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The Lloyds Bank Cashback Credit Card is designed for individuals looking to earn cashback on their everyday spending while enjoying various other benefits. Offering 0.25% cashback on purchases, this card provides a straightforward way to reward cardholders for regular purchases without the hassle of a monthly account fee.

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However, like any credit card, it comes with terms and conditions that you should be aware of to maximize its benefits.

Lloyds Bank Cashback Credit Card Benefits

Cashback Rewards

The main appeal of the Lloyds Bank Cashback Credit Card is its cashback rewards. You earn 0.25% cashback on eligible card purchases. Whether you’re buying groceries, filling up on fuel, or making larger, one-off purchases, you’ll accrue cashback that will be credited directly to your credit card account. The cashback will be credited once a year, every January, helping to reduce your balance.

This cashback applies not only to purchases made by the primary cardholder but also to those made by your additional cardholder. However, it’s essential to note that the cashback is only earned on eligible card purchases and won’t apply to balance transfers, cash withdrawals, or other types of transactions.

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Additionally, cashback does not count as a payment towards your credit card balance, so you’ll still need to make at least the minimum payment each month to remain eligible for future cashback earnings.

No Monthly Account Fee

A standout feature of this card is that it has no monthly account fee, meaning you won’t need to pay additional costs to maintain the card. This makes it easier to maximise the value of your cashback earnings without worrying about fees eating into your rewards.

Personalised Credit Limits and Interest Rates

Your credit limit and interest rate will be personalised based on your financial circumstances and credit score. Interest rates on purchases are variable and are linked to the Bank of England Base Rate, meaning if the base rate changes, your interest rate will adjust accordingly.

The representative APR for this card is 22.9% variable, but your actual rate may differ depending on your credit profile.

While having a personalised rate allows for flexibility, it’s worth noting that if your financial situation changes or the base rate increases, you could end up paying more in interest.

If you’re carrying a balance month-to-month, the cost of the interest could outweigh the benefits of the cashback rewards, making this card less suitable for those who cannot pay off their balance regularly.

Key Features and Protections

  • Fraud Protection: Lloyds Bank places a strong emphasis on fraud protection. If any unauthorized transactions appear on your account, you won’t be held responsible, provided you notify the bank promptly. Lloyds Bank will take action to address fraudulent activity and ensure your card is secure.
  • Online and Mobile Account Management: Managing your Lloyds Bank Cashback Credit Card is straightforward. You can check your balance, review recent transactions, make payments, and request transfers online or via the Lloyds Bank mobile app. This ease of access allows you to keep track of your spending and ensure timely payments.
  • Additionally, you can opt for paper-free statements, which will be delivered electronically, allowing you to view your credit card statements conveniently through the app or online banking platform.
  • Contactless Payments: The Lloyds Bank Cashback Credit Card is equipped with contactless payment technology, allowing for fast, secure payments at any merchant displaying the contactless symbol. For even more convenience, you can add your card to your mobile phone’s digital wallet, enabling quick payments via Apple Pay, Google Pay, or other similar services.

Prerequisites for Applying

Before applying for the Lloyds Bank Cashback Credit Card, ensure you meet the following criteria:

  1. Age and Residency: You must be at least 18 years old and a UK resident.
  2. Regular Income: You must have a regular source of income.
  3. Credit History: You should have a clean credit history, meaning no bankruptcies, County Court judgments (CCJs), or Individual Voluntary Arrangements (IVAs). Additionally, if you’ve been declined for a Lloyds Bank credit card within the last 30 days, you will not be eligible to reapply.
  4. Employment Status: Applicants must not be unemployed or a student.

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Lloyds Bank Cashback Credit Card Fees and Interest Rates

Although there is no annual or monthly fee, it’s important to understand the other fees associated with the card. Some of the key charges include:

  • Standard Interest Rate on Purchases: 22.94% p.a., representative APR of 22.9% variable.
  • Cash Advance Fee: For cash transactions, you will be charged 5% of the amount.
  • Foreign Transaction fee: 2.95%
  • Late Payment Fee: If you miss a payment, you’ll be charged a £12 late payment fee. It’s crucial to avoid this, as it could impact your credit score and your ability to earn cashback.

Step-by-Step to Apply for the Lloyds Bank Cashback Credit Card

Applying for the Lloyds Bank Cashback Credit Card is a simple, online process. Here’s a step-by-step guide to applying:

  1. Check your eligibility: Before proceeding, it’s advisable to check whether you’re eligible for the card. You can do this by visiting the Lloyds Bank website and using their online eligibility checker. This quick process doesn’t impact your credit score and gives you an idea of your likelihood of being accepted.
  2. Complete the Application Form: Once you’ve checked your eligibility, proceed with the application form by providing the necessary information, including details about your income, employment, and financial history.
  3. Submit Supporting Documents: You may need to provide additional documentation, such as proof of income or details of other credit cards if you’re planning to transfer a balance.
  4. Wait for Approval: After submitting your application, Lloyds Bank will assess your financial situation. If approved, you’ll receive your card, and you can begin using it for purchases.

Lloyds Bank Cashback Credit Card Pros and Cons

Pros

  • Cashback on Everyday Purchases: Earning cashback on daily expenses is a significant benefit, especially for those who frequently use their credit card.
  • No Account Fee: The absence of a monthly account fee helps maximise the cashback benefits without additional costs.
  • Personalised Credit Limits and Rates: Tailored credit limits and interest rates make the card adaptable to your financial situation.
  • Fraud Protection: You won’t be held responsible for unauthorised transactions if you report them promptly.
  • Easy Management: Online and mobile tools make managing your card convenient and straightforward.

Cons

  • Variable Interest Rate: As your interest rate is tied to the Bank of England’s base rate, fluctuations could result in higher interest payments.
  • Late Payments Impact Cashback: If you don’t make your minimum monthly payments on time, you’ll lose the ability to earn cashback, which could negate the card’s main appeal.
  • No Rewards Beyond Cashback: For those seeking additional perks like travel rewards or insurance, this card may not be the best option.

Conclusion

The Lloyds Bank Cashback Credit Card is an excellent choice for individuals looking for a simple, easy-to-manage cashback card with no monthly fees.

While its cashback rate of 0.25% is modest compared to some other cards on the market, the absence of a monthly fee and the convenience of online management make it a compelling option.

However, if you plan to carry a balance or need a card with more premium benefits, you may want to explore other options.

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