Get a Christmas present ... from your credit card

By JAMES CONEY FOR THE DAILY MAIL
Updated:

 
Christmas spirit: Now is the time to enjoy credit card perks

Christmas spirit: Now is the time to enjoy credit card perks

Every  December, shoppers spend upwards of £10billion on credit cards and more than £20billion on their debit cards.

Last year, there were 70 million more purchases made on plastic cards in the festive season than in other months.

So making sure you spend on the best credit card is vital. Get it right and you could spread your Christmas spending out over the year, or even get 5 per cent off your presents.

And if you sign up now, you will have just enough time to get a card before the last-minute shopping rush, as it can take up to 14 days.

You have two choices. Either pick a card with a low or zero initial purchase rate or find one that gives you perks or cashback.

This first category has been dominated by Tesco Bank Clubcard Mastercard for almost a year now. It gives 0pc on your purchases for the first 12 months.

If you apply online, Tesco will give you an instant decision, which will help you get your card quicker. The added bonus with the Tesco card is that it has a cashback scheme, too.

Spend anywhere on the High Street and you will get one point for every £4 you spend. Pay in-store and you also accumulate points for Clubcard vouchers.

So, for every £4 of shopping, you get one point on your credit card and two points on the clubcard. Every 100 points you get a £1 voucher for Tesco. You can also cash these in for Airmiles.

It's not the most generous rate - it equates to 0.75 per cent for in-store spending, and 0.25 per cent elsewhere.

But it's a perk if you want a card that you don't intend to pay off the balance of immediately.

Next best is Sainsbury's Finance Mastercard, which has ten months' interest-free on purchases (and 12 months for purchases in Sainsbury's stores).

This card also has a perk as it collects Nectar points. Sign up now and you get extra points for two years on shopping in Sainsbury's. You get two points for every £1 in-store - after this offer, you get one point per £1. Outside Sainsbury's, it's one point for every £5.

At the top rate this equates to 1pc cashback as 500 points gives you a £2.50 voucher.

Nectar points don't have a specific value, as they can be swapped for purchases from a range of items, including holidays, DVDs and shopping. You will need to keep an eye on the Nectar website to spot the latest offers.

For cashback, though, you need look no further than the American Express Platinum Cashback card.

It gives 5 per cent cashback on the first three months' spending, up to a maximum cashback of £100.

Think of this as 5 per cent of all your Christmas shopping. After this, you earn up to 1.25 per cent, depending on how much you spend.

For the first £3,500, you earn 0.5 per cent, then 1per cent up to £7,500, and the higher rate above this.

With this card it is absolutely vital that you remember to pay off the full amount each month, otherwise the interest you pay will wipe out the benefit of the cashback.

If your area has lots of stores that don't take Amex, then the next best on general spending you can find is 1 per cent cashback.

The AA's credit card offers this, as do the Play and Amazon credit cards. The latter two also give you £15 vouchers for signing up. All these cards give 2 per cent cashback if you shop through their websites or, with the AA, spend on motoring.


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