American Express have relaunched their Platinum Cashback credit card. It now pays 2.5% cashback for the first 3 months then 1.25% on all spending - with no maximum!
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American Express - Platinum Cashback Credit Card
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What's the deal?
American Express have revamped their famous Platinum Cashback credit card.
Previously a favourite because of the 5% introductory cashback rate it paid on purchases for 3 months, the card now pays more cashback on an ongoing basis instead.
There's still an introductory bonus that applies for 3 months, but it has been reduced to 2.5% (although you can still earn up to a maximum of £100).
However, after this the card continues to pay an ongoing, flat-rate of 1.25% cashback on all purchases with no maximum so the amount of cashback you can earn is unlimited.
What's more, providing you spend more than £10,000 on your card in the first year, Amex will increase the cashback rate they pay on your purchases to 2.5% for your anniversary month. They'll also do this every year that you continue to spend more than £10,000 on the card.
All together this could boost the earning potential of your credit card significantly - particularly if you use the card to pay for the majority of your day to day purchases.
What makes it great?
The 2.5% introductory cashback rate paid on the Amex Platinum Cashback card still means it ranks in the top 3 cashback cards for those who are looking to make a large, one off purchase.
However, the 1.25% ongoing, flat cashback rate paid on all spending thereafter is what makes this card market leading as it beats competitor offerings hands down.
Who would it suit?
The Amex Platinum credit card is available to those over the age of 18, have a permanent UK address and bank account, and earn over £30,000 a year. You'll also need to have a good credit history free from defaults, arrears, CCJs or missed payments.
You can apply for the card if you're self employed but you'll need to have been working for yourself for at least a year to be considered.
However, it's likely to be most suitable for individuals who are able to clear their credit card balance each month, otherwise the cashback earned is likely to be dwarfed by the relatively high rate (14%) the card applies to purchases.
What's the catch?
Unfortunately, the catch comes in the form of a £25 annual fee - this is a new addition as the card was previously free. However, this shouldn't mean you rule it out.
If you intend to spend a significant amount on your cashback credit card on a regular basis then the amount of cashback you earn is likely to outweigh the annual fee you need to pay.
For example, if you spend £1,000 on your card a month (clearing the balance in full as you go so you're not paying any interest), you'll earn £163 cashback in your first year. Even with the £25 fee taken into consideration this still represents a better return than if you'd have used one of the other top cashback cards currently available.
That said, if you are looking to make a larger, one off purchase, or want a cashback card for occassional spending then this card isn't likely to be the right one for you.
What's the alternative?
The Capital One World Mastercard now offers the market leading introductory cashback rate available on a credit card, paying 5% for 3 months up to a maximum of £100.
However, the rate does then drop to just 0.5% for any spending up to £5999.99 a year, 1% for amounts between £6,000 and £9,999.99 a year, and 1.25% for any amount you spend in excess of £10,000 a year.
That said, if you're likely to spend a significant amount on your card each month, or looking to make a one of large purchase, then this card may work out more profitable for you than the Amex alternative.
If it's predominantly groceries and fuel you put on your credit card then either the MBNA Amex Cashback card or the MBNA Visa Cashback card may be more suitable.
The former pays a rate of 1.5% on supermarket shopping and fuel, and 0.75% on all other spending. While the latter pays cashback at a rate of 1.25% on supermarket shopping and fuel, and 0.5% on all other spending.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
