Asda Money offers 10% cashback on its credit cards - how does it compare?

Asda Money has boosted the introductory rate of cashback available on its credit cards to 10% - meaning you could earn up to £100 in Asda Pounds. 

The new deal is only available to new customers who sign up for the Asda Money Credit Card or the Asda Money Select Credit Card, and you’ll only get the boosted rate of cashback for 90 days. After this, it will drop back to 1%.  

Here, Which? takes a closer look at the new offer, compares it to other cashback credit cards, and answers the key question: is it worth taking out a new card just for the introductory bonus?

What do Asda Money credit cards offer?

The Asda Money Credit Card offers cashback in Asda Pounds when you use it to buy groceries, fuel and other Asda services including travel insurance.

The rate of cashback is usually 1%, but has temporarily been increased to 10%. You also get 0.3% on purchases made elsewhere. 

The card has a representative APR of 25.9% (variable) with no annual fee. 

The Asda Money Select Credit Card is a credit builder card that offers the same benefits as the mainstream card but with a much higher representative APR of 34.9% (variable). 

This card is more suited to shoppers with a poor credit score, who might find it more difficult to be accepted for other credit cards.

Both cards are powered by Jaja Finance.

• Find out more: best credit builder cards

How to earn £100 with an Asda Money credit card

New customers will benefit from the increased rate of cashback for the first 90 days of the account being open. 

The introductory offer ends on 11 March 2024, so you’ll need to apply for the card before this date.

To get the full £100, you would need to spend £1,000 on your shopping in total across the 90 days. This equates to around £330 a month, or £83 a week.

• Find out more: best credit card deals

How to use Asda Rewards

Shoppers will be rewarded through Asda’s loyalty programme, Asda Rewards.

To get the cashback you've earned, you’ll need to download the free Asda Rewards app and link it to your credit card. 

You can then spend your Asda Pounds by moving them to your Cashpot, where you can convert them into an Asda voucher. Vouchers can be scanned at the checkout on your mobile.

The app also has other ways you can earn rewards. For example, shoppers can earn Asda Pounds by scanning items, buying star products and completing ‘missions’ – such as buying a certain number of items from one department.

• Find out more: loyalty cards compared

Is Asda Money a good credit card provider?

Which? surveyed thousands of credit card customers in October 2023 to find out how satisfied they were with their providers.

We also asked them to rate the companies across a range of customer satisfaction categories, from the application process through to the service they receive when using their card.

Asda Money got a customer score of 62% – coming joint 30th out of 31 providers. It scored three stars across the board, apart from on its transparency of charges, where it scored two stars.

• Find out more: best credit card providers 2024

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How do other introductory offers compare?

Asda is not the only cashback credit card provider looking to entice new customers this January. Here are the other deals we spotted.

American Express Platinum Cashback Credit Card - 5%

Both the American Express Platinum Cashback Credit Card and the free version - the American Express Platinum Everyday Cashback Credit Card - offer the highest rate of cashback on the market.

Customers also rate the brand highly. American Express has been named a Which? Recommended Provider, coming 2nd out of 31 providers in our latest survey.

With the free card, you earn 5% cashback for the first three months (capped at £100), and 0.5% on everything after. If you spend more than £10,000 within a year, your cashback rate goes up to 1%. This card has a representative APR of 31% (variable). 

The premium version of the card with an annual fee of £25, also offers 5% cashback for the first three months, capped at £125. After this, your cashback rate drops to 0.75%, and rises to 1.25% if you spend more than £10,00 within a year. This card has a represented APR of 36.7% (variable). 

• Find out more: American Express Credit Card review

American Express Nectar Credit Card - 20,000 points

This reward card is one of the best on the market and has an excellent introductory offer for new customers. 

At the moment American Express Nectar is offering 20,000 Nectar points if you spend £2,000 on the card in the first three months.

With this card, you earn three Nectar points for every £1 spent with Nectar partners, including Sainsbury’s, Habitat and Argos, and two Nectar points for every £1 spent elsewhere. Nectar points can also be converted into Avios points, which can be spent on your next holiday. 

The card has a representative APR of 31% and has no fee for the first year. An annual fee of £30 will apply in the following years. 

M&S Shopping Plus - £25 gift card 

The M&S Shopping Plus allows you to earn one point per £1 spent at Marks and Spencer and one point per £5 spent elsewhere. These points can be exchanged for vouchers to spend at the retailer. 

New customers can get a £25 e-gift card to spend with the retailer if they spend £250 across five or more qualifying purchases within the first 90 days. You’ll get the gift card via email within 45 days. 

As well as earning points, this card offers 18 months interest-free on purchases, and 0% on balance transfers for 15 months with a 2.99% balance transfer fee. The card has no annual fee and a representative APR of 23.9% (variable). 

M&S achieved an excellent provider customer score of 78% in our survey, coming in third out of 31 providers. But it didn't meet all our criteria to become a Which? Recommended Provider.

• Find out more: M&S Bank credit card review

Should you take out a new card for the introductory offer?

Although introductory offers can be enticing, it’s important to consider all your needs when looking for a new credit card.

No introductory deal lasts forever, so you’ll need to weigh up if the standard perks are good enough to commit to the credit card long term. 

For example, if in the first year of owning the Asda Money Credit Card, you spent £100 a week, in a year you would earn £142. 

This is because for the first 10 weeks, you’d earn your bonus of £100, and for the remaining 42 weeks of the year, you’d earn just £1 per £100 spend, equating to £42.  

But in the second year of owning the card, you’d only earn £52 in Asda Pounds with a cashback rate of 1%. However, if you regularly shop at Asda, that’s still a decent rate of cashback on your everyday spending. 

If you prefer alternating where you do your weekly shop, you may be better off with a different cashback or reward credit card. 

You can see how they stack up in our guide to the best cashback credit cards.