We review the ASDA Money Select credit card, a credit builder credit card in partnership with Jaja finance. It is aimed at shoppers who may have experienced difficulty in being accepted for other types of credit in the past. It can also help boost your credit rating if used responsibly. In this article, we take a look at the ASDA Money Select credit card, how it compares to other types of credit builder credit cards and who it may be good for.
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How does the the ASDA Money Select credit card work?
Credit builder credit cards like the ASDA Money Select credit card are aimed at applicants who are not eligible for traditional mainstream credit cards. They are a good option for those that have a poor credit history and can be a sensible choice for those with little or no credit history. Lenders will often deem those with a poor credit rating as higher risk and so credit builder cards often come with higher interest rates and a lower credit limit to account for this. If used responsibly, credit builder credit cards can help to build and repair a limited or poor credit file with the ultimate aim of improving the number of providers that are willing to lend to you in the future.
ASDA Money sign up bonus
New ASDA Money customers can get a £20 bonus in ASDA Pounds if they apply by 5 December 2023. They will need to spend £50 on the card and set up a direct debit to pay the bill each month – for the minimum payment, full balance or a fixed amount – within 60 days of opening the account. Any cash advances or balance transfers will not count towards the £50 spend. The £20 bonus will be paid within 90 days of the account opening.
Key facts about the ASDA Money Select credit card
- Best for: Those who frequently shop at ASDA and who wish to improve their credit score
- Representative APR: 34.9% variable
- Credit limits: £500-£5,000 (Depending on individual circumstances)
- Fees: No fee
- Perks: New customers a bonus of £20 when they sign up. The card also offers 1% cashback in 'ASDA pounds' when you buy ASDA groceries and fuel. Earn 0.3% cashback on non ASDA spending. ASDA pounds can be redeemed via the ASDA rewards app
- Annual fee: £0
How does the ASDA Money Select credit card compare?
Below we compare the ASDA Money Select credit card with some of the best credit builder credit cards on the market.
|Asda Money Select credit card||Tesco Foundation credit card||Capital One Classic credit card||Barclaycard Forward credit card|
|Credit Limit||£500 - £5,000||£250 - £1,500||£200 - £1,500||£50 - £1,200|
|Perks||1% cashback on all ASDA grocery and fuel spending. 0.3% cashback on non ASDA spending||5 Tesco Clubcard points for every £4 spent in Tesco. 1 Clubcard point for every £8 spent elsewhere||Possibility of two increases in the credit limit within the first year of having the account||Interest rate reduced if the card is used responsibly (3% after the first year and a further 2% after the second year)|
Which credit card is best for you?
You can use Money to the Masses partner Creditec* to quickly build a list of the credit cards that match up with your needs. By simply adding in a few basic details, you will get a tailored collection of the best credit cards for you. You can use your Creditec results to check how likely you are to be accepted for a certain card, which cards available to you offer the best rewards or find out what option will leave you with the lowest fees to pay. Creditec is able to check your eligibility without running a full credit check, which means your credit score will not be affected. Click this link to start your comparison*.
Which is the best credit builder credit card?
Below, we provide a round-up of the best credit builder credit cards on the market.
Best credit builder credit card that offers cashback
The ASDA Money Select credit card comes with a representative APR of 34.90%, although applicants could be offered an interest rate of up to 43.40%. The credit card offers 1% cashback on all ASDA grocery and fuel spending and 0.3% on all other spending. Cashback can be redeemed via the ASDA Rewards app.
Best credit builder credit card with low APR
The Tesco Foundation credit card offers a low APR of 29.90% and is good for those who are looking to boost their credit score when purchasing groceries. It rewards its customers with 5 Tesco Clubcard points for every £4 spent in Tesco and 1 Clubcard point with every £8 spent elsewhere.
Best credit builder credit card with 0% purchase deal
The Capital One Classic credit card comes with a representative APR of 34.94%. Those who demonstrate good card management may be offered an optional credit limit increase.
Best credit builder credit card with interest rate reduction
The Barclaycard Forward credit card comes with a representative APR of 33.90%. It offers a 3% reduction interest rate reduction if you make all payments on time for the first year and a further 2% reduction after the second year.
Should you get the ASDA Money Select credit card?
The ASDA Money Select credit card is a credit builder credit card primarily aimed at those who are not eligible for mainstream credit cards. If you have a good credit rating then you may want to consider applying for a mainstream credit card as there are cards that offer a lower representative APR plus you may be able to get better perks including better cashback rewards and a longer interest-free period for new purchases. If you are specifically drawn to this card for its ASDA rewards then it may be worth checking to see if you are eligible for the ASDA Money cashback credit card as it offers the same rewards but with a much lower representative APR of 25.9%.
If a credit builder credit card is your best option, then the ASDA Money Select credit card is a good choice for those that regularly shop at ASDA. Even those that only occasionally shop at ASDA would benefit, so long as they maintain good card management and pay the balance in full each month. The ASDA Money Select card comes with a relatively high APR, so if you find yourself unable to pay the balance in full each month, it would be better to go with a card that offers a lower representative APR, such as the Tesco Foundation card (29.90%).
Other ways to improve your credit score
A credit builder credit card is just one way that you can help improve or repair your credit rating. There are a number of tools and services that are designed to specifically help build credit and we provide links to some of our articles below.
- Experian Boost - Connect your current account to receive a boost to your Experian credit score
- LOQBOX - Build your credit score through savings
- Monese credit builder - Improve your credit score through regular savings
- How to improve your credit score quickly
- What is a good credit score - and how to improve yours
- Compare the best credit cards to build credit and improve bad credit
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