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Guide to Cashback & Rewards Transfer Cards

A guide to

By Nevena Mulyachka and Mark Todd
Nevena is moneyhelpline’s marketing manager, specialising in money products such as insurance, credit cards, loans and savings. Mark is one of the founders of energyhelpline and moneyhelpline. He is regularly on BBC1 and Radio 5 Live commenting on switching and saving.

Last updated 1/12/16

What is a 0% purchases credit card?

A 0% purchases credit card charges no interest for spending for a promotional period. The better your credit score, the longer the interest free period you get will be.

This period can be well over 2 years, up to 30 months! It therefore enables you to make purchases you would otherwise have to get a loan out for, but at zero interest.

So, it is ideal for spending or for when you’re planning to make a big credit card purchase now and want to pay off the cost over a long period interest-free.


You're looking to book next summer's holiday costing your family around £2,000. You could dip into your savings but if you don't have them at the moment or you'd rather keep them intact, you risk getting a much more expensive deal if you leave it too late. So what are the options now?

  • You go to your bank to ask for a loan - £2,000 loan to be repaid over 2 years from high street banks gives you rates ranging 21.9% - 27.5% APR, so you will be charged over £400-500 in interest. There are, of course, cheaper personal loans available with rates from 6.9%.
  • Whereas, if you pay for your holiday on a 0% purchases credit card, you are basically getting an interest-free loan for up to 30 months. All you need to do to never get charged interest is pay at least the monthly minimum amount and try to repay before the 0% promotional period ends.


Card Image one

How to get the most out of purchases credit cards?

Always make sure to pay the monthly minimum or you might lose your 0% offer. The best thing to do is set up a direct debit for the minimum payment to go out of your bank account on a monthly basis.

Keep in mind the interest-free offer usually comes for just an introductory period, which then moves onto standard credit card interest terms (15-20%), so try to clear the debt during this period.

If you don’t manage to do this, then flip your debt onto a 0% balance transfer credit card which will give you another up to 41 months interest-free and thus you will avoid paying high interest rates.


CPost Office Matched card

Top offer #1

Sainsbury's Bank Purchase Credit Card

- 0% on purchases for 28mths

- 0% on balance transfers for 18mths (2.89% fee)

- Representative 18.9% APR

- Earn Nectar points as you spend

More info >



CPost Office Matched card

Top offer #2

Post Office Matched Card

- 0% on purchases for 27mths

- 0% on balance transfers for 16mths (2.98% fee)

- Representative 18.9% APR

- No cash fee when you purchase Post Office Travel Money

More info >



CPost Office Matched card

Top offer #3

Sainsbury's Bank Dual Offer Credit Card

- 0% on purchases for 27mths

- 0% on balance transfers for 27mths (3% fee)

- Representative 18.9% APR

- Earn Nectar points as you spend

More info >



CPost Office Matched card

Top offer #4

AA Dual Credit Card

- 0% on purchases for 26mths

- 0% on balance transfers for 26mths (2.98% fee)

- Representative 18.9% APR

More info >


What perks do purchases credit cards have?

Purchases credit cards can also give you rewards sometimes. These could range from supermarket loyalty points to cashback to airmiles, or other offers.

Look out for these when you take out a card but don't let them overly influence you as the length of the 0% period is generally the key factor.


Card Image two

Loyalty points credit cards:

Tesco, Sainsbury's and Marks & Spencer all have their own credit cards which give you bonus points for their respective loyalty programmes when you spend on them.

The top offers from them are:

  • Sainsbury's Nectar Purchase Credit Card with 0% on purchases for 28mths - 2 Nectar points per £1 spent on Sainsbury's shopping and fuel, 1 point for every £5 spent elsewhere
  • M&S Credit Card with 25mths 0% purchases - 500 bonus points when you get the new card, then 1 point for every £1 spent in M&S and 1 point for every £5 spent elsewhere
  • Tesco Bank Purchase Card with 1000 Clubcard Points offering 0% on purchases for 17mths - 1000 bonus points when you make a purchase or balance transfer within 2 months of account opening plus 1 Clubcard point for every £4 spent in Tesco and for every £8 spent elsewhere

Make sure you know how much your points are worth. Sometimes obscure points systems can disguise poor payouts. Compare how much points are worth and how well the deal fits with your own personal habits.

For example, a Sainsbury's Nectar point is worth 0.5p compared to a Tesco Clubcard point worth up to 4p (8 times more) but it may be that Sainsbury’s is far more local to you than Tesco, so it would make more sense to go for the Sainsbury's option.


Cashback credit cards:

Getting paid for spending on a credit card probably sounds too good to be true but this is essentially what happens when you spend on a cashback credit card. The top picks on the market could give you 3-5% cashback on some of your spending.

The top offers:


Purchases protection on credit cards:

One of the additional benefits of credit cards is the protection you get when making a purchase on them.

Credit cards are regulated by the Consumer Credit Act 1974 which makes the credit card provider jointly liable with the merchant you buy the goods or services from if they cost between £100 and £30,000.

So if you buy something of this value on your credit card and it turns out to be faulty, substandard, you never receive it, or the merchant goes bust, you can claim your money back from the credit card company. This basically ensures that you don’t owe money for something you were not able to use.

These guides are for informational purposes only and do not constitute advice. For best personal advice contact a financial adviser.



Credit Cards


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