American Express Platinum Cashback Card
|Borrowing (Credit Card)
Published 08 November 2009
One of the most generous cashback cards on the market, at least initially. If you repay your balance in full each month consider getting one.
- 5% cashback for 1st 3 months.
- Up to 1.25% thereafter.
- No annual fee.
- No cashback if you don't pay the min monthly repayment.
- High APR, if charged.
- Less widely accepted than Visa.
APR (purch) 19.9%. APR (cash) 27.9%. Late payment £12. See Amex T&Cs for others.
If you regularly use a credit card and pay off your balance in full each month, then why not make a bit of money for doing so?
That's the idea behind cashback cards and this one, from American Express, is one the more generous on the market - with a few caveats.
It's not for everyone. If you don't regularly pay off your balance in full each month then forget it. The interest (APR) is much higher than you could probably get elsewhere and you don't get cashback unless the minimum monthly repayment is fully paid on time. Amex is also not as widely accepted as alternatives such as Visa and MasterCard (primarily because its vendor charges are often higher than other cards), so you'll probably want a different card for backup.
If you can cope with these drawbacks, earn at least £30,000 a year and will spend more than £3,000 a year (you won't get cashback unless you do), the Amex Platinum Cashback card could be a worthy addition to your credit card collection.
As well as the standard cashback rates (see left) you get 5% cashback on purchases during the first three months capped at £100 (i.e. £2,000 of spending), great if you've got some big purchases looming. Cashback is paid on the card's anniversary, so you may have to wait up to a year to actually benefit from it.
|less than £3,000
|between £3,501 - £7,500
|balance over £7,500
There's a few other benefits thrown in too: up to £100 theft/damage/refund protection on items within 90 days of purchase, online fraud protection and up to £150,000 travel accident benefit (if you lose your life/sight or a limb).
Avoid the optional payment protection insurance. Amex charges 79p per £100 of monthly balance. If you plan on borrowing with this card it's probably not for you anyway, and in any case you could likely shave at least a third off the cost by shopping around.
Another warning, don't ever use this card to withdraw cash from a hole in the wall. You'll pay 3% (minimum £3!) on the withdrawal and 27.9% APR from then until you repay. Daylight robbery!
If you can live with the restrictions mentioned above, this is a worthwhile card, especially thanks to the initial 5% offer. For example, if you spend £1,000 during the first three months and a further £4,000 over the rest of the year, you could bag yourself £72.50 cashback - nice. Just check what other deals are around thereafter as the introductory offer is a one-off.
Web Link: http://www.americanexpress.co.uk