Asda Cashback Credit Cards have been some of our favourite rewards credit cards, but they're planning a significant change which might make them less appealing to you going forward.
From 13 April 2018, the rewards on non-Asda, general spending will drop down to 0.2% from 0.5% on the free Asda Cashback card and 1% on the Asda Cashback Plus card. The change does not affect the cashback rewards on in-store Asda spending, which will remain at 1% and 2%, respectively.
We have heard that some Asda cardholders may be considering cancelling their cards as a result of this change. If you're considering doing so, we have a few points to consider first.
Read This Before You Cut Up Your Asda Credit Card
1. Asda cardholders still earn the same 1% or 2% rewards on Asda spending, which are relatively high rewards rates. In terms of grocery rewards programs, it's hard to do much better. For non-Asda spending, consumers can look to other cashback cards that offer higher rewards instead (generally speaking, cashback rewards range from 0.5% up to 1.25%). We'd recommend checking out the American Express Costco TrueEarnings Credit Card (earn 1% to 3%, depending on category), the American Express Platinum Cashback Everyday Credit Card (earn 0.5% to 1% ongoing, depending on spending level) or the Aqua Rewards Card (earn 0.5%; will consider weaker credit ratings).
2. Before cutting up your Asda credit cards, consider the impact it might have on your credit history. This is particularly important if you've held your Asda card for many years. Cancelling a credit card with a long history can adversely affect your credit rating.
3. Anyone wondering if they can move from the paid (£3/month) Asda Plus card to the free Asda card should be aware that this move would require a new application for a completely separate account. Doing so could have a double-whammy negative impact on your credit score—both the hard credit check for the new application AND cancelling an existing card, especially one with a long history, can have a negative impact on your credit score.
If you're a loyal Asda shopper, you may still find great value from their cashback rewards cards. But non-Asda spending might be better off on another cashback card. It will all depend on your individual spending patterns and financial situation.
|Annual Fee||Rewards Rates|
|Asda Plus||£36 (£3/month)|
|Platinum Cashback Everday by Amex||£0|
|Costco TrueEarnings||£0 (but need Costco membership)|