Latest news with #Platinum
The Sun
4 hours ago
- Business
- The Sun
The FIVE reasons why I never use my debit card – I think they're pointless, you should ditch them too
OUR wallets are crammed with plastic - but there's one card I never use and is completely pointless. For many, a debit card is a go-to for everyday shopping. 1 But I think everyone should ditch it - and there's a much better option that will MAKE you money and offer more protection on your purchases. When it comes to being a savvy spender, debit cards are rubbish. Instead, I use a credit card and here I explain the five reasons why I think everyone else should make a switch too. Make use of a secret weapon in your wallet If you've ever bought a big-ticket item – perhaps a new sofa, a swanky TV, or even booked a holiday – and then had it go wrong? It's a nightmare scenario we all dread. And if you paid with your debit card, you might be in for a nasty surprise. While debit cards offer " chargeback", where your bank tries to recover your money from the retailer, it's not guaranteed. It's a voluntary agreement, not a legal right, so your bank can try - but there's no promise you'll get your money back. Now compare that to credit cards. If you spend over £100 and under £30,000, you're automatically covered by Section 75 of the Consumer Credit Act. Four methods you can use to clear debt This is consumer protection gold. It means your credit card company is equally liable with the retailer if something goes wrong. So, if your new sofa doesn't arrive, is faulty, or your holiday company goes bust, paying with a credit card gives you far better protection. You're missing out on loyalty points This one really grinds my gears. In a world where every click and every purchase is tracked, why aren't you getting something back for your loyalty? Every time you tap your debit card, you're throwing away free money - or in my case, free holidays. Every time I spend a quid on my British Airways Premium Plus American Express credit card, I'm racking up 1.5 Avios airmiles. If I'm booking a flight on that jumps to a whopping three Avios per £1 spent. Those points can go towards free flights, holiday bookings, cabin upgrades, and more – just for spending money I was going to spend anyway. American Express has credit cards for Nectar members too, giving shoppers two points for every £1 spent. If you want flexibility with how you use your points, American Express Reward, Gold, and Platinum cards let you earn one "membership" point for every £1 spent. This means you could exchange some of these points for airmiles with airlines like British Airways, Iberia, Qatar, Emirates, and Virgin Atlantic. Then redeem more for discounts on hotel bookings with Hilton, Marriott, and Radisson. Plus, Amex allows you to convert points to help lower your credit card bill, with 1,000 points worth £4.50. My debit card gives me nothing - no perks, no points, no rewards so why spend money without getting something back? Free cash when you spend Most high street banks and their debit cards are notoriously tight-fisted when it comes to cashback. Some bank accounts with monthly fees or challenger banks like Chase do offer up to 1% cashback, but if you're like the majority and have a standard fee-free high street current account, your debit card won't give you any instant savings. But with my credit card, it's a completely different story. My American Express app is packed with offers. I just tap to add them to my card, and I get instant savings on things like my weekly shop or streaming services. Right now, I'm getting 15% back on my Disney+ subscription every month – free money for something I'd be paying for anyway, automatically applied. Plus, if you're an Amazon Prime fan like me, my fee-free Amazon Barclaycard gives me 1% cashback on all my online orders. The best part? Cashback doubles during events like Prime Day, letting me earn even more while I shop. If cashback is your only concern, the American Express Cashback Everyday Credit Card is a great option for those expecting a high-spend period. It offers an impressive 5% cashback on purchases for the first five months (up to £125). After this introductory period, you can earn up to 1% cashback, but you'll need to spend over £10,000 annually to qualify for ongoing rewards. For those who might not meet the £10,000 annual spending threshold, the American Express Cashback Credit Card is another strong choice. It also offers 5% cashback for the first three months (up to £125), followed by 0.75% cashback on spending up to £10,000 per year and 1.25% above that. What is cashback? CASHBACK is a type of reward offered by banks, credit card providers, and retailers where customers receive a percentage of their spending back as cash. Essentially, it's a way to earn money while making purchases. For example, if your card offers 1% cashback and you spend £100, you'll earn £1 back. Cashback can be credited to your account, deducted from your balance, or saved up for future use, depending on the provider's terms. It's often offered on everyday purchases, such as groceries, fuel, or online shopping, and may be part of a promotional deal or an ongoing benefit of your account. However, remember to check the terms and conditions, as some transactions may not qualify for cashback rewards. By using cashback offers wisely, you can usually make your money go further on purchases you'd already be making. It does nothing for your credit score Building a good credit score is crucial. It's not just for big loans like mortgages - it affects everything from mobile phone contracts to car finance. Using a debit card without an overdraft doesn't help your credit score because you're just spending your own money. But, using a credit card responsibly – that is, making sure you pay it off in full and on time every single month – is a fantastic way to prove you're a trustworthy borrower. It demonstrates financial discipline and builds a positive credit history. However, I must give you a big fat warning here... If you're not disciplined with money, credit cards can wreak havoc on your score and future borrowing capabilities. Miss payments, and you'll trash your ability to get a loan or mortgage for years. So, only use them if you can be trusted to clear your balance. How can I boost my credit score? A ROBUST credit score is a golden ticket to better deals. Andrew Hagger, founder of Moneycomms, said the most