last 12 months) and apply by 11 March 2024 you’ll get 10% back on Asda spending over 90 days. This is capped at £100 in total, meaning you’d need to spend £1,000 over those three months to get the full amount. More on the offer here.

After this it’s 1% at Asda, which is decent, but 0.3% elsewhere which can be beaten. Bear in mind the money you earn has to be used in Asda, and there are time limits for swapping the points you earn into vouchers. More on the Asda Money credit card in our review.

Amex Gold: cardholders can get 20% off food

Until 19 May 2024 those with an Amex Preferred Rewards Gold credit card can trigger an offer (go to the rewards tab in your account) that’ll earn 20% back at a decent range of restaurants, including Hawksmoor and Honest Burgers. Other Amex cardholders might find the same offer, though they’ll only get 10% back. Find out other locations here.

Amex business cards: huge welcome boosts

There are increased welcome offers for the two main Amex business credit cards running until 9 April 2024.

The Platinum Business card will give you 80,000 points if you spend £12,000 in three months. Those combined 92,000 points (you’ll earn a point per £1 spent) convert to £460 as vouchers, and you’ll get travel insurance and £200 travel credit. So you should still end up in profit after the £650 annual fee (which will be tax deductible). There are another 40,000 points added if spend in month 14, though by then you’ll have triggered another annual fee.

Over on the Gold Business card, it’s a bonus 40,000 points if you spend £6,000 in three months. Those 46,000 points will convert into £230. This card is free in year one (£195 a year in year two onwards). You’ll earn another 10,000 if you spend £20,000 (including the initial £6,000) in the first quarter and there’s a further 20,000 added if you spend in month 14.

With both cards you need to be a sole trader or small business. You’re eligible if not had ANY Amex card (personal or business) that earns Amex membership points in the last 13 months, less than the standard 24 months.

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.

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: