The Complete Guide to Using the Asda Money Select Credit Card Effectively

This guide explores how to get the most value, strategies to improve your credit score, insider hacks, frequently asked questions, and viable alternatives.

For UK consumers navigating the world of credit cards, the Asda Money Select Credit Card occupies a particular niche: a credit builder card that rewards loyalty to the Asda brand. Unlike premium cashback products such as the American Express Platinum Cashback Everyday Card, the Select card is designed primarily for people with less-than-perfect credit who still want tangible rewards from everyday shopping.

Step-by-Step Guide to Using the Card

1. Apply Strategically

Eligibility checks on the Asda Money website use a soft search, meaning they do not impact your credit score. It’s recommended to check eligibility before applying to avoid unnecessary hard searches that could lower your credit profile.

2. Start with Modest Spending

New cardholders should begin by charging small, manageable amounts—such as weekly groceries (£50–£70). This ensures the utilisation ratio stays below 30% of the credit limit, a critical factor in credit scoring models.

3. Pay in Full Every Month

With a representative APR of 34.9% variable, carrying a balance is costly. A £600 balance could generate nearly £17 in monthly interest charges. Always set up a direct debit for the full statement balance to avoid interest.

4. Leverage the Introductory 5% Cashback

For the first 90 days, purchases at Asda yield 5% cashback (Asda Pounds) up to £50. Families spending £400 per month on groceries could maximise this in just over one month.

5. Redeem Seamlessly

Unlike other rewards programmes that require vouchers, Asda Pounds are directly visible in your Asda Rewards app and can be applied instantly at checkout, effectively acting as “Asda money”.

Optimisation Hacks Few People Mention

Split Payments for Maximum Rewards

When making larger purchases at Asda (e.g., £200 in household items), splitting payments across multiple transactions ensures that rewards are tracked accurately in the app.

Use for Fuel at Asda Stations

Petrol spending often goes unrewarded with competitor credit cards. Since the Select card includes fuel, this becomes a hidden cashback generator for commuters.

Pair with a 0% Purchase Card

Some customers strategically hold a second card—like the Barclaycard Platinum Purchase Card (up to 24 months 0% interest)—for larger, spread-out payments. The Asda Select card can then be reserved purely for cashback and credit-building, while the 0% card handles bigger expenses without incurring interest.

Maintain a Long-Term Open Account

Even after upgrading to a prime credit card, keeping the Select account open with occasional use benefits your average account age, boosting long-term credit score strength.

Stack with Asda Rewards Promotions

Asda often runs seasonal promotions (e.g., extra 10% Asda Pounds on George clothing). Paying with the Select card during these windows effectively doubles your rewards.

Maximising Value

The Asda Money Select card is not designed to compete with premium cashback cards in raw percentages. Its true value lies in three areas:

• Credit Rehabilitation: For those rebuilding credit after defaults or CCJs, six months of consistent full payments can materially improve score eligibility for mainstream products.
• Everyday Integration: Because groceries and fuel are unavoidable expenses, the cashback feels more like a discount on necessities rather than a forced reward.
• Cost-Free Credit History Extension: With no annual fee, the card can remain open indefinitely, supporting credit utilisation ratios without ongoing expense.

Alternatives Worth Considering

While the Asda Money Select has its niche, other UK credit builder cards may be better suited depending on priorities.

Feature / Card	Asda Money Select	Tesco Foundation Credit Card	Aqua Classic
APR (variable)	34.9%	29.9%	34.9%
Rewards	1% Asda / 0.2% others	Tesco Clubcard points	None
Annual Fee	£0	£0	£0
Credit Limit	£500–£5,000	£250–£1,500	£250–£1,200
Key Strength	High limit potential + cashback	Tesco ecosystem integration	Broad acceptance for subprime

• Tesco Foundation Credit Card: Best if you shop at Tesco frequently and want Clubcard integration.
• Aqua Classic: Accessible for very poor credit files, but lacks rewards.
• Capital One Classic: Widely available, but credit limits are lower and no cashback.
  

Frequently Asked Questions (Non-Obvious)

1. Can I use the Asda Money Select abroad?

Yes, but foreign transaction fees of around 2.99% apply, making it unsuitable for travel.

2. Will the cashback affect my credit utilisation?

No, cashback is stored as Asda Pounds and doesn’t reduce the outstanding balance. Always pay in full.

3. Does paying off the card mid-month help?

Yes. Making two payments per cycle (mid-month and at statement date) keeps utilisation low, which is beneficial for your score.

4. Can this card help me get a mortgage?

Indirectly, yes. Lenders value consistent repayment history. Six to twelve months of full payments improve mortgage eligibility.

Small Criticisms & Limitations

• High APR: Disciplined repayment is essential; otherwise, interest wipes out rewards.
• Limited Reward Ecosystem: Asda Pounds are useful only within Asda; no flexibility like Tesco Clubcard or Nectar.
• Not Suitable for Travel: With foreign transaction fees, it cannot double as a holiday card.

Conclusion

The Asda Money Select Credit Card is not a one-size-fits-all product. Its strength lies in helping UK consumers build or rebuild their credit while receiving a modest cashback return on daily essentials. For Asda loyalists, this creates a practical incentive to stay within the brand ecosystem.