Offering a steady flow of cashback on everything you buy, cost-effective overseas spending, and no annual fee, the Rewards credit card from Barclaycard is a strong contender in a competitive market.
Pros
- One simple cashback rate
- No fees for spending overseas, including cash withdrawals
- No annual fee
- Free Apple subscriptions for up to 5 months
Cons
- Higher cashback rates available
- Relatively high APR
- Minimum income of £20,000
- No 0% period on purchases or balance transfers
- Balance transfers incur a fee
![Barclaycard Rewards Credit Card](https://thumbor.forbes.com/thumbor/fit-in/x/https://www.forbes.com/uk/advisor/wp-content/uploads/2021/09/new-barclaycard-rewards2.png)
Table of Contents
Key features
- 0.25% cashback on everyday purchases
- No fees for purchases made abroad – provided you opt to pay in the local currency
- No fees for cash withdrawals at home or overseas (so long as paid off in full)
- No introductory offers on either purchases or balance transfers
- Discounts on live events
Rewards
As the name implies, this is predominantly a rewards card, which pays 0.25% cashback when you use it to shop. This cash will be credited annually to your statement, or on your request.
Note, however, that while you will earn cashback on new purchases, you won’t earn anything on transactions such as balance transfers, money transfers, cash withdrawals or buying currency.
Further perks are on offer via Barclaycard Entertainment, including access to savings and discounts on some live events, while new cardholders will enjoy a welcome bonus of 5 months’ free Apple subscriptions.
Find more details at Barclaycard’s website.
Charges
There is no annual fee to pay for this straightforward cashback offering. But as there is no interest-free window on purchases, new purchases made on the card will be charged at a representative rate of 25.9% APR (variable).
That said, with this card, you get 56 days’ interest-free credit on spending. This means that, as long as you clear your balance in full – and on time – each month, you won’t have to pay a penny in interest.
There is also no 0% window on balance transfers, so any existing balances you shift will also be charged at a representative rate of 25.9% APR (variable). The balance transfer fee you are charged (which you will find out once you are accepted) will depend on your credit rating.
If you are late making your monthly payment, you will face a £12 fee. These fees can be avoided by setting up a direct debit which will ensure paying on time.
Unusually, the card doesn’t charge transaction fees for making purchases – or even withdrawing cash – when overseas. You won’t pay interest on overseas cash withdrawals either, so long as you clear your balance in full.
Protection
As with any credit card, with Barclaycard’s Rewards Credit Card, you get protection under Section 75 of the Consumer Credit Act.
This safety net applies to purchases costing more than £100 and up to £30,000. Even if you only pay for part of the purchase – such as the deposit – with your plastic, you still get protection for the whole cost.
Will I be eligible?
As it’s such an attractive offering, you can expect Barclaycard’s Rewards Credit Card to be reserved for applicants with a very healthy credit score.
You will need to be aged at least 21 and have at least four years’ experience of managing credit. You will also need a record of making payments on time.
It’s worth making use of our free Eligibility Checker before applying formally for this card, to find out your likelihood of being accepted. This will give you a quick answer, and won’t affect your credit rating.
What more should I know?
It’s important to use the Barclaycard Rewards Credit Card with care, as if you fail to pay off your balance in full, the interest you are charged is likely to outweigh any rewards earned.
You also need to be disciplined about making the minimum monthly repayment (the higher of £5 or 3.25% of your balance) on your plastic or you risk having any perks withdrawn.
Finally, while commonly-charged foreign transaction fees abroad don’t apply, this is only the case if you opt to pay in the local currency. If you pay in sterling, fees may still apply.
Is it the right card for me?
If you are looking for a simple card for everyday spending, and religiously clear your balance in full each month, this could be just the right plastic for you.
You don’t need to think about converting reward points – you earn cashback effortlessly on all your purchases.
At the same time, if you plan on using your card abroad, you won’t incur fees on non-sterling transactions. So it’s great for frequent travellers too.
What are my alternatives?
If your priority is breathing space to pay off what you plan to buy with your card, you may be better off with a deal offering interest-free window on purchases.
Certain cards may also offer more generous levels of cashback but as this may mean they come with more complicated Ts and Cs – such as an annual fee, or fees for overseas use – you’ll need to weigh up what’s best for you.
Equally, if you are looking to shift existing card debt, you may be better off considering a card with an interest-free balance transfer offering instead.