important move is to register to vote. This is because lenders need to check your identity and address to confirm you're not a fraudster. For Experian, being on the electoral register can yield you 50 points. Also, don't make too many credit applications as this can be a sign of financial distress. And if you already have a credit card or loan, never miss a payment. Kara Gammell, financial expert at MoneySupermarket, said: "A missed payment can negatively affect your rating." Renters who want to boost their credit score can also report their rent payments to three of the major credit reference agencies to prove they can pay their bills on time. CreditLadder introduced rent reporting to the UK for all tenants in 2017. Two out of five households rent, and CreditLadder can report those rent payments to all the main credit reference agencies, which can help you improve your credit history and score. They come with expensive borrowing costs An overdraft lets you spend or withdraw money with your debit card even if your balance is below £0. But overdrafts are one of the most expensive ways to borrow, with most banks charging a steep 39.9% APR. TotallyMoney found that one in five people go overdrawn by an average of £697 a day, quickly racking up interest. Credit cards, however, usually have much lower rates - between 18% and 24.9% APR, according to MoneySuperMarket. If you were to borrow £1,000 for a year on a credit card at 18% APR it would cost you around £180 in interest. Whereas, on a 39.9% APR overdraft, the same £1,000 would cost nearly £400. When it comes to borrowing small amounts, credit cards are the clear winner. Plus, you can even snag introductory 0% credit card deals, giving you a period to borrow completely interest-free. Just remember that these offers are usually tailored for managing existing debt or making planned, affordable purchases. They are not for spontaneous spending sprees unless you're completely debt-free otherwise and can pay it back within the interest-free period.
The Sun
2 days ago
- Business
- The Sun
Lloyds Bank to axe bank account key perk for thousands of customers – check if you'll have to pay more
LLOYDS is scrapping a popular bank account benefit, leaving thousands of customers facing higher costs. The high street bank will axe a £5 a month discount offered to thousands of Club Lloyds Platinum customers. 1 The Club Lloyds Platinum account is a premium bank account offering benefits like travel insurance, mobile phone insurance, breakdown cover, and access to lifestyle perks and savings accounts. It costs £22.50 a month, plus a £5 Club Lloyds fee, which is refunded if you pay more than £2,000 into the account each month. However, thousands of account holders also get a £5 monthly discount on the £22.50 fee. To qualify, you must either deposit £4,300 or more into the account each month (£5,500 for joint accounts) or keep savings of £75,000 or more in eligible accounts during the month. This discount helps reduce the cost for those who meet the conditions, saving over £60 a year if eligible for the discount throughout the year. However, Lloyds has confirmed that this discount will be phased out, with customers receiving their final £5 refund on August 4 – provided they meet the eligibility criteria in July 2025. After that, all account holders will need to pay the full £22.50 monthly fee, which costs £270 a year. A spokesperson for Lloyds Bank said: "Our packaged bank accounts continue to offer great value for money, as they come with a host of perks including fee free spending worldwide, insurance, lifestyle benefits, cashback and much more. "We've also recently launched our Lloyds Premier account, which brings together the best in financial perks and premium lifestyle services we have to offer. "Customers will have the £15 a month fee refunded when they pay in £5,000 each month, or have £100,000 of savings or qualifying investments with Lloyds." Switch bank accounts for free perks When considering the value of packaged bank accounts, it's important to review the level of cover provided. Think about whether you will actually use all the benefits included. If you won't, your current provider might not be the best choice for you. Fortunately, there are other packaged bank accounts available that cost less than the Club Lloyds Platinum account. This includes two cheaper options offered by Lloyds Bank itself. Club Lloyds Accounts Club Lloyds (£5 a month) Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets Exclusive savings and mortgage rates Earn interest on current account balance Get up to 15% cashback on debit card purchases in selected retailers Club Lloyds Silver (£11.50 a month + £5) Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets Exclusive savings and mortgage rates Earn interest on current account balance Get up to 15% cashback on debit card purchases in selected retailers European and UK family travel insurance AA breakdown cover Mobile phone insurance Fee-free spending and cash withdrawals abroad Club Lloyds Platinum (£22.50 a month + £5) Free lifestyle benefits including either 12 months of Disney+ or six cinema tickets Exclusive savings and mortgage rates Earn interest on current account balance Get up to 15% cashback on debit card purchases in selected retailers Worldwide family travel insurance AA breakdown cover Mobile phone insurance Alternatively, Nationwide 's FlexPlus packaged bank account costs £18 a month and offers a host of additional services and perks. These benefits include worldwide travel insurance, mobile phone insurance, breakdown cover, and preferential rates on loans and overdrafts. The account does not require a minimum pay-in, and customers get worldwide travel insurance for family trips of up to 31 days. Mobile phone insurance is also provided for all members in the same household, and it covers for loss, theft, damage and faults. Additionally, account holders can use their debit card abroad without incurring non-sterling transaction fees. FlexPlus customers also get vehicle breakdown cover in the UK and the rest of Europe even if somebody else is driving. NatWest's Reward Silver account costs £10 a month and offers European travel insurance for trips of up to 22 days. Customers also get free mobile phone insurance and can use their debit card abroad without incurring extra charges. Those looking for worldwide travel insurance can apply for a Reward Platinum account which costs £22 a month. This account also includes UK breakdown cover. Virgin Money's Club M packaged bank account is one of the cheapest on the market, costing £12.50 a month or £150 a year. It comes with free gadget insurance, worldwide family travel insurance and UK and European breakdown cover. The gadget cover protects both mobile phones and other tech, such as tablets and laptops. Customers do not need to make a minimum monthly payment to qualify for the account. According to the bank, equivalent policies would cost upwards of £500 a year, so customers save £350 with this account's perks. Meanwhile, Halifax's Ultimate Reward package bank account costs £19 a month or £228 a year. Customers do not need to make a minimum monthly payment to qualify for the account. The product comes with free gadget insurance, worldwide family travel insurance, UK breakdown cover and home emergency cover. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up - there's a full list on CASS' website. Under the switching service, swapping banks should take seven working days. You don't have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts. And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee. What else is happening at Lloyds Bank? Customers of Lloyds Bank, Halifax and Bank of Scotland will soon lose the ability to deposit their cheques at any of the 11,500 Post Office branches nationwide. From December 31 this year, Lloyds Banking Group will withdraw this service for all customers. In June, millions of Lloyds, Halifax and Bank of Scotland customers saw their overdraft costs fall. Existing customers currently paying 39.9% or 49.9% on their overdrafts have had their rates reduced to 29.9%. If your interest rate dropped from 49.9% to 29.9%, the cost of borrowing £1,000 over 12 months would fall by £299. Meanwhile, if your interest rate falls from 39.9% to 29.9%, the cost of borrowing the same amount over 12 months would fall by £100. Meanwhile, the high street bank stopped paying interest on money held in their student bank accounts on June 2. Lloyds Bank also hiked the the monthly Club Lloyds charge in June. On June 2, the £3 monthly fee rose to £5 per month, adding up to £24 more per year for those who do not meet the £2,000 monthly deposit requirement. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up - there's a full list on CASS' website. Under the switching service, swapping banks should take seven working days. You don't have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts. And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
Business Insider
7 days ago
- Business
- Business Insider
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18. "Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment. Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000. "Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule." Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards. "We're trying to make the lounges bigger," Squeri said on the call."I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." Hementioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds. "I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get." The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed.
Business Insider
7 days ago
- Business
- Business Insider
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
American Express execs were asked about Platinum card fees and crowded lounges on an earnings call. The current annual fee is $695, which is still less than that of the Chase Sapphire Reserve card. Executives also said they expect "more innovation" in airport lounges and acknowledged crowding issues. Few details have come out about the coming updated American Express Platinum Card — including how much it will cost, as the world of premium credit cards gets ever glitzier. The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18. "Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment. Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000. "Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule." Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards. "We're trying to make the lounges bigger," Squeri said on the call. "I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." He mentioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds. "I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get." The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed. Squeri emphasized the company's focus on premium users in the press release, saying demand is strong and teasing the coming Platinum "refresh." The question of exactly how much that "refresh" will cost, though, remains to be answered.
CNBC
7 days ago
- Business
- CNBC
Rich American Express customers continue to spend freely, with one exception
American Express has long benefited from a focus on wealthier customers who appreciate the credit card company's travel and dining perks. That has helped insulate the company from concerns over a spending slowdown. In the second quarter, total spending on Amex cards jumped 7%, matching the first quarter and higher than the 6% increase a year ago. But travel spending in the quarter was weaker than transactions for goods and services, and that's specifically because airline spending has stalled out, coming in flat from a year ago, American Express said Friday. Economy class domestic airfare is the source of the weakness, Amex CFO Christophe Le Caillec told CNBC. That could be of concern given the company's airline partnerships and network of airport lounges, Truist analyst Brian Foran noted. Airfare prices have also declined, which means consumers are spending less when they buy tickets. Airfare fell 3.5% in June from a year earlier while inflation overall rose, according to the Bureau of Labor Statistics. Despite beating expectations for second-quarter profit and revenue, and reaffirming its 2025 guidance for those metrics, shares of Amex fell 2.7% in midday trading. Year to date, the company's shares have climbed less than 4%, trailing most other financials like JPMorgan Chase and Citigroup. That's mostly over investor concerns about the spending on rewards programs that Amex has to do as it launches a refreshed Platinum card, Foran said. The company faces increased competition in the premium card space from JPMorgan, Capital One and Citigroup, he said. "The bear narrative is they have to push harder and harder to get growth, spending more to get more," Foran said.
