The Lloyds Ultra Credit Card presents a compelling choice for UK consumers aiming to maximise their everyday spending rewards. Featuring a standard representative APR of 12.9%, this card offers 1% cashback for the first year, dropping to 0.25% thereafter. Crucially, there are no overseas transaction fees, and you’ll enjoy fee-free ATM withdrawals if you pay the full balance monthly. New and existing Lloyds customers are eligible, but terms and credit limits depend on your individual credit assessment.

Step-by-Step Application Guide

1. Ensure you meet the eligibility criteria and have a good credit history.
2. Gather your personal and financial details for the application form.
3. Complete the online application on the Lloyds website.
4. Wait for a credit check and decision (often instant).
5. If accepted, follow instructions to activate your card and set up direct debit payments.

Advantages at a Glance

The 1% cashback on all spending for the first year stands out, especially as there’s no cap on earnings. Fee-free spending and withdrawals overseas add further value, making it a strong travel companion. Using it for your daily purchases, both in the UK and abroad, can net you easy cashback rewards with minimal effort.

Potential Drawbacks

After the initial twelve months, the cashback rate drops significantly to 0.25%, which is less competitive. The ongoing rewards may not match other cards, especially for high spenders. Additionally, as with any credit card, failure to clear your balance in full each month can result in interest charges that far outweigh the benefits.

Our Verdict

For those who pay off their credit card in full every month, the Lloyds Ultra Card provides excellent introductory cashback and is ideal for fee-free international usage. If you travel or spend a lot in your daily routine, there’s real value to be had—just remember to review your usage after the first year to ensure it remains the best option for you.