New credit card from Lloyds: 1% cashback and 0% fees abroad.

New credit card from Lloyds Bank

According to The Sun: The renowned bank presented a credit card that offers a one-time bonus in the form of cashback.

Lloyds bank presented a new credit card with cashbackGetty - Contributor

The Lloyds Ultra credit card allows customers to earn 1% cashback on unlimited purchases for the first 12 months, after which the cashback reduces to 0.25%.

Cashback is credited to the card account in January as a one-time payment. So, if you apply for the card today, the cashback for the next three months will be paid in January 2026.

You will also be able to earn cashback during holidays, as there are no fees for currency conversion.

If you spend £100 a month on this card throughout the year, you will receive £12 cashback in January.

According to the Bank of England, households on average spend £3,173 ahead of holiday sales, which means up to £31.73 cashback for Christmas.

However, as with any credit card, it is important not to miss monthly payments to avoid interest and improve your credit rating.

The new Lloyds card competes with similar offerings in the market.

The interest rate for the Lloyds Ultra credit card is 12.9%, and according to experts, this is 'competitive'.

“Lloyds Ultra is a flexible, straightforward, and easy-to-use credit card – no hassle, just benefits,” said Lloyds card program director Rich Napier.

“This card combines all the advantages we can offer into one convenient and flexible solution,” he added.

He also emphasized that users earn cashback on all purchases, from a new washing machine to vacations, which helps turn spending into valuable rewards.

Financial expert Rachel Springall from Moneyfactscompare.co.uk believes the card is a 'great choice for customers looking for a convenient credit card for everyday purchases and travel'.

“The Lloyds Bank Ultra credit card is attractive to spenders, as it does not limit the 1% cashback, so spenders can get a good payout after a year of use,” she emphasized.

But she also advised considering switching cards after the first year if the cashback of 0.25% becomes uncompetitive.

Other cashback cards

Many other banks also offer credit cards with cashback on spending.

• The Santander Edge credit card offers 1% cashback on purchases in the UK and abroad but with a maximum payout of £10 per month, and the usage fee is £4.
• The American Express Cashback Everyday credit card offers 5% cashback for the first five months, however with a limit of £125, and then 0.5% on spending up to £10,000 a year.
• The Barclaycard Rewards Visa provides 0.25% cashback with no fees.

What to know about credit cards

Improper use of a credit card can lead to serious financial problems and damage your credit rating.

If payments are not adhered to or debt is not cleared, it can negatively affect your credit history, making it harder to get a credit card, loan, or mortgage in the future.

It is important to avoid the temptation to spend more than you can afford to repay.

You should try to pay off the full balance as soon as possible.

With a low credit rating, do not expect to receive a card or 0% deal you were counting on.

Card providers must offer the advertised rate only to 51% of applicants, so you may face higher interest than planned.

With a poor credit history, obtaining favorable rates will be more challenging.

If you are looking for a new credit card, do not try to apply for many cards at the same time.

After the 0% period ends, lenders can charge interest exceeding 40%, so if you do not pay off the debt in full, try to transfer it to another 0% deal.

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Against the backdrop of new credit card offerings, the innovation from Lloyds Bank is part of a trend where banks are trying to attract customers by offering favorable cashback terms. It is important to pay attention to the card's terms of use, as the effectiveness of lending depends not only on the benefits but also on the proper management of expenses and payments.