Don’t write off credit card rewards just yet

New European rules mean that credit card companies now receive a much smaller kick back from retailers, forcing some card companies scrap or dilute their card reward programmes.

However it’s not the end of the road for these schemes just yet as two new promotions have just been launched.

Sainsbury’s Bank which currently offers one of the more lucrative reward schemes via its range of Nectar credit cards is doubling the reward rate for new customers to 4 Nectar points per £1 spent on Sainsbury’s shopping or fuel in the first three months.

A brand new rewards card has also just been unveiled by AA credit cards, targeted mainly at motorists.

The AA Fuel Save credit card comes with a fee of £3.50 per month so you need to use it frequently to ensure you benefit from the rewards.

You can earn 4% cashback on fuel purchases and 0.5% on other purchases if you spend more than £500 in total (not just on fuel) during the month.

If you spend £200 per month on fuel and £400 elsewhere – you would earn £8 for the fuel £2 for spend elsewhere – so once the £3.50 fee is accounted for you’ll be £6.50 better off each month.

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