Lloyds Bank has launched a new credit card paying users 1% cashback on their spending, the Lloyds Ultra Credit Card. The card is also free to use abroad and charges one of the lowest rates of interest on the market.
Rich Napier, Credit Card Director at Lloyds, said: "Lloyds Ultra is the best of everything we have to offer in credit cards, all in one handy, flexible card."
We take a look at how the Lloyds Ultra compares to its major UK competitors and whether or not it is something worth adding to your wallet.
Key facts about the Lloyds Ultra Credit Card
- Best for: Cashback on spending and using abroad
- Introductory offers: 1% cashback on spending for the first 12 months, then 0.25%
- Representative APR: 12.90% variable
- Fees: No account fees
- Perks: Cashback in the UK and abroad
Is the Lloyds Ultra Credit Card any good?
If you are in the market for a new credit card to use abroad, you can't beat the Lloyds Ultra Credit Card. It is free to use outside of the UK and pays 1% cashback on your spending for the first 12 months, after which the cashback rate falls to 0.25%. Even if you are going away in the next few days, you could use the Lloyds Ultra as the virtual card will be available to use straight away, so no need to wait for the physical card in the post.
The Lloyds Ultra Credit Card could also be a great option if you want a cashback credit card to use in the UK. While its initial 1% cashback rate trails behind the new member offer from the American Express Platinum Cashback Everyday credit card of 5% cashback for 3 months, the Amex offer is only available to customers who have not had an Amex card in the last two years. Among non-Amex options, it is now the cashback credit card paying the highest rate of cashback without a monthly earning limit or an account fee, unlike rival cards from Santander. However, remember that the Lloyds Ultra Credit Card's 1% cashback rate only lasts for a year before it drops to 0.25%, which is much less competitive but still in line with the cashback rate of the Barclaycard Rewards credit card, our previous top pick for the best travel credit card.
If you are considering the Lloyds Ultra Credit Card, you may also find that there are rewards credit cards with bonuses that are worth more to you than 1% cashback on your spending.
Keep in mind that while the Lloyds Ultra does rank well among low interest credit cards, if you are looking to spread the cost of your spending by not paying your balance off in full every month, you are better off with a long-term 0% purchase credit card.
Pros of the Lloyds Ultra Credit Card
- No foreign exchange or transaction fees
- 1% cashback for 12 months on spending with no limit
- Relatively low ongoing interest rate (representative 12.9% APR variable)
Cons of the Lloyds Ultra Credit Card
- Cashback is only paid out once a year, in January
- 1% cashback is lower than what you can get with the very top cashback credit cards
- 1% cashback rate only applies to the first year before it drops to 0.25%
How to manage your payments on the Lloyds Ultra Credit Card
You can register online to manage your account on your computer or phone. There is also a Lloyds Bank app that you can use to check your balance, monitor your transactions and arrange payments.
The best way to make sure you clear your balance at the end of each billing period is to set up a direct debit for the full amount, but you should pay at least the minimum payment. If you pay less than the minimum, you will not get any cashback for that statement period.
How to apply for the Lloyds Ultra Credit Card
Lloyds Bank's One Check eligibility checker will tell you which cards you are eligible for from the Lloyds Bank range, including the Lloyds Ultra Credit Card, as well as what your credit limit would be.
Checking your eligibility is a great way to make sure you fulfil the basic criteria for the card prior to applying and check if there are any other cards that are actually a better fit for you. Alternatively, you can jump straight to the application on the Lloyds Bank website.
Find out 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*.
Alternatives to the Lloyds Ultra Credit Card
- Barclaycard Rewards credit card
- American Express Platinum Cashback Everyday credit card
- Lloyds Bank Platinum 0% Purchase and Balance Transfer credit card
If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product.
MTTM AI (beta) 
