In focus: Barclaycard Rewards Credit Card

·5-min read
 ( )
( )

Our verdict

If you want to translate straightforward credit card spending into cash, this is a card that should definitely be on the shortlist. What’s more, there’s no annual fee. The Rewards card from Barclaycard also includes attractive features for overseas use, making it a card that appeals to regular travellers.

Annual fee: None

Late-payments fee: £12

Representative APR: 22.9% APR (variable).

Pros

  • Simple cashback rate

  • No annual fee

  • No non-sterling transaction fees

  • 4 free Apple subscriptions for up to 5 months

Cons

  • Better cashback rates available elsewhere

  • Relatively high APR

  • Minimum income requirement

  • No 0% period on balance transfers or purchases

  • Fee payable on balance transfers

Key features

  • 0.25% cashback on purchases

  • Purchases made abroad are fee-free (so long as you pay in local currency)

  • Fee-free cash withdrawals at home and abroad (provided they’re paid off in full)

  • Discounts available on live events

Rewards

Quite a rarity among credit cards in that this is a product that pays 0.25% cashback when you shop with it. The cash is credited annually to your statement, or at your request.

You’ll only earn cashback on new purchases. Transactions such as balance transfers, money transfers, cash withdrawals, or buying currencies don’t count towards the tally.

There are, however, other perks to be had via Barclaycard Entertainment, including access to savings and discounts on some live events. New cardholders are eligible for a welcome bonus of four, free Apple subscriptions for up to five months.

Charges

There’s no annual fee to pay on the Barclaycard Rewards card. Note, however, that there’s no interest-free introductory window on purchases, either. This means, new purchases are charged straight away at a representative rate of 22.9% APR (variable).

The card does, however, come with 56 days’ interest-free credit on spending. So, as long as you clear your balance in full (and on time) each month, you won’t be liable for an extra penny in interest.

When it comes to balance transfers, this card does not come with a 0% introductory offer window.

This means that any existing balances moved over to this card will also be charged at a representative rate of 22.9% APR (variable). Customers discover the balance transfer fee that they will be charged on acceptance for the card. This amount will depend on the applicant’s credit rating.

Late monthly repayments incur a £12 fee. Setting up a direct debit for repayments helps ensure that you are never penalised by late payment charges.

Of potential interest to travellers, this card does not charge transaction fees for making purchases (or even withdrawing cash) when the user is overseas, providing the transaction is made in a local currency. Interest is not incurred on cash withdrawals made abroad, either, so long as the balance is cleared in full.

Protection

As with any credit card, customers receive protection under Section 75 of the Consumer Credit Act.

This financial backstop applies to purchases costing between £100 and £30,000. Even if you only pay for part of the purchase with your plastic (such as a deposit), you receive protection for the entire cost of the goods or service concerned.

Eligibility

The Barclaycard Rewards Credit Card will be an attractive option to plenty of shoppers and travellers which means that applicants with the healthiest credit scores are most likely to be accepted for it.

To qualify, you need to be at least 21 years of age and be able to demonstrate at least four years’ experience of managing credit. Candidates also need to be able to show a record of making payments on time.

Make use of free eligibility checkers before formally applying for this card. This will enable you to find out quickly the likelihood of being accepted, but without affecting your credit rating in the process.

Before you sign up

It’s important to make careful use of this credit card. Failure to pay off a balance in full probably means that the interest you end up being charged will outweigh any rewards that you earn.

Would-be customers also need to exert a certain amount of financial discipline about ensuring they make the minimum monthly repayment on their plastic (the greater of £5 or 3.25% of your balance). Failure to do so means the risk of having perks withdrawn.

Users of this card when overseas should bear in mind that, while commonly charged foreign transaction fees don’t apply, this is only the case where you opt to pay for your transaction in the relevant local currency. Paying in sterling may incur fees.

Suitable for me?

If you’re looking to be rewarded with cashback on transactions and also have a disciplined approach to managing your credit cards, then this product could be ideal for you. The Barclaycard Rewards Credit Card is also of benefit to overseas travellers, bearing in mind the above caveat about paying for goods in the local currency when abroad.

Other options?

Rival cards may offer more generous levels of cashback. But, at the same time, they may also impose either an annual fee or greater restrictions for use overseas. It’s a case of weighing up all the variables that are relevant to your card usage and spending patterns.

For those looking to transfer existing credit card debt, it’s probably worth looking elsewhere instead for a card with an interest-free balance transfer offer. The same applies for anyone eyeing up some immediate new purchases on their plastic. With this card, there’s no 0% introductory offer period.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting