Never heard of Zopa Bank? It’s one of the UK’s newest banks in the age of digital banking.

It was first founded as Zopa Limited in the early 2000s, when it was one of the UK’s first online peer-to-peer lending facilitators. In 2020, Zopa Bank received its full UK banking license.

Since then, it has expanded the services it offers to include a range of traditional banking products online. These include savings accounts, personal loans, and the Zopa Credit Card.

As a Zopa customer, you’ll have access to a range of digital financial services through advanced technology, its mobile app, and its website. It uses the information you provide to personalise its services to you, while maintaining competitive rates for borrowers and savers.

Don’t let Zopa Bank’s short timeline deter you. In its short life as a bank so far, it has already won a hatful of banking awards, including:

• Multi-winner of the British Bank Awards’ Best Personal Loan Provider
• Moneynet Awards 2024 Best Savings App
• Moneynet Awards 2024 Best Fixed Rate Cash ISA Provider
• AltFi Awards’ Fintech of the Year
• AltFi Awards’ People’s Choice Award, with more than 80% of the vote
• Best Credit Card Provider at the British Bank Awards 2021

The question is, does the Zopa Credit Card measure up for you?

What Is The Zopa Credit Card?

Focusing on flexibility and accessibility, the Zopa Credit Card is fully tuned into the bank’s philosophy of using technology to enhance your customer experience.

It’s what is known as a digital-first product, allowing you to manage it through Zopa’s mobile app, with several standout features that help you to manage your finances while delivering banking-standard safety and security.

It’s a straightforward credit card, with few bells and whistles.

There are no complex points earning and reward programs to vex your thought process and complicate your spending decisions.

What you get is what you see – a credit card that does exactly as it says on the tin, with the benefit of an award-winning technological approach designed for modern credit card users.

Is The Zopa Credit Card For You?

The Zopa Credit Card could be a good choice if you want a card that gives you close control over your card use by utilising modern technology on your smartphone. Taking a personalised approach, you’ll find that credit limits and interest rates are based on your personal circumstances and credit history.

Managing card use through the mobile app means you have control in the palm of your hand, which is ideal if, like me, you prefer to manage your banking digitally.

It’s also a good alternative to other more traditional travel credit cards if you plan to use a credit card abroad.

Are You Eligible To Apply?

To be accepted for a Zopa Credit Card, you’ll need to meet certain eligibility requirements.

For a start, and as is standard for most card providers, you’ll need to be a UK resident and over 18 years old. You’ll also need to be registered on the electoral roll at your permanent address (and have been living there for at least a year).

Your income is also a significant factor. If you earn less than £10,000 a year, your application will be denied.

In addition, you should also have a good credit history – this isn’t a credit building card, so is not appropriate if you are just starting out or have a history of financial mismanagement.

Zopa want to see that you manage your finances responsibly, so be prepared to show this with a good track record of making payments on loans or other regular payments such as utility bills.

Lastly, you should also have at least two active lines of credit to demonstrate that you can manage ongoing financial obligations responsibly. Examples of this include mobile phone contracts, existing credit cards, and overdraft facilities.

What You Need To Know

With tailored credit limits and interest rates, digital convenience, enhanced security features, a user-friendly app, and more, your Zopa Credit Card can feel like owning an incredibly powerful financial tool. Here’s an outline of its main features:

A Personalised Credit Limit

The starting credit limit is based on the details you provide and the credit check that Zopa runs. The higher your credit score, the higher your credit limit will be set, between £200 and £1,200.

Free Mobile App

Zopa’s award-winning app is a real bonus. It puts real financial power in the palm of your hand, with real-time account monitoring, payment reminders, money management insights, and more, enhancing your experience and security.

No Annual Fee

There’s no annual fee attached to the Zopa card, meaning you get to enjoy all the benefits of credit card ownership without paying for them (providing you pay off your balance each month, of course).

APR Details

Like your credit limit, the interest rate charged by Zopa is also tailored to your personal circumstances and credit score. APR currently ranges from 27.3% to 34.90%.

Other Fees

While there are no annual fees to own the Zopa Credit Card, if you withdraw cash then you will be charged a withdrawal fee of £3 (plus interest from the day of withdrawal).

If you make a late payment, you will also incur a £12 late payment fee. There are no foreign transaction fees, either.

Zopa Credit Card Application

Here’s a step-by-step breakdown of how to apply for your Zopa Credit Card:

1. Start The Application

Head over to the Zopa website and click on ‘Apply online’, or click the red buttons on this page and it’ll take you straight there.

You manage the card via the app, so you’ll need a smartphone to download the app and complete your application.

2. Enter Your Details for Pre-Approval

The application proceeds by asking you to enter a few basic details, such as name, address, age, etc. Zopa uses these to run an eligibility check.

This won’t impact your credit score, and gives a good (though not guaranteed) indication of whether your application will be accepted. This is known as pre-approval.

3. Provide More Details

Having received pre-approval, Zopa will run a few more checks to confirm your identity and safeguard against potential fraud risks. You may be asked to submit additional documentation to verify your identity, bank details, and income.

If this is necessary, it can take a few days to process your application.

4. Final Credit Check

Having proceeded past the pre-approval stage and formally applied for a Zopa card, Zopa will conduct a hard credit check. This will show up on your credit report, but is essential for a final decision to be made.

5. Receive & Activate Your Card

When your application has been accepted, your new credit card will be posted to you, and should arrive at your address within 10 working days. You’ll need to follow the enclosed activation instructions to start using your card.

Managing Your Card Using The Zopa App

The Zopa app is your gateway to successful use of your Zopa Credit Card.

With the app on your smartphone, you will be connected to an award-winning financial tool that gives you much more than credit card balances and transaction details in real time.

You’ll receive alerts about each transaction made on your card, including any suspicious activity.

These will help you control your spending and safeguard your card from fraudulent activity.

If you do notice suspicious transactions or mislay your card (and we all know how worrying that can be), the app can come to your rescue by allowing you to freeze the card immediately – real peace of mind while you resolve the issue.

You can forget about missing payment dates, too. From the app you can set up a direct debit to ensure you make payments by the due date. You can also set the app to transfer your balance to other cards, though transfers in are not available (though they are being trialled).

Beyond card management, the Zopa app also integrates with its budget tools, and allows you to link to other financial accounts. This allows you to get a more complete view of your finances.

You can categorise your spending, set spending limits, and receive alerts as you near them.

Zopa uses all your transactional information to help it produce personalised financial insights. Use these to better understand your spending habits and develop your financial management skills.

If you need to submit documentation or require customer support, the app simplifies these processes too – with support available in a variety of ways, including chat services.

Finally, recognising that your needs are unique, you can customise the app dashboard to prioritise the features that you use most to make it easier to navigate and provide a more personal user experience.

Tips To Manage Your Card Effectively

Managing your Zopa Credit Card effectively is crucial to your financial health, and could also help to improve your credit score. Here are a few tactics to help you make the most of your card and avoid falling into the credit card debt spiral.

Avoid Cash Withdrawals

Drawing out cash from your credit card is costly. Not only will you incur a cash withdrawal charge, but you’ll also pay interest on the amount withdrawn from day one.

Plus, it could negatively impact your credit score – a cash withdrawal is viewed by credit rating agencies as a sign that you can’t manage your money well.

Keep Your Credit Utilisation Low

The ratio of your card balance to your credit limit is known as credit utilisation, and it’s a key in the calculation of your credit score.

Managing this below 30% helps to demonstrate that you manage your money effectively and do not rely on credit. Plus, it means you’ll always have a little in reserve in case of emergencies.

Set Up Automatic Payments

Automating your payments will ensure you never miss a payment date. Setting a direct debit to pay the balance ensures you never pay interest. Simple, really!

Use Alerts & Notifications

Set alerts and notifications on the Zopa app to keep you informed of transactions and balances. This is a feature that will help you manage your card effectively, as well as help you to identify your spending habits.

Inform Zopa Of Any Changes In Personal Circumstances

If your financial circumstances change, such as receiving a pay rise or changing jobs, let Zopa know immediately: you could qualify for improved terms, such as higher credit limits or lower interest rates.

Always Have Cash To Pay Off Your Balance

Don’t use your card as an extra source of cash – it’s not. Instead, use it as a substitute source of cash.

How I work this is by transferring an equivalent amount of cash to my spending on my credit card (rounded up to the nearest pound) from my current account to a separate instant access, high-interest savings account.

This ensures I always have funds available to pay off my balance in full each month, avoiding interest charges – and those roundups soon start adding up to new savings.

Update Your Budget Regularly

Effective budget planning is crucial to your financial health, and the Zopa budget tool is a valuable addition to your financial armoury. Should your financial circumstances change, revise your budget to make sure that you keep your spending within budget and remain on track toward your financial goals.

Alternatives To The Zopa Credit Card

Everyone’s financial profile and needs are unique, which means the Zopa card may not be right for you. Even if it looks like a good choice, it’s always worth exploring other options.

For example, you might look toward cashback credit cards or credit building cards. Here are five of our top picks:

American Express Cashback Everyday Credit Card

The American Express Cashback Everyday Credit Card is ideal if you want a card with no annual fee and a tiered cashback reward program.

You’ll receive 5% cashback on purchases for the first five months (capped at £125), after which the cashback reverts to 0.5% for spending up to £10,000 annually and 1% on amounts above this.

Asda Money Credit Card

If you do most of your shopping at Asda, the Asda Money Credit Card might be for you. You’ll receive a whopping 10% cashback on all Asda purchases as an introductory offer.

Once the promotional period ends, you earn 1% back on Asda purchases and 0.3% on other spending, with the cashback being credited as Asda Cash which can be spent in-store or online.

Santander All In One Credit Card Mastercard

This card features a low introductory interest rate and no balance transfer fee for the first 15 months, which is a pretty good deal if you want to manage existing credit card debt more cheaply.

A modest £3 monthly fee applies, though it does offer ongoing benefits like 0.5% cashback on purchases.

Barclaycard Forward Credit Card

If you’re new to credit, you might be best to apply for the Barclaycard Forward Credit Card.

This card rewards you for using it responsibly, reducing interest rate up to 5% providing you make payments on time and don’t break through your credit limit.

It also includes cashback rewards through Barclays’ partner retailers, though this list is limited.

Virgin Money All Round Credit Card

If you want versatility, balance transfer options, introductory rates, and a rewards program, then you might want to put the Virgin Money All Round Credit Card under the microscope.

As with all other credit cards, you’ll want to make sure you clear your balance in full each month to get best value from the rewards available to you.

Why Choose The Zopa Credit Card?

As a pioneering digital bank, Zopa offers a refreshing approach to personal finances that is mirrored in its credit card. It’s an option that offers a straightforward, easy-to-use line of credit ideal for you if you want financial control in the palm of your hand.

The Zopa app rounds off this straightforward credit card with a digital interface that does much more than simply alert you of transactions and credit balances.

Moneyfarm and Nutmeg are two of the UK’s most popular investment platforms for both novice investors.

Both are designed for the modern digital era, operating on a ‘set-and-forget’ investment model. After setting up your account and direct debits, these platforms take over the management of your investments.

They are accessible via both mobile apps (iOS and Android) and web-based platforms, providing convenience and flexibility.

The question is, do they deserve their popularity? If they do, which is best for you?

You’ll find the answers in this comprehensive comparison, in which I look at everything from products and services to asset choice, funds, and fees.

How Do They Work?

Moneyfarm and Nutmeg are what we call ‘robo-advisors’. They use technology to simplify the investment process, offering professional portfolio management and other services at highly competitive fees.

Moneyfarm

Moneyfarm launched in the UK in 2016, and is backed by several major investors, including Allianz Global Investors and M&G. It has more than 125,000 active investors in Europe and manages over £3.5 billion in assets.

Its process focuses on understanding your investment goals and risk tolerance through a detailed questionnaire. The information you provide is then used to match you to a portfolio that works well with your investor profile.

Its portfolios are managed by an in-house team of investment experts who analyse markets and portfolio performance, continually adjusting holdings accordingly to pivot from your goals and risk level.

In addition to this, Moneyfarm also offers the guidance of investment consultants who can provide personalised advice if you need extra help.

Nutmeg

Founded in 2011, Nutmeg builds and manages diversified portfolios tailored to investors’ needs.

You don’t need to choose investments yourself; Nutmeg handles everything for you. It manages around £5 billion in assets for more than 230,000 investors.

Once registered, you can set up a portfolio in less than 10 minutes. Nutmeg uses mostly ETFs (Exchange Traded Funds) to construct 20 different portfolios that range in risk level and offer ethical investment opportunities, too.

You can also receive advice from Nutmeg’s team, though this is restricted to their own products.

Product & Service Offerings

You’ll have a range of investment options available with both Moneyfarm and Nutmeg: General Investment Accounts (GIAs), tax-efficient ISAs and Junior ISAs, and SIPPs for retirement planning.

In addition, Nutmeg also offers a Lifetime ISA (LISA), which is designed for those saving a deposit for their first home or for retirement.

Nutmeg also offers a personal financial advice service, provided by its team. This service is free, though you’ll only receive general advice about its products. For more personalised financial guidance you could use Nutmeg’s personal financial planning service, which costs £575.

Like Nutmeg, Moneyfarm offers a free financial guidance service. While this is aimed at helping you make more informed investment decisions, it does not provide the depth of advice provided by Nutmeg’s paid-for financial planning service.

Portfolios, Funds, & Other Assets

Moneyfarm and Nutmeg construct their portfolios using cost-efficient ETFs, meaning their fund charges are among the lowest in the market (more about this in a moment).

Moneyfarm offers a range of portfolio types: fixed allocation, actively managed, and liquidity+. Its fixed allocation portfolios are lower cost and follow the market.

The actively managed portfolios are constantly monitored by a professional investment team with the goal of outperforming markets. Liquidity+ portfolios are ideal for shorter time horizons of less than two years.

The questionnaire you complete when you register for an account helps the tech to select which type of portfolio is best for you, as well as determining which of seven risk levels is most appropriate. You can also choose to invest in ethical funds or other thematic options.

If you want a more hands-on investment experience, you can also select your own investments and buy shares into an ISA or GIA through the Moneyfarm platform.

Nutmeg’s approach is similar, but with a few key differences.

Rather than seven risk levels, its portfolio range covers up to 10 risk profiles. These are based on five investment styles with ETFs used for diversification across shares, bonds, industrial sectors, and geographies.

Unlike Moneyfarm, with Nutmeg you must select your risk level and investment style yourself, with technology then managing your investments.

Its fixed allocation portfolios are managed by technology, while an investment team monitors its fully managed and socially responsible portfolios daily. It also offers Smart Alpha portfolios that are managed by JP Morgan.

Like Moneyfarm, Nutmeg offers thematic investing, though this is only available at risk levels 5 to 10.

Their Apps

Moneyfarm’s investment app is designed to make investing accessible, convenient, and user-friendly, for both novice and experienced investors.

The app allows you to track your investments in real time, providing a detailed breakdown of your portfolio’s allocation by asset class and giving insights about performance and market trends. If you need to adjust your strategy, it’s easy to do so.

Overall, the app is designed with a clean, intuitive interface that makes it easy to navigate through its features and access the information you need.

Nutmeg’s investment app makes it easy for you to manage your investments on the go. You’ll be able to monitor your investment performance, as well as access updates about investment strategies and market news.

It’s an intuitive, user-friendly interface that provides detailed reports on demand.

Both Moneyfarm and Nutmeg provide various tools to help you invest more effectively. These include investment calculators, and advice and guidance via articles, eBooks, and more.

Overall, Nutmeg’s app provides a tad more functionality than the Moneyfarm app. This is reflected in ratings on Apple’s app store – while both score highly, Nutmeg scores 4.8/5 and Moneyfarm scores 4.6/5.

Comparing Fees

Both Moneyfarm and Nutmeg operate a tiered pricing structure, meaning the more you invest the lower the charge. Fees also depend upon your style of investment/portfolio choice.

Moneyfarm Fees

Moneyfarm’s charges reduce the larger your portfolio, with the reduced fee charged on the entire value of your portfolio:

Should you invest in a Liquidity+ portfolio, you’ll be charged a 0.30% Moneyfarm fee and an underlying fund fee of 0.10%, irrespective of the size of your portfolio.

Share dealing is charged at £3.95 per trade.

Nutmeg Fees

Nutmeg’s fee structure is less complex. On all its portfolios except fixed allocation, it charges a Nutmeg fee of 0.75% up to £100k and 0.35% on the portion above this.

The Nutmeg fee on its fixed allocation portfolio is 0.45% up to a value of £100k, and 0.25% on the portion above this. In addition to this fee, you’ll also pay fund costs and a spread as follows:

Comparisons

Let’s compare total Moneyfarm Active Management to Nutmeg Fully Managed, for a portfolio size of £25k, £100k, and £250k:

Which Is Best For Beginners?

If you’re just starting out with investment, platform choice is crucial. I like both Moneyfarm and Nutmeg for beginners, though there are a few key differences.

You’ll find it easy to open an account with both companies, and both use technology to help you on your investment journey.

If you’re happy with a technology-led approach, Nutmeg offers a range of portfolios to cater for you whatever your investment and risk profile. If you want the comfort of personalised guidance, Moneyfarm’s approach of combining technology with access to human consultants may be more reassuring.

The best way to sum up is that both are ideal platforms for beginners – simply distinct types of beginners.

Is Your Money Safe?

Whenever you’re investing, your capital is at risk – investments go down as well as up. But what about your money, your personal data, and your account?

Both Moneyfarm and Nutmeg are regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS). This means they must both adhere to strict standards like other regulated financial companies in the UK and, if they were to go bankrupt, up to £85,000 of your money/investments that you have with them is protected.

They both use custodian services to keep your funds separate to their own, and employ layered protection such as advanced encryption and secure login processes to protect your personal information and account details.

They’re also backed by some big players – JP Morgan Chase own Nutmeg, and Moneyfarm is supported by significant investors such as Allianz Global Investors and M&G.

In summary, whether you choose Moneyfarm or Nutmeg, you can be confident that both platforms have robust measures in place to protect your money, providing a safe environment for your investments.

How they perform, of course, depends on the ebbs and flows of financial markets.

How To Get Started

It’s an equally effortless process to get started with both Moneyfarm and Nutmeg.

Start by visiting their respective websites or downloading their apps. You’ll then need to fill out an online questionnaire, after which a diversified portfolio will be suggested to you.

Create an account, make your deposit, and select your portfolio to get started.

Weighing Up The Pros & Cons

No investment platform can be perfect for all. Before deciding on which is ideal for you, it’s a good strategy to consider the pros and cons of each platform.

Moneyfarm

Moneyfarm offers several advantages for investors, especially if you’re new to investing. You can receive personalised guidance from its investment experts, as well as benefit from active portfolio management with continuous monitoring of portfolios to ensure investments are optimised to current financial market trends.

On top of this, you can change your portfolio to match your evolving investor profile to make sure that your investments align with changing financial goals. Additionally, you’ll need a low initial investment to get started.

However, Moneyfarm does have some drawbacks. For example, there are fewer portfolio options compered to Nutmeg and, while its fees are competitive, they may be higher than some other robo-advisors.

Nutmeg

Turning to Nutmeg, a range of benefits make it a popular choice. Its diverse portfolio options are a real plus point, letting you select a portfolio that more closely aligns with your investor profile and your values.

It’s fast to set up your portfolio, and offers an extremely simplified investment process. Using low-cost ETFs to construct its portfolios, investment charges are kept low, which maximises your returns.

On the downside, you’ll need a minimum of £500 to get started and, while its automated guidance is excellent, you won’t have access to the same level of personalised human advice that you have at Moneyfarm.

Tips To Get The Most Out Of These Platforms

Whatever your level of investment experience, there are a few ‘rules of engagement’ that will help you get the most out of whichever investment platform you choose.

These tips add up to a range of sensible and sound investment habits, as you develop a strategy that suits you and helps to move you toward your investment goals:

Know Your Risk Tolerance & Goals

Take your time when answering the questionnaires set by Moneyfarm and Nutmeg – and be honest with yourself when doing so! This will ensure that the recommended portfolios align with your long-term investment objectives’ risk profile.

Regularly Review & Adjust Your Portfolio

Over time, your life will change. You might move house, get married, have children, change jobs, receive a pay rise or bonuses, etc.

As your financial situation shifts, it’s crucial to take stock and review your investment strategy so it remains aligned with your evolving investment goals.

Leverage Educational Resources

Don’t ever stop learning! I was employed in the financial markets for around a quarter of a century, and there’s always something new to learn. Use the investment platform’s resources to your full advantage – stay informed about market trends, investment strategies, and how your portfolio is performing.

They say that knowledge is power – when you’re investing, knowledge is profit.

Take Advantage Of Expert Guidance

Moneyfarm provides access to investment consultants, while Nutmeg offers detailed guidance through its platform.

Don’t hesitate to reach out for advice or clarification on your investment strategy – you’ll become more confident in your approach and make better investment decisions.

Monitor Fees & Costs

Both platforms offer low costs, but this doesn’t mean you shouldn’t understand how these affect your investment returns. When you review your portfolio, make sure to also review the cost structure and measure how it might affect your returns going forward.

Stay Diversified

Diversification is key to successful, long-term investing – assets, economies, and industrial sectors rarely move in the same direction.

Maintaining a diverse portfolio in line with your investor profile will help to smooth market shocks, reducing volatility in your investment performance, and making investing less stressful and more successful.

Embrace Pound-Cost Averaging

Invest your money steadily, adding to your portfolio with regular investments. This will help to smooth out volatility in the markets.

Timing the market is not only almost impossible; it’s a pitfall that often leads to poor emotional investment decision-making.

Moneyfarm Vs Nutmeg – The Bottom Line

Both Moneyfarm and Nutmeg are excellent investment platforms. While they both leverage technology to help simplify the investment process as well as optimise your investment strategy to your investor profile, risk tolerance, and investment goals, each platform offers unique advantages, too.

For example, you’ll have access to more personalised investment guidance with Moneyfarm, while Nutmeg stands out for its range of diverse portfolio options and fast set-up.

Both platforms offer robust tools and services to help you achieve your investment objectives. With so little to choose between them, when deciding which is best for you, ensure that you fully consider your individual needs, preferences, and financial goals.

Do you want to boost your credit score but not sure how to start? The best credit building cards can certainly be the stepping stones to a higher score.

Whether you’re new to credit, a young adult stepping into financial independence, or recovering from past financial mishaps (we’ve all made them), this type of credit card is ideal for you.

While it might sound counterintuitive to put a credit card in your pocket to improve your creditworthiness, it’s actually the most effective method – providing you use it strategically (and I’ll be sharing a few tips toward the end of this article to help you do so).

If you’re ready to take a leap toward a higher credit score, take the weight of your feet and read on to discover the best credit building cards to apply for.

What Is A Credit Building Card?

A credit building card – also known as a credit card for bad credit – is one that has been designed for those with a poor credit score because of previous financial mismanagement, or for anyone who hasn’t used credit before.

There are many reasons why you might be denied a standard credit card, and applying for a credit builder card removes the stress. Factors that might cause your application for a credit card to be declined include:

• You have a record of being a poor payer – it could be that you simply forget to pay your bills on time each month
• Your credit rating has been hit by the poor credit rating of a partner on a joint account
• You’ve been declared bankrupt in the last six years
• You’ve had an IBVA in the last six years
• You have no credit management history – because you’ve never had a loan or other credit account
• You have CCJs (County Court Judgements) against you in the last six years.

How Does A Credit Building Card Work?

Credit building cards work in much the same way as other credit cards, except for a couple of key differences.

When you apply, you’ll be credit checked, though the criteria for your application to be accepted are not as strict as they are for standard credit cards. You’ll probably have a smaller credit limit, and should you fail to pay off your balance in full each month, you’re likely to find the interest rate charged is horrendously high.

Other than this, the workings of a credit building card follow the same operational model as other credit cards:

• When you spend on your credit card, you are borrowing money from the card company.
• There will be a set amount of credit you may use (your credit limit).
• You’ll receive a monthly statement.
• Providing you repay your statement balance in full each month when it is due, you won’t be charged interest.
• Fail to pay off the balance in full each month, and you will be charged interest on the outstanding balance.

Using a credit card properly – and making payments when they should be made – demonstrates that you can manage credit well and that you are a reliable payer. These are key attributes that any company will look for when you apply for credit or financial accounts with them.

The Super 6 Credit Building Cards

There are several card options available to help you build your credit score. The ones we have selected all have one thing on common – none charge an annual fee.

Other than this, there are variations to consider. These include your spending patterns, any perks available on the card, and if you want to increase your credit limit over time.

Whether you want to benefit from rewards on your regular spending, need a card but have been bankrupt in the past, or desire a competitive interest rate, you’ll find a card for you in our list.

(Acceptance of your application is subject to each card provider’s terms and conditions and your eligibility.)

Asda Money Select Credit Card

The Asda Money Select Credit Card is another points-earning card, with those points being in the form of Asda Pounds.

Though the interest rate of 34.90% APR is the highest of these seven cards, the rewards are more competitive.

During the first three months of card ownership, you’ll earn a very attractive 5% of spending in Asda Pounds for every real pound you spend at Asda (to a maximum of £50).

After this, the reward rate drops to 1% for spending via the Asda app and 0.3% on spending elsewhere.

Credit limit is between £250 and £5,000.

Barclaycard Forward Credit Card

If you’re new to credit and looking for a card that reduces the interest rate it charges for your responsible use, then this is it.

While the starting interest rate of 33.90% APR is not the lowest, what’s cool about this card is an automatic 3% APR reduction if you make all your payments on time during the first year, and then another 2% reduction for continuing with the good payment record through year two.

There is no interest charged on card spending in the first three months.

You’ll also be eligible for discounts on selected live events, and Barclaycard Cashback Rewards of up to 15% when you spend at its partner retailers (the list is limited, so don’t get too carried away!).

Your credit limit will be between £50 and £1,000.

Capital One Classic Credit Card

If you want a card that allows you to increase your credit limit while boosting your credit score, this is the best choice.

The interest rate of 34.90% isn’t anything to write home about, so you’ll want to pay off your balance each month to avoid this charge.

There are no specific perks, but you could benefit from two increases in your credit limit during the first year of ownership.

Credit limit starts at £200 and rises to as high as £1,500.

Tesco Bank Foundation Card

Ideal if you want to improve your credit score using a card with a competitive interest rate, and that rewards you for shopping at Tesco.

The interest rate of 29.90% APR is the lowest starting interest rate of our reviewed cards.

For every £4 you spend at Tesco, you’ll earn 5 Tesco Clubcard points. Use your card elsewhere, and you’ll receive 1 point for every £8 you spend.

Your starting credit limit will be between £250 and £1,500, and you can apply online.

Sainsbury’s Bank Everyday Credit Card

A competitive interest rate and reward program make this a good card for many.

The interest rate matches its rival, Tesco, at 29.90% APR, though you will not be charged interest for the first three months.

You’ll receive 3 Nectar points for every £2 spent on your card at Sainsbury’s Argos, and Habitat. For other spending on your card, you’ll receive 1 Nectar point for every £5 you spend using your card.

Initial credit limit will be set between £1,000 and £2,000.

Virgin Money All Round Credit Card

A card designed for those seeking to benefit from a 0% balance transfer, introductory rates, and valuable rewards.

The interest rate of 29.90% APR is competitive.

The Virgin All Round Credit Card offers a range of ways to earn Virgin Points, which you can then spend on things like entertainment, clothes, food and drink, days out, and even flights.

Credit limit is subject to status.

Pros & Cons Of Credit Building Cards

Before deciding whether a credit builder card is for you, you should understand what you’re getting into. A quick review of the advantages and disadvantages of these cards should help you:

The Pros

Credit building cards will:

• Give you access to credit for which you might not otherwise qualify because of your poor credit score.

• Help teach you financial discipline by requiring regular payments – and financial discipline is a key characteristic of financial wellbeing.

• Help to improve your credit score providing you use them regularly and make timely payments.

• Have lower, more manageable credit limits that limit the potential to build up high amounts of debt.

• Lead to access to better financial products as your credit score improves.

• May include other features and benefits, such as reward points for everyday spending and access to beneficial insurances.

The Cons

Owning a credit building card is not all a bed of roses! These cards:

• Charge high rates of interest, so carrying balances from one month to the next can be more costly.

• Offer lower credit limits, which reduces purchasing power and convenience of card ownership.

• May charge high fees for set-up, maintenance, and annual fees compared to other credit cards.

• Do not eliminate the temptation to overspend and build up your debt, which can lead to high interest charges and a downward spiral in your finances.

• Offer limited benefits, making them less attractive than other cards you might qualify for.

• Do not eliminate the need for good financial management and spending habits – miss a payment and it will damage your credit score.

Why You Should Check Your Credit Score

When you apply for a credit card, the card provider will run a credit check on you. They will approach a Credit Rating Agency (CRA) and ask for your credit report – this is known as a hard credit check, and will show up on your credit report.

A hard credit check can also be detrimental to your credit score, and the more you make in a short time, the more damage credit applications will do – especially if your applications are rejected.

Even if you have no history of using credit, you could be seen as a risk by lenders – how can they know if you manage debt well if you’ve never had a loan or other credit facility?

This is why I would always recommend that you check your credit score before applying for any credit, including credit cards. A low credit score needs to be boosted to get access to more and better financial products, higher credit limits, and lower interest rates.

Where Can You Check Your Credit Score?

You can check your credit score and view your credit report through four platforms in the UK – each providing details from one of the UK’s big three CRAs. If you want to know what’s your credit score, here are the services you need:

Experian

Experian is the UK’s largest CRA, and you can get your basic credit report from its Experian Free Service. For a more detailed view, including recommendations for how to improve your credit score, you’ll need to subscribe to its CreditExpert service (there is a 30-day free trial period).

TransUnion

A free service to access your TransUnion credit report is available from Credit Karma. Your report is updated weekly, and there are charts and graphs to help you track your progress over time.

You’ll receive personalised tips, and there’s also a useful eligibility checker to help you decide which company is most likely to accept an application for a financial account.

Equifax

To access your Equifax credit report, you’ll need to sign up to ClearScore, which is also a free service. Like Credit Karma, ClearScore updates your credit score weekly.

It includes a timeline to help you see how your credit score is trending, and also shows how you compare to national and local average scores. You’ll receive tips, and an eligibility checker is included.

Equifax also offer a paid-for service that is like Experian’s CreditExpert.

Checkmyfile

Offering a broader view, Checkmyfile compiles data from Experian, Equifax, and TransUnion into a single report. This comprehensive approach helps you understand how your credit score looks across the different CRAs.

This is a subscription service, though there is a 30-day free trial.

How To Use A Credit Building Card to Boost Your Credit Score

Opening and using a credit building card is one of the best strategies to help improve your credit score. But, as with all credit cards, it could also be your downfall.

Use it unwisely – give in to temptation, be fooled by easy credit, rack up an unmanageable balance, and miss payments – and your credit score will crumble.

Here are nine practical tips to ensure you don’t fall into the credit trap and a debt spiral, and successfully improve your credit score.

1. Use Your Card

A credit building card needs to be used. If you don’t use it, you won’t build up a history of good financial management – a CRA can’t measure data that isn’t there!

So, use your card to pay for things that you would normally buy, like groceries, fuel, lunch, etc., and settle your credit card bill every month.

2. Keep Your Credit Utilisation Low

Credit utilisation – your balance versus your credit limit – is one of the highest-weighted factors in determining your credit score.

Low utilisation indicates that you manage credit well and don’t rely on borrowing money to pay for your daily life. Try to keep your credit utilisation below 30%.

3. Make Payments On Time Every Month

This is the most crucial factor in your credit score. The easiest way to avoid missing a payment is to set up a direct debit for a few days before your payment is due each month.

4. Always Pay Your Whole Balance Each Month

Paying your whole balance each month will ensure you don’t get charged interest. It also indicates that you understand your spending limits and can handle a credit facility without overspending.

5. If You Can’t Pay In Full, Pay More Than The Minimum

If you do get into a situation where you are unable to pay your balance in full, make sure to pay more than the minimum payment required by the credit card provider. If you only pay the minimum, not only will your balance take longer to repay, you’ll also be paying more in interest.

Paying only the minimum is an indication that you’re finding it tough to cope with the credit you have.

6. Monitor Your Credit Score Regularly

Keep track of how your credit score is evolving. It usually takes around three to four months of card use for your score to start improving.

Monitoring your score will help you to understand how your financial habits are affecting your credit report, and you’ll also be alerted early to any errors on your credit score that need to be corrected.

7. Don’t Use Your Card To Withdraw Cash

If you withdraw cash on your credit card, you’re setting yourself up for a credit score failure. Not only will you incur interest on the amount you withdraw from day one, but the cash withdrawal is noted by CRAs – to them, withdrawing cash on a credit card is a big red flag.

8. Update Your Lender On Changes

Make your card provider aware of any changes in your personal circumstances, such as a change of address. Especially if you get a new job with better pay, or receive a pay rise, let your card provider know – they might reduce your interest rate or increase your credit limit.

9. Always Have The Cash To Pay Off Your Whole Balance

Here’s a little trick I use. Whenever I use my credit card, I move the money I have spent on my card from my current account to a separate savings account, rounding my spending up to the nearest pound.

I do this daily, and it ensures that I always have enough money to pay my credit card balance. Those small roundups quickly add up, too.

Plus, while interest rates aren’t too hot for savers right now, if you open one of the best regular savings accounts, you can retain instant access to your money while earning a little extra.

Should you get to a point where there’s no money left in your current account, stop spending on your credit card. After a couple of months with a week of a self-imposed prohibition on spending, you’ll soon improve your spending habits!

The Bottom Line: Credit Building Simplified

On the road to building – or rebuilding – your credit score, credit building cards are invaluable tools. By choosing the best for you and then using it wisely, making payments consistently, and using a credit builder card’s benefits strategically, you’ll not only boost your credit score, but you could also rack up some rewarding benefits.

Remember, the higher your credit score is, the greater access to better financial products you’ll have – including credit on more favourable terms.

Effective budget planning is the crucial first step to building a bright financial future, but it can be challenging – especially if, like up to a quarter of UK consumers (myself included), you hold more than one current account.

Add your credit cards to the mix, and keeping track of your spending moves from challenging to being a nightmare.

All those transactions to note down on a spreadsheet or cashbook, and how do you figure out where you’re overspending? One forgotten addition, and all your effort is for nothing.

Fear not – the best budgeting apps are here to rescue you. Among them is Snoop – an app that certainly doesn’t disappoint. Here’s why.

What Is Snoop?

Launched in 2020 by ex-Virgin Money executives, Snoop uses open banking technology to integrate your financial accounts in one place.

It’s a user-friendly app that will appeal to all, but especially if you are starting out with budgeting and taking control of your money.

Snoop tracks what you’re spending through your bank accounts and credit cards. That’s a great start, but Snoop goes further by providing insights that can help you improve your financial health.

If you’re looking to get a clear picture of your day-to-day finances, learn where and how you’re spending, or keep a tab on your financial position, Snoop is a tremendous and comprehensive tool that you can access on your mobile device or desktop (if you are a Snoop Plus subscriber).

How Does Snoop Work?

Once you have downloaded the Snoop app, you’ll need to create an account. This is easy to do, only requiring a few basic personal details and a few minutes of your time.

Once you have created a secure login, you can connect your various bank accounts and credit cards through its open banking interface. Once you’ve done this, Snoop starts its behind-the-scenes work to:

Snoop’s Key Features

When I say that Snoop is user-friendly, I really mean it. Managing your money and staying on top of your finances has never felt easier.

Its suite of features is designed to simplify your budgeting, and to help you reduce your expenditure.

There are two plans: the Standard plan and Snoop Plus. Whichever plan you choose, you’ll be able to see all your bank accounts in one place, receive daily balance updates, and benefit from automatic product categorisation.

Other features that you get with both plans include:

Spending Analysis

The core of Snoop is the detailed overview it provides on your spending habits. You can see how you’re spending your money across a range of categories, with graphs that bring your finances to life.

Ideal to help you identify where you are overspending, compare the current month’s spending versus previous months, and adjust your budget proactively.

Weekly Reminder Of Upcoming Bills

Never forget a bill again with Snoop’s weekly review of upcoming bills. This feature helps you keep on top of bill payments and ensure that your account balances do not go into the red needlessly.

It’s going to save you money and help keep your credit score healthy.

Spending Alerts

Do you have a spending category that you find particularly hard to keep under control? Set up a spending alert, and you’ll be automatically warned when you’re getting near your chosen limit (as well as monitoring for refunds).

This is a wonderful way to keep your budget on track.

Exclusive Partner Deals & Personalised Deals

Snoop has partnered with dozens of retailers to provide its users with exclusive deals. You could receive news of direct sales, cashback deals, discount codes, and more.

Not only does Snoop help you to stick to your budget – it helps you do more with less, too!

Regular Payment Tracking & Product Switching Deals

Here’s another feature that I think you’ll love. We all have a list of regular bills – from broadband to mobile phones; car, home, and life insurances to mortgage payments; loans to credit cards; and more.

Snoop’s intelligent program automatically suggests cheaper providers, and reminds you of upcoming contract renewals.

I don’t immediately switch, but knowing there are potential money-saving switches available prompts me to do my research – it’s the push that we all need sometimes.

Money Insight & Guidance

You also receive personalised advice based on your spending patterns and financial goals. This includes finance tips, improving credit scores, and enhancing pension contributions, as well as actionable insights to help you save for a rainy day, reduce your debts, and maximise your investments.

It’s like having a financial advisor in the palm of your hand!

Extra Power Of Snoop Plus

That’s a pretty comprehensive list of features, but sign up for Snoop Plus and you get even more budgeting power. You can:

• Create an unlimited number of custom spending categories
• Add accounts manually
• Track your total net worth
• Export your transaction data
• Access unlimited custom spending reports
• Receive unlimited spending and refund alerts

The ability to manually add accounts isn’t as good as having them update automatically, but it does help you if you have an account that Snoop doesn’t support with open banking (I have one such account).

On top of these extra features, as a Snoop Plus subscriber, you’ll also benefit from payday-to-payday spending tracking, and tracking your bills by pay cycle.

Instead of tracking your spending monthly, you can adjust your budget window to align with your pay cycle – weekly, bi-weekly, or monthly.

Personally, I think this is a much better way of budgeting – it removes the hassle of manually allowing for income/expenditure during the few days when a monthly budget cycle doesn’t quite marry up with your payday.

Snoop Features At A Glance

Is The Snoop App User-Friendly?

As you might expect, having been envisioned by ex-Virgin Money execs the Snoop app has been designed with the user experience in mind – whether you’re new to budgeting apps or a budgeting pro.

If you’re a novice, or you find traditional budgeting methods daunting, you’ll find the visual aspects demystify the entire process. If you’re an experienced budgeter, the extra tools and features in Snoop Plus will help you to be more detailed with personalised budget management.

The interface is clean, sleek, and easy to navigate – the app design intuitively guides you through all your important financial information. With its graphs and visual categorisations, it’s easy to spot spending trends.

You can start by adding one financial account, and add others when you need to – which is great to evaluate the app before going all in.

Is Snoop Safe To Use?

Safety and security are always a concern when managing finances online. Snoop doesn’t take this issue lightly, and employs a range of robust measures to make sure your data is safe.

For a start, Snoop includes two-factor authentication (2FA), meaning you’ll need more than a username and password to access and use your account.

All data transmitted to and from the app is encrypted using the latest encryption protocols, which means it cannot be read by anyone without the key to do so while it is in transmission.

Snoop is also authorised and regulated by the Financial Conduct Authority (FCA) and adheres to the UK’s Open Banking regulations. It also undertakes regular, independent security audits and penetration testing (to assess the security of its IT infrastructure against hackers).

The combination of all these measures should give you the confidence to use the Snoop platform, knowing that your personal information, banking data, and online security is being managed to the highest standards.

How Much Does Snoop Cost?

The standard version of Snoop is free, and will be free forever. You’ll have access to all the standard features, including spending categorisation and alerts, budgeting tools, and account linking.

It’s great if you want straightforward budgeting help (such as tracking your spending) and advice without additional cost.

If you want more advanced features – such as unlimited custom categories and alerts, enhanced spending analysis tools, payday-to-payday tracking, and the ability to track your total net worth – Snoop Plus is for you.

This costs £4.99 per month, or £39.99 if you pay annually.

Snoop: The Pros & Cons

If you’re considering using Snoop, you’ll want to weigh up the pros and cons before making your decision. Here’s a brief breakdown of Snoop’s advantages and disadvantages.

Pros

Comprehensive Account Integration

You can connect to more than 60 of the UK’s major banks and credit cards, giving you a comprehensive view of your day-to-day finances.

User-Friendly Interface

The Snoop app is easy to use, which is great for everyone, especially if you’re new to budgeting apps.

Free Core Services

The basic version of Snoop includes all the standard features at no cost – perfect for novices and to allow you to get used to the system.

Advanced Budgeting Tools

There are several advanced budgeting tools included as standard, but move up to Snoop Plus and you get a suite of even more advanced features to help take your finance management and knowledge up a notch.

Proactive Savings Opportunities

Snoop sends personalised money-savings suggestions daily, as well as opportunities to switch regular payments to cheaper providers.

Cons

Advanced Features Require Subscription

If you want to access the more advanced features of Snoop, you’ll need to become a Snoop Plus subscriber.

Geographic Limitations

You can only link to UK financial institutions, which makes it more difficult for those with foreign accounts (like Wise, for example) to keep track of your full financial situation.

Snoop gets over this by allowing you to manually add an account, but this can be cumbersome.

Limited Investment Features

Some of Snoop’s competitors offer investment tracking or direct access to investments – Snoop doesn’t. If you want to manage your investments alongside your spending, this could be a drawback.

Potential Overload Of Information

With a wealth of features and daily advice and tips, Snoop can be overwhelming, especially for those new to budgeting.

Alternatives To Snoop

Snoop’s a great budgeting app, but will it give you all you need? There are several competitors to Snoop that you might consider. These include:

Plum

Plum uses AI tech to work out your spending habits, and to work out how much you can save. It will help you automate your savings, setting up rules to help you grow your money – often without realising it!

If your budgeting goals include passive saving and investing alongside budgeting, this might be the better option.

Chip

Chip is more focused on saving and investment, offering features such as high-interest savings accounts and other investment options. Better if your primary goal is to build your savings rather than track your expenses.

Emma

Emma includes many of the advanced budgeting features that Snoop offers, and like Snoop is an excellent budgeting tool. However, Emma provides more financial planning tools, and includes access to investment options including a cryptocurrency fund.

How To Get The Most From Snoop

When you sign up for a Snoop account, it’s a big step to taking real control of your finances. However, like they say, a tool is only as good as the one using it.

Here are my tips to help you get the most from Snoop, whether you open a basic account or Snoop Plus.

Connect All Your Accounts

The whole idea is to keep track of your finances. Connecting all your accounts to Snoop will give you more accurate insights.

Customise Your Categories

Take time to customise spending categories. Snoop assigns categorisation automatically, but tailoring them will help you track your spending more accurately.

Set Up Spending Alerts

They’re a fantastic way of keeping your spending in check, and really do help you to see where you can cut back on unnecessary expenditure.

Review, Monitor, & Adjust Budgets

Get into the habit of reviewing your spending regularly, using Snoop’s monthly spending summaries. Spot the trends, and adjust your budgets and spending habits accordingly.

Engage With Snoop Of The Day

Watch out for the tips provided by Snoop’s daily insights – they can help to save money, manage your credit, and improve spending habits.

Check Offers, Discounts, & Switch Suggestions

Check the app for new discounts and promotional offers, vouchers and more. The switch-and-save feature could help you to always pay the lowest prices for your regular bills like energy, broadband, insurances, and mobile phone.

Snoop – Is It For You?

There’s no doubt that Snoop is a robust budgeting app. It takes the hassle out of managing and tracking your budget, and has a user-friendly interface that is ideal for both beginners and budgeting pros.

Whether you just want to track your spending more effectively, reduce your outgoings, or monitor your net worth accurately, you’ll find that Snoop is more than a simple budgeting app – it’s a comprehensive tool to help anyone who is serious about improving their financial health.

Wouldn’t it be great if you could simply go about your daily business and then, at the end of the month, receive a few pounds for doing no more than spending as you would? Welcome to the world of cashback credit cards. A world in which you really can get something for nothing!

Too good to be true? Not if you play by the rules and pay off your balance in full every month.

However, not all cashback credit cards are created equal. Which means you’ve got to take care when choosing which is the best for you.

How Cashback Credit Cards Work – The Basics

Cashback credit cards work incredibly simply…

Spend as you normally would, and receive a percentage of what you spend as a ‘reward’ for using your credit card. This cash reward is usually added to your credit card balance at the end of each month or annually.

Some cashback offers only apply to ‘eligible spending’, which means you only get cashback when you spend at certain shops or services. You might also receive different percentages based on where you shop.

Oh, and you might need to spend a minimum amount to receive cashback, or have your cashback capped.

That’s the rules of cashback credit cards summed up. Easy, isn’t it?

The Best Cashback Credit Cards in the UK

There aren’t as many credit cards that reward you with cashback as there used to be. Those that remain aren’t as generous as they used to be, either.

But there are some worth considering – especially if you’d rather have the cash than points or other rewards. Here are the cards that I consider the best today.

American Express Cashback Everyday Credit Card

Best for most card users

With no annual fee and a tiered cashback offer, the American Express Everyday Credit Card is our pick of the bunch.

For the first five months, you’ll earn a welcome cashback bonus of 5% on all your spending, to a maximum of £125 (though this offer is subject to change). After this, you’ll revert to the standard cashback payment of 0.5% on spending of up to £10,000 each year, and 1% on spending over this.

Another thing I like about this cashback offer is that it is not limited. You can also earn cashback for inviting friends to take an Amex card, and have access to various travel benefits such as American Express Experiences.

Cashback is paid annually by a credit on your balance.

American Express Cashback Credit Card

Best For higher spenders

The American Express Cashback Credit Card comes with a price tag: a £25 annual fee. For this, you’ll get much the same benefits as the American Express Everyday Credit Card gives (rewards for inviting friends, travel benefits, American Express Experiences, and more).

However, you also receive a higher cashback payout of 0.75% on annual spending up to £10,000 and 1.25% above this. The welcome cashback bonus is 5% (with a maximum of £125), though only on spending within the first five months.

Cashback is paid annually by a credit on your balance.

Asda Money Credit Card

Best For Asda Fans

Another credit card with no annual fee, this is a great option for cashback, especially if you shop at Asda regularly.

As a new Asda Money Credit Card user, you’ll get a whopping 10% cashback on all your spending at Asda (to a maximum of £100). After this, you’ll revert to 1% cashback on spending at Asda, and 0.3% on spending elsewhere.

The cashback you earn when spending at Asda is in addition to any Asda pounds you earn through Asda Rewards, Star Products and Missions.

Cashback that you earn sits in your account as Asda Cash, and can be spent in store or online.

Santander World Elite Mastercard

Best for balance transfers with cashback on spending

If you have a balance on another credit card and are considering transferring for an interest-free balance transfer offer, the Santander World Elite Mastercard is worth considering.

Though there is an annual fee of £180 (£15 per month), you’ll have zero interest on your balance transfer (and purchases made) for 18 months, and earn 0.5% cashback on your spending, without a cap on cashback.

Cashback earned is paid into your balance each month.

Santander All in One Credit Card Mastercard

low introductory interest rate / no balance transfer fee

With a monthly fee of only £3, as a new Santander All in One Credit Card Mastercard holder you’ll benefit from no interest on balance transfers and purchases for 15 months.

However, after this period expires, interest rates are higher than for the Santander World Elite Mastercard.

You’ll receive 0.5% cashback on all card purchases, and this is paid into your balance each month.

Santander Edge Credit Card

Best for high cashback rewards & travel

Another card from Santander, the Santander Edge Credit Card also costs £3 per month. However, you’ll receive 2% cashback on purchases made for the first 12 months, and 1% cashback after this.

The cashback you can receive is capped at £15 per month, but if you spend £750 per month on the card for the first year, you’ll be up by £120.

Another plus point is that you won’t be charged foreign exchange fees for purchases abroad.

Cashback is paid into your card balance each month.

Comparison At A glance

Alternative Cashback Credit Cards

There are, of course, a few ‘also-rans’ on the list of cashback credit cards. I’ve outlined these in the table below:

As you can see, there is very little to choose between these cards. However, if you are an avid traveller, the Barclaycard Rewards Visa could be a good alternative to the Santander Edge Credit Card.

Pros & Cons Of Cashback Credit Cards

It’s easy to get excited by the lure of cashback just for spending on your credit card.

It’s like ‘earning money for old rope’, as my dad used to tell me when he had an easy job to do for a bit of cash. He also used to tell me that if something sounds too good to be true, it usually is.

While you might earn cashback on your everyday spending, the lure of the reward might also tempt you into overspending. Consequential impulse buys will blow away any good budget planning you’ve done.

Of course, overspending also leads to greater difficulty in paying off your balance when it’s due. Make this mistake, and you’ll be charged interest (at usually extortionate rates, in my opinion).

This will wipe out any cashback you receive. Instead of what you spend putting extra money in your pocket, you’ll be helping to pay the fat-cat bonuses of the bank’s executives.

Increasing credit balances and late or missed payments also count against you on your credit score – and this means you’ll find it harder to get credit, and be required to pay higher interest when you do.

Cashback might only be paid provided you have reached minimum spending levels. If you think this sounds like encouraging you to spend more, you’re right.

Credit card companies make their money by charging interest, and they won’t make a penny if we always pay off our full balances when they are due. They want you to spend more, in the hope that you’ll leave some on your balance.

One last thing: how much cashback you can earn is often capped. They don’t want to give away too much, do they?

Spending That Won’t Earn Cashback

Cashback credit cards can make your life just that little bit easier. Who wouldn’t want a hundred quid or more as a reward for doing what you do every day?

However, it’s worth remembering that there are a few spending items on which you won’t earn cashback. While each card has its own set of rules on eligible spending for cashback, there are several types of transactions that won’t earn a bean in rewards.

First and foremost, cash advances are typically not eligible for cashback. If you withdraw cash from an ATM, you won’t earn any cashback – and will probably incur interest from day one.

Money transfers aren’t eligible, either. Similarly, while a balance transfer could be a great strategy to manage your debt, it won’t contribute to your cashback rewards.

While some credit cards allow you to purchase foreign currency free of charge, it’s treated like a cash withdrawal, and you won’t earn cashback on the transaction.

Lastly, fees and charges you incur on your card don’t earn cashback – whether these are annual charges, late payment fees, or interest.

These few examples show how important it is to use your cashback credit card wisely – plan your spending and use your credit card instead of cash when it pays you to do so, not when it costs you.

Tips to Maximise Your Cashback Profits

Standard cashback deals don’t pay like they once did, but this doesn’t mean they can’t be valuable to you.

If I were to offer you a free week’s shopping for doing nothing, you’d probably bite my hand off. If you use a cashback credit card effectively, that’s exactly what you’ll get (not my hand – the week’s shopping!).

So, how do you use cashback credit cards so that they reward you, without you helping to fill the banks’ bonus pools?

Only Use Your Card for Usual Spending

Practice good spending habits like you should when spending cash or with a debit card. Don’t be tempted to overspend, just because you have some wiggle room with credit (even if you have an interest-free deal on purchases for a period).

Use Your Card for Everyday Spending

Use your cashback credit card for all spending in eligible spending categories – groceries, dining out, your lunchtime sandwich, a round of drinks with your colleagues, and so on. Your spending will mount up quickly, and so will you cashback.

Set a Spending Limit & Set Aside the Money

Make sure you budget effectively, and set a spending limit.

I’ve found the best way to do this is to estimate all that I could spend on my credit card during a month and use an account like Monzo to put this money to one side in a ‘savings pot’ or ‘bills pot’. I can then monitor my credit card spending to make sure I don’t overspend.

Use a Direct Debit to Pay off Your Balance Every Month

Never carry a balance from one month to the next (yep, this is what I recommend even if you aren’t trying to earn cashback).

The best way to do this is to use a direct debit. You’ll never miss a payment or incur interest charges – providing, of course, that you follow the tip above.

Double-Dip With Other Rewards Programs

If you could go to work and get paid twice, you’d jump at the chance, wouldn’t you?

Be strategic with your card use. Consider if you have other rewards programs in place that you can use simultaneously to boost your total rewards.

Signing up with one or two of the best cashback apps could be a great starting point, as can using retailers’ loyalty cards.

Never Withdraw Cash Using These Cards

In most cases, you’ll pay interest on the cash you withdraw. Some cards will charge you a fee for an ATM withdrawal, too. Bang goes your cashback profits.

Use Cleverly for Big-Ticket Items

You want to buy a new car, washing machine, television, or other big-ticket item? Then check if it’s eligible for cashback if you pay with your credit card.

This could be a great way to ensure you meet maximum spending limits on a new card to receive your maximum reward – and is really powerful when you combine with a discount on the purchase price. (Tip: always negotiate a discount and shop around.)

Beware of the Hidden Credit Score Trapdoor

If you are considering applying for a credit card (not only credit cards for cashback features), beware of what I call the hidden credit score trap. When you apply for a credit card, you’ll usually trigger a hard credit check. This could lower your credit score.

Now, this dip in your credit score may be temporary, but it could prove to be significant, especially if you are applying for some major credit, like a mortgage or bank loan.

A hard credit check indicates potentially new debt, and you’ll find lenders are less willing to make credit available to you – and if they do, it probably won’t be on the favourable terms you were expecting.

The answer is to always think twice if a major purchase for which you’ll need credit is on the horizon.

Don’t Fancy a Cashback Credit Card? Here are Some Alternatives

Though there are fewer great cashback credit cards than before, there are still many alternatives that reward you in different ways.

Best Credit Cards for Travellers

Gaining in popularity are credit cards designed to reward you for travelling, while you are travelling, and those that reward you with points that can be exchanged for ‘cash’ toward the cost of hotels, car rentals, experiences, and more.

Air miles points (like Avios) can help you reduce the cost of flying as well as getting upgrades to first class or business class.

Many of the best travel cards – like the Barclaycard Reward Credit Card and the Halifax Clarity Credit Card – provide benefits like free cash withdrawals abroad, and no foreign exchange transaction fees. The Barclaycard Reward Credit Card also pays a cashback of 0.25%.

Other credit cards, such as the British Airways Visa Signature Card, reward high Avios points on spending (with incredible welcome bonuses), as do credit cards like the Chase Sapphire Reserve and Amex Platinum cards.

Best Credit Cards for Supermarket Shoppers

I’ve mentioned the Asda Money Credit Card already, but there are other cards available for those of you who prefer to shop in other supermarkets.

American Express Nectar Credit Card

Receive 3 points for every £1 you spend at participating retailers in the Nectar network, and £2 per £1 elsewhere. With no annual fee in your first year (£30 after this), you could amass more than £75 per year on a weekly shopping bill of £100.

Plus, if you spend £2,000 in your first three months of card ownership, you’ll receive a bonus of 20,000 points (plus earn extra bonus points by referring friends).

John Lewis Partnership Credit Card

Earn 5 points per £4 that you spend at John Lewis, and 1 point per £4 elsewhere. You ‘earn’ around £65 on weekly spending of £100 throughout the year – again with no annual fee.

Tesco Bank Low APR Credit Card

Earn 5 points per £4 spent at Tesco, and 1 point per £8 that you spend elsewhere. Like the John Lewis card, you could earn around £65 on weekly spending of £100 over a year.

There is no annual fee. One feature that makes this card stand out is its very low interest rate compared to competitor cards (though you’ll still want to avoid credit card debt).

M&S Bank Shopping Plus Credit Card

Now I love M&S food, even if it isn’t one of the cheapest supermarkets in the UK. You earn 1 point for every £1 you spend at M&S and 1 point per £5 that you spend elsewhere.

There’s no annual fee, and you could earn up to £52 over the course of a year if you spend £100 a week.

Sainsbury’s Everyday Credit Card

This card offers 3 points per £2 spent at Sainsbury’s and 1 point per £5 elsewhere. With no annual fee, expect a £37.50 yearly gain on weekly spending of £100.

Cashback Credit Cards FAQs

You may have questions about cashback credit cards that I haven’t addressed in the rest of this article. Here are the most common that I’m asked:

Will I be taxed on my cashback?

Though I often refer to cashback as rewards that you earn on your credit card spending, the HMRC doesn’t view them as earnings. They consider cashback rewards more like a rebate, which means you won’t be taxed on the cashback you receive.

Can I use cashback to pay down debt?

Many (but not all) cashback credit cards will allow you to use your cashback to pay down your credit card balance.

However, you’ll need to check the terms and conditions with your card provider. You’ll also still need to make the minimum payment, to avoid late fees and maintain your credit rating.

What happens to my cashback if I return an item?

Should you return any item and receive a refund, the card you used to make your purchase will be refunded, and your balance adjusted as if you had never bought the item. Your cashback will be adjusted to reflect this.

I have a poor credit score – can I get a cashback credit card?

Just as with any application for credit, the lower your credit score, the harder it will be to get credit.

If you have a poor credit score and wish to rebuild it, then it’s much better to apply for a credit card designed specifically for this purpose – and then use it sensibly, paying off your balance every month.

Should You Get a Credit Card for the Cashback?

Earning money for nothing is a great feeling, isn’t it? This is what you get with a cashback credit card. A little extra cash in your pocket for doing nothing more than spending as you normally would is not to be sniffed at, is it?

If you are a regular card user and repay your balance in full each month, then making sure you are putting your spending on a cashback card makes sense.

The key is to manage your card and spending properly. If you don’t, then the interest charges will soon rack up – and what started out as a potential money spinner could become a wealth destroyer.

I’m a firm believer that financial freedom is founded on good money management, and that this relies on effective budgeting.

The trouble is that, for all our best intentions, sticking to a budget is hard – it requires resolute resistance to temptation and, most of all, a deep understanding of how you are spending your money. To do this, you must record and analyse every penny you spend. I’ve never been good at this.

Oh, I start with good intentions; but very soon I forget to take my receipts out of my pocket and add my outgoings in the debit column in my cash book or on my spreadsheet.

Or I promise myself I’ll catch up another day. Then life takes over, and the task slips another day, then a week, and eventually my money management is as haphazard as it ever was.

At least, that’s how it used to be. Now, I don’t get infuriated by those people who know exactly how they are spending their money and always seem to have a little in reserve. I have joined their ranks, and it’s all thanks to budget apps.

In this article, I look at the best budgeting apps in the UK. You’ll find one of these is ideal for you, especially if you’ve decided that 2024 will be the year when you finally take control of your money.

What is a Budgeting App?

Old-style budgeting is an arduous affair. You’d need to be anal about personal financial bookkeeping, noting every income and expenditure and then breaking this down over weeks and months to categorise spending.

Only then could you determine with any accuracy what you were spending on items like mortgage or rent, food, clothes, transport, holidays, eating out, and so on.

My oldest brother was exceptional at keeping a budget. When he passed away, his loft was full of boxes of receipts and budgeting notebooks going back decades.

To do budgeting successfully, you’d need to check and double-check every entry. One mistake, and everything gets screwed up. My father used to spend an hour or two every weekend pouring over his spending for the week. Not my idea of fun!

Fortunately, and thanks to technology, all this budgeting donkey work can be done automatically. The best apps gather all your bank and credit card information seamlessly, and you can view an analysis of your spending in one place at the click of a mouse or the swipe of a finger.

How do Budgeting Apps Work?

Budgeting apps use technology called open banking to collect details of transactions and balances from your financial accounts. This gives you an overview of your finances in one place, meaning easier tracking of income and spending.

The best budgeting apps allow you to categorise spending. They also learn these categories, and quickly categorise all your spending automatically. You’ll see how you are spending your money, and this will help you decide where you should cut back. But it gets better than this.

Many budgeting apps do much more than simply keeping a record of credits and debits and providing a breakdown of spending.

You can set spending limits for different spending categories, identify and cancel meaningless subscriptions, receive alerts if an account is short of funds, and get advice and tips on how to save money and achieve your money management goals.

Which is the Best Budgeting App for You?

Which budgeting app is best for you depends upon your overriding money management need. Perhaps you need an all-rounder, an app that gives a little bit of every feature.

On the other hand, you may want an app that helps you to separate your spending. Perhaps you need an app that helps you to save and invest, or one that pays higher interest on your cash savings.

Whatever your unique needs, there is a budgeting app for you. Here’s my roundup of the best apps that you can access on your smartphone.

Moneyhub

Best Allrounder

Cost	£1.49 p/m or £14.99 p/y
Connect All Your Accounts
Personalise Categories
Set Spending Goals
Set Savings Goals
Spending Analysis
Payment Due Reminders
Overall Financial Position
Advanced Savings Features	✘
Access To Investments	✘
Cashback	✘

Moneyhub connects to all your financial accounts – bank accounts, credit cards, mortgage accounts, savings, investments, and pensions.

You can categorise your spending, make comparisons to previous months, set spending goals, and track your progress. You’ll find that the app encourages you to save an emergency fund, as well as helps you save for specific goals.

It reminds you when payments are due, and you’ll receive tips to help you save money, too.

The app is easy to use, and the spending analysis is presented clearly.

I also like the fact that you can personalise spending categories, and make payments between accounts within the app.

A great app, and well worth the subscription fee of £1.49 per month or £14.99 per year (though new users get six months free).

Emma

Great for Compulsive Subscribers

Cost	£0 – £14.99 p/m
Connect All Your Accounts
Personalise Categories
Set Spending Goals
Set Savings Goals
Spending Analysis
Payment Due Reminders
Overall Financial Position
Advanced Savings Features	✘
Access To Investments	✘
Cashback	✘

Emma works very much like Moneyhub, though it offers a range of subscription models – from the free account with limited features to the Ultimate account with a full range of features at a cost of £14.99.

For most people, the Emma Pro account at £9.99 per month will be sufficient. You’ll be able to do all you can with Moneyhub, plus add offline accounts, set and view rolling budgets, and track your subscriptions.

This is an especially useful feature if you tend to sign up to subscriptions that you then only use intermittently. You can also earn cashback at certain retailers if you have a subscription account with Emma.

Snoop

Best for Saving Money on Household Bills

Cost	£0 – £4.99 p/m or £39.99 p/y
Connect All Your Accounts
Personalise Categories
Set Spending Goals
Set Savings Goals
Spending Analysis
Payment Due Reminders
Overall Financial Position
Advanced Savings Features	✘
Access To Investments	✘
Cashback	✘

Like Moneyhub, Snoop is a great allrounder, but it does offer a few extras. These include vouchers for retailers you use.

You can connect your bank accounts and credit cards, with your financial position shown in your dashboard. The app produces regular spending summaries, which can help you to decide where to reduce spending.

Where Snoop excels is in its ability to help you identify cheaper household bill alternatives and offering switching facilities.

There is a free version, though to access advanced features such as payday-to-payday tracking, adding manual accounts, and net-worth tracking, you’ll need to upgrade to Snoop Plus at £4.99 per month.

Plum

Super for Saving Budgets

Cost	£0 – £9.99 p/m
Connect All Your Accounts
Personalise Categories
Set Spending Goals
Set Savings Goals
Spending Analysis
Payment Due Reminders
Overall Financial Position
Advanced Savings Features
Access To Investments
Cashback	✘

If your primary goal is to create and maintain a budget to help you save and invest, then Plum could be the app for you.

Like the budgeting apps above, you’ll be able to link your UK bank accounts and credit cards to Plum. The system then captures your spending, automatically categorising it. You’ll receive alerts of pending bills.

Where this app differs is that it calculates disposable income available to you and deposits a weekly ‘allowance’ into your linked bank account. It holds cash in an ‘Interest Pocket’ before it is paid out to you.

You can also make use of savings ‘rules’ that will automatically put money aside. These include roundups, a 52-week challenge, and the 1p challenge.

It also offers an investment platform, allowing you to save in stocks and shares ISAs, a SIPP, and a general investment account.

For access to all of Plum’s advanced features, you’ll need to open a Plum Premium account at £9.99 per month.

HyperJar

Good for Separating Spending

Cost	Free
Connect All Your Accounts	✘
Personalise Categories
Set Spending Goals
Set Savings Goals	✘
Spending Analysis	✘
Payment Due Reminders	✘
Overall Financial Position	✘
Advanced Savings Features	✘
Access To Investments	✘
Cashback	✘

This works differently to the budgeting apps I’ve discussed so far. You don’t link your accounts to HyperJar.

Instead, you send money to it, and then spend from it. You can set up different digital ‘jars’ in your HyperJar account, and spend directly from them using your prepaid HyperJar card.

This means it is more hands-on than other budgeting tools, but it does force you to think harder about your spending budget. You can block specific retailers from your account (meaning you won’t be able to spend money there), and create ‘Only’ or ‘Never’ lists.

These allow you to set retailers for specific jars, or that are banned from specific jars – great if you cannot trust yourself (or a partner) to spend money you shouldn’t!

HyperJar is free to use, but doesn’t give the full analysis you get with other budget apps. However, if you want to keep all your spending under one roof, instead of using different cards, then this is a useful tool.

Curve

Good if You Have Multiple Cards

Cost	£17.99 p/m
Connect All Your Accounts
Personalise Categories
Set Spending Goals	✘
Set Savings Goals	✘
Spending Analysis
Payment Due Reminders	✘
Overall Financial Position	✘
Advanced Savings Features	✘
Access To Investments	✘
Cashback

Curve provides usual budgeting features – such as categorisation and spending analysis – but offers a few unique features that could help you control your spending and reduce your costs.

One of these is the ‘Go Back in Time’ feature. This lets you switch a card payment from one card to another up to 120 days after the transaction has been made.

You also get up to £1,000 every 30 days of fee-free spending abroad (which is why we have named it as an alternative to the best travel credit cards). Oh, and you could receive cashback on your everyday spending.

The downside? The Curve card takes some getting used to – you’ll need to pair your spending with the best card to get the most from it, and to access all available features you’ll need to subscribe to the Curve Metal card at £17.99 per month.

Monzo & Starling

Digital Banks with Budgeting Features

Cost	Monzo £0 – £15 p/m	Starling Free
Connect All Your Accounts
Personalise Categories
Set Spending Goals
Set Savings Goals
Spending Analysis
Payment Due Reminders
Overall Financial Position
Advanced Savings Features
Access To Investments
Cashback

Monzo and Starling are great digital alternatives to traditional banking, and both offer advanced budgeting features, including categorisation, setting spending limits, and the ability to set aside money in separate pots.

You can connect other accounts to your Starling and Monzo apps, and take advantage of cashback offers. They both include features to help you save, like roundups and savings pots, and both offer access to investment products.

Neither Monzo nor Starling charge fees to use your card when spending abroad.

Are Budgeting Apps Safe?

If you’re like me, you’ll be a little apprehensive about linking your bank accounts to an app. You and I needn’t be.

All these apps use safe, open banking technology, encryption, and extra-safe login processes to help protect your data and your app from being hacked.

They are also fully regulated in the UK, meaning they must comply to strict regulations that cover things like your identity, and banking and card account details.

Do You Need a Budgeting App?

With so much hanging on good money management, keeping track of your money is crucial. I’ve found using a budgeting app to be something of a lifesaver. Before you commit to investing in one, make sure you really need one. You do if you:

Want to get a clear picture of your financial situation

Have you ever found yourself asking where all your money has gone (again)? A budgeting app will provide you with an accurate overview of your finances, making it easier to understand your financial health.

Find it challenging to stick to a budget plan

Sticking to a budget can be a struggle. It only takes one slip-up, one missed entry, to blow the best-laid plans apart. Budgeting apps automate most of the process of budgeting – and this makes tracking your finances much more straightforward.

Usually miss your financial goals

Whatever you’re saving toward – a holiday, a new car, Christmas, or just to build up an emergency cash fund – a budgeting app can help you set realistic financial goals and stay on track to achieve them.

Are an impulsive spender

Do you find it hard to resist the temptation of a ‘bargain’? Budgeting apps can help you to control those urges to spend.

Not only do you have an up-to-date and accurate assessment of your financial position to deter you, but you can also set spending limits that bar you from spending.

Find budgeting a chore and a bore

Budgeting accurately requires dedication and a commitment to taking time out daily or weekly to record all your spending. A budgeting app automates most of the process of budgeting, giving you an accurate assessment without the need to spend time on mundane money management tasks.

9 Tips to Get the Most from a Budgeting App

As with any tool, you’ll only get the maximum from a budgeting app if you use it correctly. Here are my tips to take maximum advantage of the budgeting app you choose:

1. Choose the best app for your needs

Budgeting apps have different strengths. It’s critical to choose the one that matches your needs. Do you want to save money on your household bills, save and invest more easily, or have a clearer picture of your overall financial position?

2. Set your spending limits and track them

Use the budgeting app’s capability to set spending limits, and keep track of your spending.

3. Make use of alerts and reminders

Many apps offer alerts for due payments or when you’re nearing a spending limit. Use these to avoid late fees and overspending.

4. Analyse your spending

Keep a watchful eye on your spending habits to identify trends and spending patterns. Even slight changes in these could make a significant difference to your overall financial wellbeing.

5. Regularly update your accounts

You’ll need to update the link to your accounts every 90 days. Make sure you do this, as without your accounts linked and updated, the budgeting app cannot build an accurate financial picture.

6. Utilise categorisation features

If the app you use has categorisation features, use them. These will help you understand where your money is going. You can use this knowledge to help you decide where you can reduce your spending.

7. Utilise savings and investment features

Automated features like roundups take the strain out of saving. By using such features, you can use the power of the app to grow your wealth without the hassle – a painless way to achieve your longer-term financial goals.

8. Review your budget regularly

Check your spending habits regularly, and when you do so update your budget accordingly. You might wish to do this monthly or quarterly, and should certainly do it as part of your regular financial planning routine.

9. Be patient

It takes time to break bad financial habits and build good ones. The trick is to be consistent. After the initial rush of enthusiasm, ensure you keep a watchful eye on your budget by opening and checking the app as part of your daily routine.

The Bottom Line of Budgeting Apps

A budgeting app can be a powerful ally on your journey to financial freedom. If you struggle with keeping your spending in check, have specific financial goals you wish to achieve, or simply want to make money management less of a chore and bore, a budgeting app could prove invaluable.

However, it’s crucial to choose an app that aligns with your financial goals and habits. Then it’s a question of using it consistently, and in a way that will support you on your financial journey.

There’s a lot to be said for doing your weekly (or monthly) shopping online. It’s convenient, saves time, and eliminates the stress of touring a supermarket crowded with people whose sole objective appears to be to stop you shopping.

It can also save you money (no more impulse buys).

On top of these obvious advantages, supermarkets often give discount codes and special offers if you do your shopping online, reducing the cost of in-store goods.

Sold on the idea of doing your shopping online? Then the only question is, which is the cheapest? Not as easy to answer as you might think. Which is why I’ve written this article.

The Basics & Delivery Charges

There are two ways to shop online:

1. Click and collect – you shop online and collect your order from the store

2. Home delivery – you shop online and have your shopping delivered to your home

When home delivery first started, supermarkets like Tesco enticed you to ‘sign up’ with free delivery. Unfortunately, those days are long gone. Most supermarkets now charge for home delivery.

But compare this charge to the cost of fuel, parking, and time (and an expensive coffee and cake during a break from shopping) and you’re quids in.

However, you can save a huge amount on delivery charges if you sign up for a delivery pass. You’ll be charged a one-off fee, with no more delivery charges for the period your delivery pass covers.

Ready to find out which is the cheapest online supermarket for you? Then let’s get started.

Aldi

You’ve got to love Aldi, haven’t you? It stocks a great range of produce (much if it British), and is in a constant battle with Lidl as the UK’s cheapest supermarket. However, it doesn’t measure up quite so cheaply in the delivery and click and collect race.

Aldi offers home delivery in partnership with Deliveroo. You can order your groceries online for same-day delivery with Deliveroo at a cost of £1.99. The minimum-spend amount for home delivery is £25.

Aldi doesn’t offer a delivery pass itself. If you sign up to Deliveroo Plus – which costs £11.49 per month – you get unlimited ‘free’ deliveries.

Aldi’s click and collect service costs £4.99.

Payment for delivery is taken when you place your order. For click and collect, Aldi requests a pre-authorisation from your card and takes this sum upon collection.

Amazon & Amazon Fresh

When it comes to online shopping, Amazon practically invented the concept. So, you’d expect them to be hot with your online grocery shopping. Subject to the stores in your area, you’ll be able to buy produce from Amazon Fresh, Morrisons, and Co-op.

You’ll need to be an Amazon Prime member to use Amazon’s home delivery service. This membership is currently £8.99 per month.

The minimum spend amount for free home delivery is between £40 and £60, again depending upon your region. Delivery is available in two-hour time slots.

If your order is below £60, there is a surcharge of £2 for home delivery.

You may click and collect with no fee at Morrisons, providing you spend more than £30.

Asda

Asda charges between £2.95 and £4.50 for home delivery, with a minimum order amount of £40.

You can shop from over 25,000 products, and pay for them by credit card, debit card, Asda eVouchers and Asda gift cards.

For click and collect, there is no minimum. Charges are:

• 50p for collection the day after (or later) you place your order (£25 minimum spend)
• £1.50 for same-day collection 4 hours or longer after you place your order (£25 minimum spend, with a £4 delivery surcharge on orders below this)
• £3.50 for same-day collection within 4 hours of placing your order (No minimum spend)

Payment is usually taken on the day of your delivery, though may be taken the day preceding delivery.

You can have your shopping delivered seven days a week. The cheapest delivery slots are afternoon and evenings Monday through to Thursday.

Asda Delivery Pass

If you shop with Asda regularly, you can save up to £199 per year on delivery charges (based on a midweek shop with a delivery charge of £4.50). Delivery Pass options are:

• Anytime 12-month pass – £6.50 per month or £65.00 per year
• Midweek 12-month pass – £3.50 per month or £35 per year

As an Asda Delivery Pass holder, you’ll also get year-round priority to delivery slots, including at Christmas and Easter.

As a price promise, if you don’t save money with your delivery pass vs shopping online as and when you need it, Asda will give you an eVoucher for the difference so that you won’t lose out financially.

Co-op

Co-op has partnered with Deliveroo to offer a home delivery service.

For home delivery, you only need to spend £15 or more, and Co-op promises to deliver in less than two hours. You’ll need the Deliveroo app to complete your shopping for home delivery, though.

You’ll be charged a minimum of 99p for delivery.

Co-op also offers a free click and collect online shopping service.

Iceland

Iceland does not offer a Delivery Pass, but you won’t need one if you spend £40 or more and want next-day delivery – do this and you won’t be charged a delivery fee.

However, if you spend less than this, delivery charges start at £3.

If you wish to click and collect your shopping list, Iceland provides a free service for orders over £25.

Payment is pre-authorised and taken from your bank account on the delivery date.

In short, though, Iceland is the cheapest home delivery supermarket, with deliveries between 8am and 9pm Monday to Saturday and 8am to 9pm on Sundays (all deliveries booked during two-hour time slots).

Morrisons

Morrisons are trying hard to increase their share of the home delivery market. They have lowered the minimum-spend amount from £40 to £25, and reduced home delivery charges. In addition, you’ll find hundreds of items ‘lowered and locked’ in price online.

You’ll need to register as a customer online before you can order online. As a new customer, you may receive an incentive such as a £10 discount on a £60 online grocery spend.

Delivery costs £1.50, while click and collect can be booked in one-hour time slots for £1. Payment for delivery is taken within 48 hours of delivery.

If you are a regular Morrisons shopper, the £5-per-month Delivery Plan is your best bet to save money.

Ocado

If you prefer branded products (including Marks & Spencer) but hate traipsing from store to store, you might fall in love with Ocado. You’ll find many brand products available for delivery with this service, and the occasional small store surprise, too – and they promise to match Tesco prices.

Delivery costs start from 99p and rise to £6.99. If your order is less than £75, there is a minimum charge of £2.99. Payment for your shop is taken after delivery has been made.

There is no click and collect option.

Ocado Smart Pass

The Ocado Smart Pass can save you hundreds of pounds on the cost of home delivery. You also get 10% off 5 items (including some big brand goods), priority access to Christmas deliveries, and exclusive access to 50% off sales. Oh, and a free gift each year!

For free delivery, you can choose the following Smart Passes:

• Anytime Monthly, at £8.99 per month, £49.99 for six months, or £89.99 for a year
• Midweek (Tuesday to Thursday) at £3.99 per month, £22.49 for six months, or £39.99 for a year

Sainsbury’s

To order online, you must spend a minimum of £25. To get the cheapest home delivery deals, you’ll need to increase this to at least £40.

Sainsbury’s charges between £1 and £5.50 for delivery, but if you spend less than £40 then you’ll be charged £7 – the actual price is confirmed at the time of your order. Delivery is available 7 days per week in one-hour time slots.

If you wish to click and collect, you’ll need to choose a one-hour time slot for collection. The standard charge is 50p, though baskets under £25 will incur a £4 surcharge.

Same-day click and collect is charged at £6 for baskets under £25 and £2 for baskets over this amount.

Payment is taken when your order is ready for delivery or collection.

Delivery Saver Plans

Sainsbury’s offers several delivery subscription plans. These could save up to £168 per year in delivery charges based on a weekly delivery, with a minimum spend of £40 per delivery:

• Anytime Monthly: £7.50 per month
• Anytime 6-Monthly: £43 single payment
• Anytime 12-Monthly: £80 single payment
• Midweek Monthly: £4 per month
• Midweek Monthly: £40 single payment

Tesco

You have three options for delivery or click and collect when you shop online with Tesco:

1. Home Delivery

One-hour time slots or ‘flexi-saver slots’. You’ll receive updates on your delivery day to keep you informed of delivery time.

You must spend a minimum of £50, with a charge of £4.50 for a one-hour slot and £3 for a flexi-saver slot (a four-hour period). If you spend less than this, you’ll be charged an extra £50.

2. Click & Collect

Shop online, book a collection slot, and pick up from your chosen location. You’ll be charged from 25p for next-day collection. You can collect on the day you place your order for up to £2.

3. Whoosh

A great service if you’ve forgotten something. (I used this recently when cooking for a ‘Come Dine with Me’ night for my brother and his wife.)

Charges are the same as Tesco’s usual pick, pack, and delivery service, though if you spend less than £15, you’ll incur a £2 surcharge. Delivery time is as little as 20 minutes where the Whoosh service is available.

Tesco will pre-authorise payment from your card. On delivery day, the full amount of your order will be taken (with any delivery charges applied) and the £2 pre-authorisation will be deleted.

Delivery Saver Plans

Like Sainsbury’s, Tesco offer a range of Delivery Saver Plans, saving up to £176 on delivery charges. Example plans are:

Waitrose

You can shop for all your grocery products and for John Lewis items through the Waitrose Group. Payment is usually taken on the day of delivery.

You’ll need to spend a minimum of £40 for home delivery, for which you will also be charged. This charge is only made plain when you have entered all the items on your list, and appears to depend on the time slot requested as well as the size of your shopping basket.

The supermarket has added a four-hour slot option which is cheaper than one-hour delivery slots.

Waitrose also offer a click and collect service, which is free of charge but, like home delivery, has a minimum spend requirement of £40.

Tips to Maximise the Benefits of Home Shopping

I love online shopping. It saves me time, reduces the stress of shopping when it’s busy, and allows me to do other things. Why would I want to spend two/three hours shopping, with the expense of fuel, parking, and coffees, when I could spend that time earning money from home or with friends and family?

Plus, to maximise the benefits of shopping online I’ve got a few key strategies:

Combine Online Shopping with Reward Schemes

Most of the supermarkets and home delivery services we’ve mentioned in this article also offer reward schemes. This may include discounts, points, or even cash-back. However, they change quite regularly.

Keep your eyes on the prize! When you combine home shopping with supermarket reward schemes, the rewards you accumulate can quickly add up.

Stick to a List

Impulse buys are the easiest way to overspend and bust through your shopping budget. By creating a shopping list and only ordering what you need, you’ll avoid this costly shopping mistake. (Seeing the total in the basket really helps me with this, rather than waiting till I get to a till!)

Sign Up for Promotions

Take Advantage of Discounts & Special Deals

Okay, I know that I said don’t stray off your shopping list, but occasionally there are times when a special offer is worth investing in.

The secret here is to only take advantage of these on items that you will use. For example, is there a half price deal on one of your regular shopping list items that you could put in the freezer?

Buy a Delivery Pass If You Are a Regular Shopper

If you shop regularly at a particular store, consider investing in a delivery pass. You may need to pay upfront for the best delivery pass deal, but over time this will pay dividends.

Online Supermarkets – Unpacking the Basket

The question of which is the cheapest online supermarket in the UK is not black and white.

There are many factors involved, including delivery charges, minimum spend requirements, availability of delivery or click and collect options, and membership or loyalty programs. It also includes your personal preference.

Overall…

Iceland emerges as the cheapest delivery option, though you’ll need to weigh the cost against the best in-store prices found at Aldi and Lidl.

Asda, Co-op, Morrisons, Sainsbury’s, Tesco, and Waitrose offer delivery saver plans to suit various shopping preferences and habits.

For convenience and product choice, Ocado and Amazon may be best.

Tesco’s Whoosh service is ideal for urgent needs.

Whichever you choose, use our tips to maximise the benefits of shopping for your groceries online. Do this and you’ll enjoy the experience and convenience of online shopping while keeping your costs down.

The Tesco Clubcard is the supermarket’s equivalent of the old Green Shield Stamps. I used to sit and stick the stamps collected by my parents into special books when I was a kid. The idea was to promote customer loyalty by giving something back in return.

Times have moved on since those stamp-licking days. Now, supermarkets like Tesco offer loyalty cards. Shop with these, and all manner of discounts and other juicy rewards are available to you.

But is having a Tesco Clubcard really worth it? That’s the key question we answer in this article.

What Is Tesco Clubcard?

Tesco introduced the Clubcard scheme almost 30 years ago. Since then, and with advances in internet and smartphone technologies, Clubcard has evolved into a scheme that:

• Rewards you for spending at Tesco and associated stores
• Offers Clubcard customer discounts on a range of products
• Allows you to turn your Clubcard points into spending vouchers immediately on your mobile phone

You can use your Clubcard in-store or online, and with a growing number of Clubcard partners.

You’ll be joining around 17 million Clubcard holders in the UK who are already enjoying the benefits Tesco Clubcard has to offer.

With Clubcard, Points Certainly Make Prizes

When you spend and flash your Clubcard, you earn points. These points can then be exchanged for vouchers.

How many points you’ll receive depends on how you spend. How much these vouchers are worth depends upon how you spend them.

Here are a few examples:

• For every £1 you spend on groceries, you’ll earn 1 point. Once you have accumulated 250 points, you’ll receive a voucher worth £2.50.

• You can also exchange points for vouchers as soon as you reach 150 points – you can do this online or on your Tesco Clubcard app.

• When you buy your petrol or diesel at a Tesco petrol station, you receive 1 point for every 2 litres you buy.

• You can also earn points when you use a Tesco mobile – at the rate of 1 point for every £1 spent.

• Take a 15-minute Tesco survey, and earn 25 points.

Other ways you can earn points include:

• At Tesco Pharmacy
• Having your car washed at Waves Hand Car Wash
• By recycling your printer ink

Tesco often run special points promotions, too. For example, as I’m writing this, you could receive 500 points for signing up with Halfords Motoring Club Premium.

Double Your Clubcard Voucher Value at Tesco Reward Partners

Tesco has teamed up with over 100 other retailers and organisations that will accept Clubcard vouchers in lieu of payment (or part payment).

Here’s a flavour of the partners who will give you £1 of value against every 50p of Clubcard vouchers, though bear in mind these may change from time to time:

Home & Essentials

• New Skills Academy (£1 for every 50p of vouchers)
• RAC Breakdown

Eating Out

• Hungry Horse
• Chef & Brewer
• Prezzo

Travel, Hotels, & Holidays

• Best Western
• Royal Caribbean
• Hoseasons
• Butlin’s (minimum £5 of vouchers)
• Hotels.com (minimum £5 of vouchers)

Lifestyle

• Fitbit
• SpaSeekers
• English Heritage

Days Out & Entertainment

• Alton Towers Resort
• Blackpool Pleasure Beach
• Cineworld
• Pleasurewood Hills
• West Midland Safari Park
• Spinnaker Tower
• The Beatles Story Exhibition
• Edinburgh Dungeon

Tesco Clubcard Prices

Here’s one of the best benefits of being a Clubcard holder: Clubcard Prices.

If you shop at Tesco, you’ll notice a lot of items have yellow price tags. These are discounted prices for Clubcard customers. The discounts can be as much as 50%!

I recently did a little shopping at Tesco, and took a great deal of interest in these discounts. They can be by way of a straight drop in price, or on volume deals (2-for-1 or 3-for-2 as examples).

Clubcard Points on Tesco Bank Credit Cards

Another way to squeeze the maximum from your Clubcard is to spend using a Tesco Bank Credit Card. When you buy your groceries at Tesco and do this, you’ll receive 5 points for every £4 you spend instead of 4.

You’ll also receive a point for every £4 you spend on Tesco fuel, plus 1 point for every litre you buy (compared to a point for every 2 litres otherwise).

Plus, use your Tesco Bank Credit Card for other shopping, and you’ll get a Clubcard point for every £8 you spend.

How does this stack up in Clubcard points?

 You’ll find a handy calculator on the Tesco website.

Here’s a calculation I did based on the following monthly expenditure:

• Spending at Tesco (online and instore) = £400
• Spending on Tesco fuel = £100
• Spending outside Tesco = £300

Over a year, this spending pattern will give you 7,595. This is 2,195 more points than you would receive using only your Clubcard. That’s worth £75 in Clubcard vouchers to spend in Tesco – or £150 with Tesco partners.

This isn’t accounting for the discounted Clubcard prices you’ll benefit from. Not bad for doing no more than you usually do.

(Tip: Always pay off any credit card balance when it is due to avoid interest charges.)

Clubcard Coupons

Just when you thought you’d exhausted the ways that Clubcard rewards you, up pops another!

As a Clubcard holder, Tesco will send you Clubcard coupons every now and then. You’ll only receive these if you opt for Tesco Marketing (they’ll collect your data and use it to send advertising to you).

If you’re happy with this, sit back and wait for your coupons by post or into your Tesco Clubcard app.

You can use these coupons to reduce the cost of items you buy regularly or ones that Tesco wants to persuade you to buy, depending on the coupon you receive. You can spend them in-store or online.

Clubcard Plus

Depending on your spending habits, you might opt for Clubcard Plus. This is a premium Clubcard account, which costs £7.99 per month.

Why would you want to do this? Here are the benefits you’ll gain as a Clubcard Plus customer:

• 10% off your Tesco shopping each month. You’ll be restricted to two shops per month with a maximum discount value of £40. Make the most of this by shopping every other week, or doing a big monthly shop.

• Get 10% off F&F and selected Tesco brands always.

• Receive double the data on a Tesco Mobile contract.

• Apply for a Clubcard Plus Credit Card and get up to 24 months interest-free credit from account opening, pay no fees on foreign exchange, and benefit from earning Tesco Clubcard points almost anywhere you spend money when you use your Clubcard Plus Credit Card.

While these benefits sound terrific, before you rush to apply for a Tesco Clubcard Plus card, you’ll need to figure out if this is worth it.

To be honest, if you only do small shops at Tesco, the answer is probably no.

If you tend to spend more on each shopping trip to Tesco, then once you hit £80 shopping in two trips or less, your monthly premium is paid for – and anything in excess of this will save you money. (Remember that two-trip and/or £40 discount limit.)

Signing Up for a Tesco Clubcard Is Easy

It couldn’t be easier to get a Tesco Clubcard. Go to the Tesco website, create a Tesco account, and sign up for a Clubcard at the same time.

You can also do this from the Tesco app. It takes seconds to apply, and you can start accumulating Clubcard points immediately.

It’s free to join unless you decide to sign up for the Tesco Clubcard Plus.

You can share your Tesco Clubcard, too. Which means that anyone you know can use your Clubcard to get discounted Clubcard prices and add to your points balance at the same time!

The Bottom Line

The Tesco Clubcard scheme is a great way for you to save money. It works a little like a cashback scheme, but with vouchers for you to spend.

These equate to 1% off your shopping, but you can squeeze extra value from them by using them at Tesco partner brands.

You’ll also benefit from discounts specifically for Clubcard holders, and receive coupons now and again that could save you even more money.

If you are a big shopper at Tesco, you might opt for the premium Clubcard Plus. However, you’ll need to calculate if this is worth the monthly cost.

Finally, you could boost the value of your Clubcard further by applying for a Tesco Bank Credit Card or Clubcard Plus Credit Card.

If you do this, remember to pay off your balance in full before you start getting charged interest.

Having said all this, Tesco is not the cheapest supermarket in the UK. Granted, its Aldi Price Match promotion is helping it to regain its price competitiveness. Thus, it might not be worth switching your regular supermarket to Tesco just to benefit from becoming a Clubcard member.

But if you are a Tesco shopper, or use the store now and again, then I’ve only got one question for you – why haven’t you got a Clubcard?

Ever heard of the Blue Light Card? It’s the single most amazing discount card in the UK.

If you are eligible for one, you’ll find its value trounces all other cashback and loyalty cards, with exclusive discounts at thousands of online and high street retailers, service providers, restaurants, and more.

In this article, we examine the unrivalled benefits of the Blue Light Card. We look at eligibility for the Blue Light Card, and we take a peek at some of the incredible discounts available.

What Is the Blue Light Card?

The Blue Light Card is an exclusive discount card, reserved for a list of very special workers in the UK.

The name is a bit of a giveaway – you’ll be eligible if you belong to a list of specific keyworkers in the UK. We look at this list in more detail later in the article.

The card is available as a physical card and in a virtual format that you can store on your mobile phone, and costs only £4.99 for a two-year membership.

Where Can You Use a Blue Light Card?

Visit the Blue Light Card website, and you’ll get a taste for the types of outlets in which you can use your Blue Light Card.

However, you won’t get the full list unless you register for the discount card. It’s as if the discounts are that good, they don’t want the general public to know about them!

So, here are the basics first:

• The Blue Light Card is accepted in more than 15,000 national and local retailers.

• You can use it instore or online.

• You’ll save money on anything from groceries to days out, to holidays, fashion, gifts, mobile phones, insurance, and more.

• Discounts can be as high as 50%. Yes, you read that right. 50%!

Here’s a list of a few of the most popular Blue Light partners:

Blue Light Card  – Making Your Whole Life Cheaper

There are so many discounts that you’ll find it hard not to save money on almost anything you need or wish to buy. From major brands to boutique shops, you’ll be hard pushed to walk down any high street without receiving money-saving prices.

The discounts aren’t limited to retail stores, either. As well as being able to use your discount online, you’ll also find that you will save money at restaurants, days out at theme parks, holiday bookings, mobile phone contracts, and insurances.

Let’s look at a few of the Blue Light discount partners you could save money with.

Weekly Shopping

As a Blue Light Card holder, you can wave goodbye to rocketing food prices. Most supermarket chains will accept the Blue Light Card, though the discounts do vary.

Some discounts are given as a cash discount upon checkout online or when you pay in-store. You can also buy discounted gift cards from retailers like Argos, Marks & Spencer, and Tesco.

Supermarket chains and grocery stores that partner with Blue Light include:

• Bargain Foods
• Co-op
• Iceland
• Marks & Spencer
• Sainsbury’s

Clothes & Fashion

Want to look your best without breaking the bank? Whip out your Blue Light Card at any of the following stores:

Health & Beauty Savings

Look great for less! From head to toe, your body will thank you for all the discounts you get on all the things that matter most for your health. Here is a small selection of health and beauty discounts available to you:

Home & Garden

As well as ourselves, we also love our homes and gardens to look good, don’t we? When you have guests round for a takeaway treat (paid for with your Blue Light discount, of course), it’s great to sit and relax with a cheeky bottle of wine (thanks to your discount from Naked Wines) in beautiful surroundings.

Achieve home style you want for less with discounts from retailers that include:

Electrical Goods & Mobile Phones

Despite the soaring price of electricity, we can’t get enough of our electrical products. Whether it’s the latest iPhone, a state-of-the-art laptop, or the latest craze for airfryers (Mrs B and I have just invested in our first), our lives are packed with electrical products.

Here are a few of the stores and online outlets where your Blue Light Card discounts could shock you:

Mobile phone users aren’t ignored, either. Ring up discounts of up to 25% at:

• O2
• EE
• Virgin Mobile
• And more

Discounts for Motorists

From discounts on fuel to money-off deals on new cars, you could save hundreds of pounds each year as a motorist. Drive away with a new car with 10% off.

Save money on everyday car purchases. Slash your fuel costs.

As a motorist and a Blue Light Card holder, you can take advantage of great deals and discounts at the following retailers among others:

Restaurants, Food, & Drink

Who doesn’t like an occasional culinary treat? When you’re shopping with kids on a busy Saturday morning, what better way to unwind than a light lunch before you head home? After a busy day, isn’t it refreshing to pop into a country pub for a swift shandy?

With a Blue Light Card, these special moments in life don’t have to leave your bank account on life support. Here are just a few of the places where discounts will apply:

Holidays & Days Out

Whether it’s a short getaway or your family’s annual holiday, the more you can save the better time you’ll have. All the following companies offer fantastic money-saving deals to Blue Light Card holders – meaning you have more cash in your pocket to create lifelong memories:

For wild days out, you’ll find discounted tickets available with some of the UK’s major theme parks and tourist attractions, including:

I remember when a trip to the cinema only cost a few quid. Now it seems to cost an arm and a leg. But not if you hold a Blue Light Card. Save money on tickets and snacks at:

Discounts for Pet Owners

Is your household one of the 57% of UK households that own a pet? Whether you own a dog or cat, an exotic pet, or a hamster, you’ll want the best you can afford for your them.

With the Blue Light Card, you can afford a little better for your beloved companion. Specialty retailers that offer discounts to pet owners include:

Other Ways to Squeeze Value from Your Blue Light Card

As a Blue Light Card holder, you don’t only get access to draw-dropping discounts. There are other ways to take advantage of your membership. Here are three you’ll love.

Blue Light Tickets

The list of discounts is by no means exhausted yet. If you love to attend live events, your Blue Light Card could help you get to watch your favourite sports team or artist for free.

The Blue Light Tickets site offers ballots and first-come-first-served ticketing. All you need to do is sign up via your Blue Light Card to take part.

Imagine scoring tickets from a free-to-enter draw, and attending music, comedy, theatre, or sports events with no cash outlay needed.

This is a site to watch fervently. As you can imagine, competition is strong, and tickets are limited. You’ll need to be quick to strike gold.

Members Days

Blue Light also runs ‘Members Days’ at several major theme parks across the UK. These may be for a single day, or last a whole weekend.

These events are usually booked up quickly after the heavily discounted tickets go on sale at the end of January. Again, you’ll need to be quick.

To give you a flavour of what’s on offer each year, here are the dates and locations for 2024’s Members’ Days (Edit: checked May 2024 – included past 2024 dates for clarity.):

• Drayton Manor Resort – 16th March
• Legoland Windsor Resort – 9th March / 10th March / 9th November / 10th November
• Thorpe Park – 17th March / 9th November / 10th November
• Warwick Castle – 27th April / 22nd November
• Chessington World of Adventures – 9th November / 17th November

These events offer incredible value, especially for families. (Even better than the up to 50% discounts available on tickets to these parks as a Blue Light Card holder.)

On these days, many of the parks provide free parking and discounted food, drink, and shopping on the premises.

Competitions & Giveaways

You’ll also find regular giveaways and competitions to take part in. These are usually publicised on Blue Light Card’s social media accounts. Visit them as part of your weekly schedule to keep abreast of all that Blue Light has to offer – Tuesdays and Thursdays is when you can enter live competitions.

At the time of researching and writing this review, here are a few of the most recent competitions and freebies available:

• 15 pairs of tickets for All Elite Wrestling at Wembley Stadium
• Win an exclusive beauty bundle worth more than £300 from Elizabeth Arden
• A hot air balloon trip to be won
• Win a £100 Amazon gift card

The Best Blue Light Discounts

It is hard to beat any of the discounts available as a member of Blue Light. But some of the discounts are almost unbelievable. So, we thought we’d highlight a few of them here, so that you know what you’re missing.

(Remember, many of the discounts available will change over time. They may expire, alter, or be replaced by an even better deal!):

• O2 – Discounts up to 25%
• Argos – Buy Argos vouchers to receive between 4% and 8% discounts
• Asda – A 10% discount awaits you, in the form of cashback applied to your Asda Rewards App
• Burger King – 20% off your bill
• Clarks – 20% off full-price footwear
• Domino’s Pizza – 50% off
• EE – discounts of up to 20%
• Esso – get a free Esso Card for discounted fuel
• Go Compare – an Amazon gift card worth up to £30
• Halfords – Half-price MOTs and 7% off in-store purchases
• New Look – 15% of full-price items
• Nuffield Health – 30% off monthly subscriptions
• Rhino Home Protect – 10% off homebuyers’ protection insurance
• Sky – Sky Q and Superfast Broadband for £30 per month
• TGI Fridays – 20% off
• Virgin Atlantic – £60 off flights
• Vodafone – Discount of up to 25%
• Warmzilla – £100 off a new boiler
• Wilko – Up to £15 off online shopping

Seasonal Specials

As if the range of discounts, Blue Light Tickets, giveaways, and competitions wasn’t broad enough, along come the next great deals from Blue Light – seasonal specials!

Christmas is the biggie, of course, and you won’t be disappointed. Christmas offers are usually published early in October. Last year, they released 30 bumper Christmas offers from some amazing retailers. These included:

• 10% off when shopping for the kids at shopDisney, JoJo Maman Bébé, The Entertainer, and My 1^st Years
• 20% off at The Body Shop, GHD, and Beauty Bay
• 15% off Converse, and Cath Kidson
• 20% off online and instore purchases at New Look
• 20% off at Goldsmiths
• 30% off at Abbott Lyon
• 20% off Virgin Experience Days

£4.99 for a two-year membership with Blue Light? You’ll smash through that value with only a couple of Christmas gift purchases!

Nestled between Halloween and Christmas is Black Friday when sales prices couldn’t get any better. Or could they? The answer is a very loud ‘yes’ if you have a Blue Light Card.

Only a month before Christmas, these Black Friday deals will help you save even more money and your gifts be even more looked forward to. A few of the previous Black Friday specials included:

• Hotpoint – an extra 30% off Black Friday prices
• Lovehoney – an extra 20% off Black Friday prices
• Ninja Kitchen – an extra 10% off Black Friday prices
• River Island – an extra 20% off Black Friday prices
• Virgin Experience Days – an extra 20% off Black Friday prices

How Do You Claim Your Blue Light Discounts?

One of the bugbears of the Blue Light Card is that there are so many ways in which to claim your discounts:

• In some stores, you can simply show your card to have discounts applied on the spot.

• Other times, you’ll need to buy a gift card or voucher from the Blue Light website to use instore – and you may need to wait a few days for these to be posted to you.

• If you have gift cards from Blue Light, you can top them up on the site, but this may also take a couple of days to activate – so shopping trips need to be planned.

• When shopping online, your physical card isn’t going to cut it. Usually, you’ll need to get a unique discount code from Blue Light to use on a retailer’s eCommerce site.

• Similarly, some restaurants may ask for a discount code.

In short, you’ll need to make sure you use the right method, and have the correct vouchers or codes when you go shopping for Blue Light Discounts. This means a little bit of work on the Blue Light website before you go shopping. But boy, is that effort worth it!

Are You Eligible for a Blue Light Card?

Unsurprisingly, a membership card this good is not available to everyone. This card is designed to give certain workers (and, in some cases, retirees) a little thanks for their service. The clue as to who is in the name, though it’s not only for blue light workers.

Below are the organisations that are covered for Blue Light Card eligibility:

Paid Employee

Volunteer

Retiree

• Armed Forces
• Police
• Fire Service
• NHS

Discounts while you work, and throughout your retirement. An incredible gift to those who serve.

How Much Does the Blue Light Card Save Its Members?

It’s not rocket science to understand that the Blue Light Card is popular. But how popular is it, and how much does it really save its members?

Here are a few numbers from the Blue Light website for 2022:

• Blue Light Card membership increased from 2.39 million to 3 million during the year
• Members saved over £250 million
• More than 100,000 free event tickets were given away to Blue Light Card members
• More than 50,000 tickets were sold for Member Days

What do these numbers really mean? The average Blue Light Card member saves around £100 per year because of their membership. Around £200 over two years – a terrific return for a £4.99 investment.

How to Maximise the Savings Potential of Your Blue Light Card

What makes this card so special is its exclusivity and the savings you can make.

Anyone can sign up to the best cashback apps or carry a Tesco Clubcard, but eligibility for the Blue Light Card is strictly limited to certain occupations.

However, we think that the average savings per year of around £100 could be much higher. You see, like all discount, cashback, and loyalty cards, the savings you can make all depend on how you use them.

Remember, too, that the average savings number will be masking many far higher savings.

Here are our top 12 tips to make the most out of your Blue Light Card.

1. Know Which Retailers Participate

Not all retailers participate in the Blue Light discounting scheme. However, there are lists of retailers and other organisations which accept the card on the Blue Light website.

You’ll see these when you log into your membership account. Make sure you familiarise yourself with this list.

2. Always Carry Your Card With You

Always keep your Blue Light Card in your wallet or purse. You never know when you might come across a participating retailer.

3. Always Ask In-Store

One thing you’ll find is that, even if you know the list of participating retailers by heart (and if you do, you’re a memory genius – there are so many of them!), not all are on the website lists.

Partly, this is because more organisations are being added every week and it’s a challenge to update the website.

Therefore, a golden rule is to always ask in-store. You may also find that some smaller or local shops may offer a discount even if they aren’t officially affiliated to Blue Light.

4. Check for Online Discounts

Some retailers may offer online discounts to cardholders. Before making an online purchase, check if there’s a Blue Light Card discount code available.

5. Review Offers Every Week

The deals available aren’t static. They are constantly changing and updating. New offers – maybe for trial periods or as specials – can be added any day.

Stay on top of the latest deals and partnership changes by making it a habit to check the Blue Light website and social media accounts at least once a week, and more often of possible.

6. Don’t Allow Offers to Expire on You

Some of the discounts may be time-limited, or carry certain conditions. Always read the terms and conditions and use your discounts before they expire.

7. Combine Discounts

Some retailers let you double up on discounts, by using their own loyalty schemes and sales prices as well as the Blue Light Card.

That outfit you desire in the sale. It’s a bargain with 30% off. Add in your 20% Blue Light discount, and you really are ‘quids in’. (Remember Tip 3, to always ask in-store.)

8. Do Your Maths When Buying Big Ticket Items

The prices on popular holiday booking sites may not be as good as you can get. Before pressing the ‘Book now’ button, do your maths.

For example, if holiday company A is offering family accommodation for £1,000, and holiday company B is charging £1,100 for the same accommodation, check for a Blue Light Discount on both.

It could be that company B could work out cheaper by applying a Blue Light discount.

This logic goes for other items as well – TVs, mobile phones, laptops, days out, gifts, and even buying a new car.

9. Enter the Competitions & Ballots

You’ve got to be in it to win it. If you don’t buy a ticket, you won’t win a prize.

The online competitions and ticket-giveaway ballots are easy to enter. It only takes a few seconds on Blue Light’s social media accounts. Keep an eye on them, and get entering!

10. Sign Up for Notifications

Receiving automated notifications into your inbox or through the app will help you to stay one step ahead in the discount game and avoid missing a great offer – though you should still surf the Blue Light website and social media as we recommend in Tip 5 above.

11. Plan Special Occasion Shopping

With so many seasonal offers available, start planning your Christmas shopping early. Review the Blue Light offers, and make the most of them.

The same applies when buying any gifts – birthdays, anniversaries, weddings, and other special occasions. Always scour the Blue Light deals before purchasing presents.

12. Use It Wisely

Remember, just because there’s a discount doesn’t mean it’s always the best price or that you necessarily need the item. It’s still important to shop sensibly and compare prices.

How Do You Apply for the Blue Light Card?

It’s easy to apply for the Blue Light Card. You can become a member by applying online. You’ll need to provide these few pieces of information:

• Name
• Email address
• Employer’s information
• Job role
• County

You’ll need to create a password for your account, too.

Once this information is accepted, you’ll be asked for your address to receive a physical Blue Light Card. Shortly after, you’ll be advised that your eligibility has been confirmed and you’ll receive you card in the post.

(Don’t forget, you can also have a virtual card on your mobile phone.)

The Bottom Line

The Blue Light Card is an amazing innovation, and the perfect way to say thank you to people who put their lives on the line to make the UK a safer and greater place to live. If you are an employee or ex-employee of any of the public services that make you eligible for a Blue Light Card, you should apply for membership.

The savings, special offers, and freebies available through Blue Light are not only tremendous, but can also make a big difference to your finances. The trick to make this happen is to follow our tips to maximise your Blue Light savings and use your card to its full advantage.

You do so much for the nation, you deserve a little more in return. The Blue Light Card is one way to reap the rewards of your dedicated service.

This article and its facts and figures were checked and updated on 1st May 2024. Please always check the official websites from our direct links on this article, for the most up-to-date information. We monitor all information closely.

If you’re planning to travel overseas, often the last thing you’ll think about is the best way to spend money abroad. This could be a big mistake, especially if you are taking a credit card with you.

Sure, credit cards offer extra protection, and the interest-free period could help you budget for your foreign spending.

However, many credit cards levy hefty charges when you use them abroad. These can add up rapidly behind your spending. You might not even realise just how much until you receive a nasty surprise when you open your next credit card statement.

The solution? Use a travel credit card.

In this article, I compare the best travel credit cards. I also discuss the advantages and disadvantages of using them, and provide a list of the worst debit cards to use while you’re on holiday or business overseas.

What Is a Travel Credit Card?

Most credit and debit cards can be used abroad. The bad news is that many of these charge high fees each time you do.

Even if you get an almost perfect exchange rate, you could be charged a transaction fee of around 2% to 3%. You think you’ve spent £100, but it’s cost you £103.

That’s not the only charge, either. Many cards also charge a flat fee just for using your card abroad. Depending upon the card you use, this could be between 50p and £1.50. At only €5, a breakfast with coffee is exceptional value. Then the card provider takes £1.50. Ouch!

You don’t have to pay these fees. Not if you use a travel credit card designed especially for use abroad. Not only will you get a near-perfect exchange rate, but you’ll avoid all the charges, too. This could easily save you £100 or more while you’re on holiday.

A bonus with these cards is that you’ll benefit from extra protection under the Consumer Credit Act. For any purchase between £100 and £30,000, you’ll be able to seek compensation direct from the credit card provider if the product is faulty or the retailer goes bankrupt.

Spending on the Wrong Credit Card – The Real Cost

Whether you are using your card to make a purchase or to withdraw cash, you’re going to be shocked how the charges rack up.

Foreign exchange fees and transaction charges could add around £3 to a £30 lunch bill.

If you prefer to use cash, an ATM withdrawal of £200 could cost you around £6 on the foreign exchange fee and another £5 by way of a cash withdrawal fee. That’s without the interest you’ll be charged from the second you make a cash withdrawal.

Either way, you’re looking at charges of between around 5% to 10% on your spending. If you spend £1,000 while away, you will have paid the bank as much as £100.

No wonder the fat cats are on such high bonuses ─ it’s coming out of your pocket.

Sidestep the Fees with Travel Credit Cards

Cards that are designed for spending abroad don’t charge many of these fees. With most, you’ll avoid the foreign transaction charges. Many don’t charge for cash withdrawals (though you may be charged by the ATM provider).

However, most credit cards will charge interest on cash withdrawals, just as they do when you use them in the UK. My advice here: never use a credit card to make a cash withdrawal while you’re abroad or in the UK.

One thing to be aware of is that, just like standard credit cards, some travel credit cards charge a monthly fee. On the other hand, many of the cards that charge a fee also offer rewards. These may include air miles, travel insurance, and cashback.

(Note that cashback isn’t given on balance transfers, money transfers, cash withdrawals, buying currency or travellers cheques, or any cash-like transactions you make such as money orders or wire transfers.)

Best Travel Credit Cards 2023

Which travel credit card is best for you depends on how you plan to use it. Five cards stand out.

Barclaycard Rewards Credit Card

Best All-Rounder

I like this card for several reasons:

• No charge for withdrawing cash
• No foreign transaction fees
• 0.25% cashback on all purchases
• No interest on cash withdrawals providing you pay off the balance in full each month

If you’re an Apple user, you’ll also get five months of Apple TV+, Apple Music, Apple Fitness+, Apple News+ and Apple Arcade.

Halifax Clarity Credit Card

Best for New Accounts

The Halifax Clarity Card runs a close second to Barclays Rewards. Like Barclaycard Rewards, it does not charge foreign transaction fees. Also like Barclaycard rewards, you won’t get charged to make a cash withdrawal – though you will be charged interest on cash withdrawals from day one.

Virgin Money Credit Cards

Best for Points

Virgin Money offers a range of credit cards, including the Virgin Atlantic Reward Credit Card and the Virgin Atlantic Reward+ Credit Card.

You won’t pay foreign transaction fees of cash withdrawal fees for either. With the Reward card, you receive 0.75 Virgin Points for every £1 you spend. This card also rewards 1.5 points for every £1 you spend with Virgin Holidays or Virgin Atlantic, though Reward+ cardholders get double this.

Virgin points can be redeemed when buying Virgin flights or holidays, and spent at several high- street brands. If you want the Regards + card, there is an annual fee of £160.

118 118 Money Credit card

Best for Bad Credit

If you currently have a low credit score, the 118 118 Money Credit Card could be the best option for you.

While the interest rate charged is highest among the five that I’ve put under the microscope, there are no foreign transaction fees, no charges for cash withdrawals, and, like the Barclaycard Rewards Credit Card, you won’t be charged interest on any transaction provided you pay off your full balance each month.

The downsides include a £12 late payment fee and 5% fee on cash withdrawals, as well as a much lower credit balance than for other cards.

Never Use These Cards Abroad

Here are six more reasons you might consider taking a travel credit card rather than a debit card to spend money abroad. Six debit cards that could cost you as much as even the most expensive non-travel credit cards.

Though some of the following charges may not apply if you are travelling in the European Economic Area (EEA), you should avoid using any of the following cards while travelling:

Bank of Scotland, Lloyds, Halifax

With a minimum 2.95% foreign exchange fee between them and a 50p spending charge, you’ll quickly rack up unexpected costs. As if these aren’t enough, these banks will also levy a £1.50 charge on ATM cash withdrawals.

TSB

Charges are even higher if you use a TSB debit card abroad. While the foreign exchange fee is the same at 2.99%, the spending charge is £1, and the ATM charge is between £2 and £4.50.

Intelligent Finance

Lower foreign exchange fees and ATM charges (at 2.25% and £1.50 respectively) than Bank of Scotland, Lloyds, Halifax, and Intelligent Finance, but the £1.50 spending fee is going to hurt you.

Clydesdale/Yorkshire Bank

No foreign exchange fees! Unfortunately, it’s going to cost 2.25% every time you spend (with a minimum of £1.50), and 2.25% to withdraw cash from an ATM (with a minimum of £1.50).

What does all this mean in simple terms? At the worst, you could spend £5 for a beer in the United States, and it will cost you more than £6.50 when fees and charges are added.

Travel Credit Cards – The Good, Bad & Ugly

Even though you could reduce the charges you incur on your holiday spending, it’s not all a bed of roses. As with almost all things financial, there are always two sides to the coin. Here’s my rundown of the good, the bad, and the ugly of travel credit cards.

The Good

The overriding reason to use a travel credit card abroad is the lower fees and charges. They are cheaper to use than standard credit cards, and this will help your money go further. The further your money goes, the better your holiday will be and the lower your interest and credit card bill when you return home.

On top of these savings, some travel credit cards give rewards like cashback or points to be redeemed as discounts from high street shops. Every little helps.

With competitive exchange rates, no or low foreign exchange fees, free cash withdrawals, and purchase protection under the Consumer Credit Act, it can make sense to use a travel credit card while abroad.

The Bad

Moving on from what we really like about travel credit cards to what I’d call the bugbears. The bad stuff includes that not everyone will be accepted for a credit card account.

Eligibility depends upon your credit rating. The lower yours is, the harder you’ll find it to be accepted. Cards that are specifically for people with poor credit scores tend to offer lower credit balances and charge higher interest rates.

The best travel credit cards often charge a fee, either annually or monthly. You’ll need to work out if the amount of savings you’ll make will be worth this charge.

The Ugly

 In fairness, the ugly side of travel credit cards is the same as it is for standard credit cards…

Firstly, if you fail to pay off your balance in full each month, you will be charged interest. This can be high. Far higher than, say, the interest on a personal loan.

Also, while some travel credit cards may allow you to withdraw cash with charges and interest free, most will levy interest from the day you withdraw your money from an ATM. This could get very expensive if you prefer to spend in cash while away.

Tips for Using a Travel Credit Card

You’ll save the most money when you use a travel credit card wisely. Here are my tips to do so:

Always Pay in the Local Currency

When you use a card abroad, you will probably be asked if you want to be charged in the local currency or in pounds. Always choose local currency. If you pay in pounds, you’ll receive a bad exchange rate. By choosing local currency, you’ll pay at your bank’s exchange rate.

Limit Your Cash Withdrawals

Even if your card doesn’t charge you to withdraw cash, the ATM might. Even if it doesn’t, most credit cards will charge interest on your cash withdrawals from the moment you take your money out of the hole in the wall.

Therefore, spending on your card is almost always better than withdrawing cash to use. This is also true for debit cards, where you’ll often still pay a transaction fee, even though there will be no interest to pay (unless you overdraw, of course).

Clear Your Balance Every Month

To take full advantage of the benefits of spending on a credit card – no fees and worthwhile rewards – you must clear your balance to zero every month. This will also help to bump up your credit score, which is key to getting the best credit offers and lowest interest rates.

7 Steps to Getting the Best Travel Credit Card for You

Rushing to apply for a travel credit card is not the best idea. You should give some thought to which you need. Indeed, even if you need one at all. Ticking all the boxes in the following process should make sure that you get the best card for you:

Step #1: Check Your Credit Score

This is easy to do using a service like Clearscore.com. This will give you a good insight into anything that might affect your application negatively, and the opportunity to correct them.

Step #2: Know Your Existing Cards

How do your existing cards measure up? Will they charge foreign exchange or cash withdrawal fees? Will they charge transaction fees every time you use your card abroad? How much will they allow you to withdraw/spend before charging you? If you make a cash withdrawal, will you be charged interest immediately?

Understanding the charging structure of your existing cards will help you compare them with travel credit cards later in the process.

Step #3: Understand How You Will Be Spending Money Abroad

Now, think about how you are likely to spend money while away. I tend to use a card for most of my spending, though I also like to have a little bit of cash in my pocket. Only carrying a small amount of money in my pocket is safer, too. Plus, I really don’t want to be hunting for an ATM when I could be enjoying myself.

Step #4: Ensure You Can Repay the Balance Every Month

The best way to spend on holiday is to only spend what you can afford. Sometimes that isn’t possible, though. If you won’t be able to repay your card balance in full each month, then you should look for a card that allows you to spread the cost interest free over a few months.

Step #5: Know what Type of Card You Need

Now you know how you are likely to spend and how much it will cost to do so on your current cards, you can make a comparison with the cards that best match your spending style.

Step #6: Consider Monthly & Annual Fees

The penultimate step is to consider if your preferred travel credit card levies a monthly or annual fee. If it does, you’ll need to consider if this fee eliminates the benefit of owning the card.

Step #7: Apply

The final step is to apply for your credit card well ahead of time. The last card I applied for was delivered within 48 hours, but I’ve also waited for more than a week.

What If a Travel Credit Card Isn’t Right for You? The Best Alternatives

Credit cards aren’t for everyone; for example, if you already have enough debt (your credit score will help you decide this), or think that a credit card will encourage you to overspend, or you can’t afford to pay off the balance each month.

Credit cards have their place in your financial armoury, but financial discipline is key to using them effectively. Without this, your balance is likely to increase, and this will cost you dearly in interest charges.

This is nothing to be ashamed of. In fact, recognising that a travel credit card may not be right for you is a great sign that you are developing financial astuteness. There are always alternatives.

Finance companies like Revolut and Monzo allow you the freedom to use your card like a debit card, but with some of the features of travel credit cards thrown in. Caxton is another card provider worth considering.

Revolut allows you to hold foreign currency, exchanging it from pounds to local currency at the ‘real’ exchange rate (the interbank rate). You can exchange up to £1,000 in any month without incurring foreign exchange fees.

Over this, there is a charge of 0.5%. You can also withdraw up to £200 in cash in any single month with no charges, and at the interbank rate. However, withdraw more than this and the charge is 2%.

Monzo is more like a traditional bank account, though operated online. You can only hold a Sterling balance, but when you pay for goods and services while abroad you’ll receive the Mastercard rate.

This is not quite as good as the interbank rate, but not far off. In the EEA, cash withdrawals are free. Elsewhere you can withdraw up to £200 in any month before incurring a 3% charge.

Caxton FX has a prepaid card that covers 15 different currencies. You won’t be charged foreign transaction fees or ATM fees.

Other card providers, like Chase Bank, Starling Bank, and Virgin Money offer various cards with low or no foreign transaction fees and no ATM withdrawal fees. Each has its own terms and conditions, which you’ll need to read before you decide which is best for you.

Curve – A Possible All-In-One Solution

Curve is a financial solution that is gaining in popularity. The idea is simple: link all your existing credit and debit cards under one umbrella card, and use only this card while abroad.

When you spend money abroad, you present your Curve card and choose which card or account you wish to use. You can even redirect a payment up to 120 days after you’ve made it! With Curve, you will benefit from:

• Fee-free spending – up to £1,000 every 30 days (2% thereafter)
• Free ATM withdrawals of up to £200 per month (2% thereafter)
• Currency exchange in the app at Interbank rates

For even more benefits (including worldwide travel insurance), you could sign up to one of its premium accounts, though they cost up to £14.99 per month.

Got a Complaint About Your Travel Credit Card?

Sometimes banks and credit card companies get things wrong. This doesn’t mean you have to suck it up and take it on the chin.

If you think you’ve been charged the wrong amount, or interest has been levied when it shouldn’t have been, there are things you can do. The first course of action is to contact the bank or card company.

I did this recently. To cut a long story short, I had taken my eye off the ball and neglected to examine my credit card statements each month. When I did look at one properly, I realised I had been charged interest over several months that I thought shouldn’t have been charged.

So I complained. I stated my case, the representative agreed with me, and refunded all the interest I had been charged – almost £200. Then she put my balance onto a zero-interest rate for 12 months!

If you don’t get any joy from the provider, you can take your case to the financial ombudsman. An easy way to do this is to use a service like Resolver. It’s free and makes it simple to manage your complaint.

Wrapping Up

That’s it for now! There’s only one thing left for me to say:

Use the seven-step process to get the best card for you, and be careful with how you use it abroad. If you plan to use it while on holiday, I hope you have an incredible time and make many memories. If it’s a business trip, I wish you plenty of success.