Best Rewards Credit Cards

If you use your credit card on a regular basis and always repay the balance in full, a rewards credit card is worth considering.

Many reward credit cards have unique advantages that cardholders can benefit from, including supermarket loyalty points, airmiles and cashback.

When selecting the best rewards credit card, UK customers need to carefully consider the specific rewards each card provider offers, and what type of reward scheme would best match their spending habits.

If you find it difficult to select a rewards credit card, this guide should help you.

Card Name	Score	Details
1. Amex Preferred Rewards Gold Credit Card	★★★★★	Learn more
2. Sainsbury's Bank Everyday Credit Card	★★★★★	Learn more
3. American Express Platinum Cashback Credit Card	★★★★★	Learn more
4. Barclaycard Rewards Credit Card	★★★★★	Learn more
5. HSBC Rewards Credit Card	★★★★★	Learn more
6. NatWest Reward Credit Card	★★★★★	Learn more
7. American Express Nectar Credit Card	★★★★★	Learn more

What Are Best Rewards Credit Cards?

Best rewards credit cards are credit cards that let you earn reward points whenever you spend. Depending on the card, you can redeem these points for free flights, cashback rewards, shopping vouchers, supermarket points and so on. It's worth considering how reward credit cards work before you choose one. 

The main reason providers can offer these rewards is because they earn a fee when you make a transaction with the credit card and they then split this with you.

In some situations, you may have to make a minimum spend of £X, determined by the credit card provider, to receive your reward points. In other circumstances, an annual fee will apply. Therefore, if you want to redeem points, it is worth deciding if the annual fee or minimum spend amounts will justify the rewards you receive.

On average, UK customers spend £333.11 a month on credit cards, and annual percentage rates are increasing, making comparing and selecting rewards cards particularly important to avoid getting into debt.

There are two factors that can help you decide whether to opt for the best rewards credit card: the amount you expect to spend each month and whether you can clear your balance when using the card. If you don't pay off your balance in full each month, the interest charged is likely to outweigh any rewards you earn.

Best Reward Credit Cards Pros and Cons

Of course, reward credit cards have a few benefits and disadvantages you might want to consider before choosing one.

Pros

✔️ Some reward credit cards offer Avios points — With some reward credit cards, you can receive Avios points that grant you plane ticket upgrades or air miles that you can swap for free flights. 

According to Reuters, the number of British people who travelled overseas fell 50% in 2020, but this increased, with 4.1 million visits abroad in 2022. If you are one of these travellers, although you might have to pay charges and taxes, Avios points are a great way to save on your travel costs.

✔️ Receive welcome bonuses with some rewards credit cards — Many rewards credit cards offer welcome bonuses that will give you additional points if you spend a set amount within a given timeframe.

✔️ Credit building opportunities with rewards credit cards — As long as you use a rewards credit card correctly and do not miss payments, you can build your credit history. 

✔️ Fraud and purchase protection are available with some rewards credit cards — It's possible to get fraud and purchase protection with some rewards credit cards. These forms of protection ensure that specific suspicious purchases are flagged and that if you purchase faulty items, the credit card provider will cover them.

Cons

❌️ High-interest rates and annual fees with some reward credit card providers — Many reward credit card providers charge high interest rates if you don't pay off your balance in full each month. Annual fees can be high too, so you need to think carefully about whether you will earn enough in rewards to make the fee worth paying and whether you will be able to clear your balance each month.

❌️ You may feel compelled to overspend — It can be tempting to spend more than you can afford to repay in a bid to earn extra reward points.

❌️ Potential negative impact on credit score — If you miss repayments or exceed your credit limit, this can harm your credit score.

❌️ Some rewards credit cards have limited options to redeem points — For example, Avios rewards credit cards might only provide airline ticket rewards, and other reward credit cards may only allow you to redeem points in certain stores.

Best Reward Credit Cards UK — Reviews

If you are looking for the best reward credit card, you'll now need to compare the different options.

Take a look at our top picks below.

1. Amex Preferred Rewards Gold Credit Card

You can receive 20,000 bonus points if you spend £3,000 on the Amex Preferred Rewards Gold card within the first three months of card membership.

You will also earn three rewards points for every £1 you spend on American Express Travel and two points for every £1 spent directly with airlines.

You will receive one point for every £1 you spend on purchases elsewhere and 9,000 points just for inviting someone else to sign up for Amex Preferred Reward Gold.

If you are wondering what you can redeem these points for, you have plenty of options. You can use your points for travel programs and spend them with British Airways Exclusive Club, Emirates Skywards or Virgin Atlantic Flying Club.

Alternatively, you can use the membership rewards points at selected retailers, such as Amazon.

There are additional rewards you can redeem with this credit card. Whether you want access to exclusive experiences, global airport lounges, personalised offers, or Deliveroo benefits, you can receive these with Amex Preferred Rewards Gold.

However, be warned that while the first year is free, you will pay an annual fee of £195 after that.

