How to bag £150 worth of Nectar points when you take out an American Express credit card
The Nectar loyalty scheme has more than 500 brand partners, meaning shoppers can use their freebie points at retailers including Sainsbury's and Pizza Express
SHOPPERS can bag £150 worth of Nectar points if they take advantage of a new American Express offer.
The credit card giant is the chance to collect 30,000 Nectar points, worth £150, when they spend £2,000 within the first three months of owning the card.
New customers typically get 20,000 free points when they take out a card, and the offer of an additional 10,000 points will run until June 30 only - so anyone who's interested in the deal will need to apply soon.
It's worth noting that you'll only get the points if you spend £2,000 during the first three months - which is fine if you're going to spend the money anyway on a large purchase such as a holiday, but if you can't afford to spend so much, the card isn't worth getting.
The Nectar loyalty scheme, which is used by around 20million people, has more than 500 brand partners, meaning shoppers can use their freebie points to get money off at retailers including Sainsbury's, Pizza Express, Caffé Nero and Eurostar.
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As well as getting the initial bunch of points, borrowers will earn points on their spending with the card, with four points earned for every £1 spent at Nectar partners, and two points earned on every £1 spent elsewhere.
Five thousand points are worth £25, 10,000 points are worth £50, and 20,000 points are worth £100.
But there are catches to be aware of. While the card's annual fee is scrapped in the first year, it will be £25 each year after that.
You'll have to have a good credit score to be accepted on the credit card, so any history of bad debt is likely to mean you'll be rejected - and a note of this will made on your credit file.
The 28.2 per cent APR is higher than many other reward credit cards on the market, including the Virgin Atlantic white credit card (which gives you 10,000 free air miles and has an APR of 22.9 per cent), the Tesco Clubcard (which gives you Clubcard points on spending and has an APR of 5.9 per cent) and the Barclaycard Freedom rewards card (which gives you freedom points on spending and has an APR of 21.9 per cent).
Andrew Hagger, a personal finance expert at Moneycomms.co.uk, said that these introductory offers may look tempting, "but before you rush in to signing up for another piece of plastic - think whether it's right for you."
Tips and tricks to help boost your credit score
- USE some credit on a regular basis, but never take on more than you can afford
- Get on the electoral role, which makes it easier for lenders to identify who you are and trace you
- Stay within the agreed credit limits and always make your repayments on time, paying more than the minimum off your credit cards each month if you can
- Space out your credit applications and avoid making several applications close together as this can signal financial stress. Being refused credit is not shown but making multiple applications smacks of desperation
- Don't use credit cards to withdraw cash
He added: "The card company will want you to spend on the card and they are hoping that you don't pay the balance off in full so they can charge you interest.
"As tempting as it may seem right now - if you become saddled with debt further down the line that freebie may seem a distant memory when you start getting hit with monthly interest charges."
Recent figures from the Bank of England reveal that credit card borrowing has risen at its fastest rate in more than a decade, with spending in the year to February up 9.3 per cent - the fastest growth rate since February 2006.
Some £600million was piled on credit cards last month, with households owing £67.3billion, The Bank of England said.
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