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Aqua pulls 0.5% cashback credit card

Paloma Kubiak
Written By:
Paloma Kubiak

Aqua has temporarily withdrawn applications for its Reward Credit card which offers 0.5% cashback on spending and no international charges.

The Aqua Reward Credit card was launched in 2014, primarily aimed at those who needed to rebuild their credit scores. It offered a credit limit of between £250 and £1,200 and had a 34.9% APR.

But it also offered a generous 0.5% cashback on spending (up to £100 a year) with no international charges on overseas spends and no monthly fees.

The card has been temporarily withdrawn from the market as of last week, but Newday Group, which issues the Aqua credit card, confirmed there are no changes for existing customers.

It added that the Aqua Classic and Aqua Advance credit cards remain on sale.

A Newday spokesperson, said: “As part of a regular review process undertaken for all our portfolio products, the Aqua Reward Card has been temporarily removed from the market. While Aqua Reward will be unavailable to new customers during this period, existing card-holders will not be affected and will be able to use their cards as normal.”

Cashback and rewards being scaled back

The move comes just weeks after Tandem Bank pulled its popular free cashback credit card off the market for new applicants.

Existing customers were told they would need to pay £5.99 a month to continue to receive 0.5% cashback on spends, zero fees for international spending and access to its 1.5% savings account.

Financial information business Defaqto said the number of cashback cards available has steadily reduced.

In 2015, there were 14 providers offering 20 cashback cards, rising to 15 providers and 35 products in 2018. However, as of this year, the number of providers has fallen back to 10 and the products available stand at 22.

The number of cards with no international charges hasn’t really changed. In January 2018, there were 15 providers offering 23 cards. As of today, there are 13 providers offering 24 products.

Katie Brain, consumer banking expert at Defaqto, said: “The Aqua Reward credit card was one of a kind, as it was a credit repair card with cashback. At the moment no other ‘subprime’ cards offer a cashback.

“This card offered 0.5% cashback on all purchases, subject to a maximum £100 per annum, and no international charges. The interest rates were high but the Representative APR of 34.9% is average for a credit repair credit card.”

Alternative cashback and no international fee credit cards

Brain said credit card companies are still offering borrowers some great deals to tempt them to take out a card so it is worth shopping around to get the right deal for your needs.

She added: “It is easy to rack up debt with a credit card and the interest payments can quickly mount up and add to the debt. If you are taking out a new credit card, make sure you choose one that is appropriate for your spending habits and watch out for when any introductory deal ends and make a note of the date. Check whether you are eligible for the card before applying as some are only available to those with an excellent credit rating. Never miss a repayment and try to clear the balance or at least pay more than the minimum payment every month.”

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