In a representative example, if your credit limit is £1,200, your annual fees will be £195 per year, and your purchase rate will be 31.0%. Your annual percentage rate of charge will be 88.8%.

2. Sainsbury's Bank Everyday Credit Card

With the Sainsbury's Nectar Credit Card, you can earn three points for every £2 you spend in Sainsburys, Habitat & Tu or Argos. You can earn one point for every £5 you spend in other retailers and shops.

18 million people are using Nectar points, according to Nectar. Some of the ways you can redeem your points include spending them at various retailers, including Sainsbury's, or using them for days out or travel. If you head to the Sainsburys website, you will see that 10,000 Nectar points are approximately £50. 

There's no annual fee for the card and you'll get a credit limit of between £1,000 and £2,000. This may increase over time if you use your card sensibly.

The card has a guaranteed APR of 29.4% which means you'll get this rate if you're accepted. You might also qualify for a rate reduction if you make all minimum payments on time and use the card regularly.

3. American Express Cashback Credit Card

The cashback credit card from American Express provides several benefits. You can earn 5% cashback on spending in your first three months, up to £125. After this, you'll earn 0.75% on spending up to £10,000 and 1.25% on spending over this.

However, note that the card has a £25 annual fee so you will need to earn enough in cashback to make this fee worth paying.

Welcome cashback rewards often apply with this credit card, so it's worth checking the American Express website to find out which options are available.

This card also offers a range of additional perks. For example, selected offers from Amex travel partners are available, and you'll have access to selected film, music and theatre tickets. You will also benefit from purchase protection for eligible items and a fraud guarantee.

In a representative example, American Express states that if you have a limit of £1,200, you can expect a 31.0% purchase rate and a representative APR of 36.7%.

4. Barclaycard Rewards Credit Card

The Barclaycard Rewards Credit card offers 0.25% cashback, which you can receive for everyday purchases. This means that if you spent £100 at a retailer with your Barclaycard Rewards card, you would receive 25p in cashback. This can quickly add up over time.

Additional cashback rewards are also available on top of this 0.25% option. For example, if you register for Barclays cashback rewards, you can earn up to 15% cashback with selected retailers.

What's more, there are no fees for using your credit card abroad – either for purchases or cash withdrawals. Unusually for a credit card, no interest will be charged if you withdraw cash and pay off your balance in full that month.

In its representative example, Barclaycard explains that if your credit limit is worth £1,200, you will most likely receive a 28.9% purchase rate if you don't pay off your balance in full each month. It has a representative APR of 28.9%.

5. HSBC Rewards Credit Card

The HSBC Rewards credit card lets you earn reward points whenever you spend on the card. You will also get 2,500 bonus points worth £25 when you first spend on your card. And you'll get another 2,500 bonus points if you spend £10,000 in the first year.

Consult the HSBC website to find information about HSBC and its anniversary and bonus points.

As an HSBC Rewards cardholder, you can spend the points you earn in stores or online with eligible retailers.

What's more, you'll be able to enjoy 0% interest on your purchases and balance transfers for the first 6 months. A 2.99% fee applies to balance transfers.

6. NatWest Reward Credit Card

With the NatWest Reward credit card you'll earn selected rewards as you spend. You will earn 1% when you shop at supermarkets, 1% to 15% when you spend at certain retailers, and 0.25% when you spend everywhere else, including supermarket petrol stations.

This credit card has no cap on the rewards points you can earn. Once you have earned at least £5 in rewards, you can turn your rewards into cash, donate to a charity, or convert them to gift vouchers to use at certain retailers.

The card has an annual fee of £24 but this will be waived if you have a NatWest Reward current account.

7. American Express Nectar Credit Card

With the American Express Nectar Card, cardholders can earn two points for every £1 spent. It helps to know that 20,000 points on the American Express Nectar Card are the equivalent of £100.

Your earned points are redeemable at selected retailers, including Argos, British Airways, Sainsbury's and Esso.

Choosing the American Express Nectar Card means you can also receive bonus points when you refer a friend to sign up with them. You'll earn at least 5,000 points, up to 90,000 a year.

The American Express Nectar Card is also an optimum option for film and theatre ticket rewards, and you can also get music tickets before they go on sale.

The card has an annual fee of £30 and a representative APR of 37.8% so it's important to clear your balance each month.

Best Reward Credit Cards UK: The Verdict

If you are considering signing up for a reward credit card, UK customers have plenty of choice. However, you need to ensure that the card you choose best matches your spending habits.

Cashback credit cards, for example, may work well if you want to earn money back on your regular purchases, while a travel rewards card might be more suitable if you travel regularly and want to save money on flights.

Some of the best reward credit cards include Amex Preferred Rewards Gold and the Barclaycard Rewards Credit Card, but comparing all your options is the ideal way to make your choice. Ensure you consider your budget and monthly spending habits and factor in any annual fees.

Compare rewards credit cards with the facts in this Compare Banks article to redeem rewards that suit your spending habits.

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