CREDIT CARDS
New Credit Cards from MBNA
MBNA has launched two new credit cards enabling customers to obtain cash-back and earn money as they spend.
The two new reward cards, the MBNA American Express Credit Card, and the MBNA Visa Credit Card, offer incentives to spend.
The American Express Credit Card offers unlimited cash back at 1.5 percent on purchases at supermarkets and petrol stations. A rate of 0.75 percent on cash back is offered on all other purchases made using this card.
The Visa Credit Card offers a similar deal but with unlimited cash back at 1.25 percent on supermarket and fuel purchases, and 0.5 percent on other purchases. Both representative rates are 18.9 percent APR variable.
“With fuel and shopping costs continuing to rise, we want to give our UK customers greater value when using their credit cards for every day spending,” said Will Curley, MBNA product executive.
“We are constantly searching for ways to bring greater choice and value to the UK credit card market; these two new products reinforce that commitment."
Benefits of Reward Cards
If you are happy to use your credit card for everyday spending then a reward card could see you reap some good benefits.
When you spend money on a reward credit card you earn points and receive discount on purchases, cutting the price you pay for essential items such as food.
The type of discounts you receive will depend on the card, but typically the points you earn when spending can be exchanged for vouchers to put towards your shopping.
To take advantage of these rewards the card user is required to spend a substantial amount. So those who are at risk of not paying their credit card bill in full each month could incur hefty interest rates on their debt, which would reduce the benefits of the discount.
The cards are available from March 16th 2011.
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