Reward credit cards are an easy way to earn hundreds of pounds in bonuses, just for your normal spending. But while some offers look valuable, you might be paying through the nose in interest fees. Also, consider whether the rewards offered are worthwhile to you.
What are Rewards Credit Cards?
Rewards credit cards are credit cards that reward you for using them by giving you benefits, gifts and vouchers. For every pound you spend you get a reward that differs depending on the credit card.
How do Rewards Credit Cards work?
Getting paid for spending money sounds too good to be true, but that is exactly what rewards credit cards promise. Lenders offer points in returns for borrowers spending certain amounts in particular stores on or on specific items. For example, many of us are familiar with the Tesco Club Card. If you use a Tesco credit card you can earn even more points than you would by simply using the standard club card. Reward credit cards are not limited to the supermarkets and retailers. Many High Street banks also offer cash bank and bonuses for using their cards, as do airlines and hotels.What is the downside of using a Rewards Credit Card?
However, there is no such things as a free lunch and rewards credit cards come with several conditions. First, they tend to have high APRs, and the more generous the reward programme the higher the APR. This means reward cards may only be suitable for those who can repay their balance at the end of every month. Second, reward cards are typically designed to encourage you to spend in one place or to spend more. Borrowers need to be disciplined to avoid overspending or buying items they might not have needed or wanted without the reward incentives. For example, Amazon now offers a reward credit card which promises a £20 voucher on approval to spend at Amazon. Borrowers then receive 75 points per £100 spent at Amazon (150 points for Prime members) and 25 points per £100 spent elsewhere. This is positive for regular shoppers, particularly those making lots of smaller purchases who are not rewarded at present, but it could also encourage overspending online. Third, you need to be aware of when you will receive your rewards. Some cards may pay out monthly, quarterly or annually.How to choose the best Rewards Credit Card?
Good Money Guide has reviewed a range of reward cards on the market and listed our top ten. However, some of the major supermarket rewards cards have not made it onto the list. If you are a regular shopper at a store not listed here, it may be worth looking at their credit card ahead of some of these. The same is true if you have a bank account which offers a rewards credit card; it could make sense to investigate your bank’s reward card instead of ones from other lenders. Additionally, if you are a regular traveller, it is worth looking at the rewards credit cards offered by hotels and airlines. For example, the Marriott Bonvoy reward card (Amex) offers 2 Bonvoy points for every £1 spent and 6 points for every £1 spent at Marriott, which can be exchanged for money off overnight stays. However, with an APR of 38.8% and annual fee of £75, this is probably for loyal guests only. Similarly, the BA Premium card pays out 1.5 Avios points for every £1 spent in general, and three Avios for every £1 spent with BA. And borrowers can collect a 25,000 bonus if they spend £3000 in first three months. But with an eyewatering 74.7% APR, this is most likely only suitable for BA’s most frequent flyers.Top ten Rewards Credit cards reviewed
| Credit Card | Rewards |
|---|---|
| NatWest Reward Credit Card Mastercard | You’ll get 1% back at supermarkets, 1-15% back at selected retailers and 0.25% back everywhere else, including supermarket petrol stations. |
| NatWest Reward Black Credit Card Mastercard | You’ll get 1% back at supermarkets and 0.5% at their petrol stations. Earn 1-15% back at selected retailers and 0.5% back everywhere else. No foreign transaction fees. As a Reward Black customer, your calls will be prioritised. |
| Royal Bank of Scotland Reward Black Credit Card Mastercard | You’ll earn 1% in Rewards in supermarkets and 0.5% everywhere else. Personalised monthly spend offers from some of our selected retailers. Once your balance has grown to at least £5, we’ll give you a choice of what do with them. You can bank them, trade them or donate them to one of our chosen charities. |
| Santander All in One Credit Card Mastercard | You won’t be charged foreign transaction fees on purchases and cash withdrawals made abroad in the local currency. Up to 3 additional cardholders. You can earn 0.5% cashback on all purchases. |
| marbles Credit Card | You could get a credit limit increase after three months. Choose a monthly repayment date that suits you and change it up to twice a year. |
| British Airways American Express ® Credit Card | Welcome Offer Collect 5,000 bonus Avios when you spend £1,000 in your first three months of Cardmembership. Terms Apply. Collect even more Avios with American Express • Collect 1 Avios for every £1 spent on purchases • Collect up to 90,000 bonus Avios a year when you invite friends to join American Express • Plus 1,000 Avios when you add the first Supplementary Card to your Account Travel with a Companion Voucher Get a Companion Voucher when you spend £12,000 each membership year on the Card, which you can use to either take a companion with you on the same flight and cabin or, if travelling solo, a 50% discount on the Avios price you pay for your flight. Vouchers are redeemable when you book a British Airways, Iberia or Aer Lingus Reward Flight in Euro Traveller, World Traveller and economy class cabins only. Reward flights and Companion Voucher bookings are subject to availability and taxes, fees and carrier charges apply per person. |
| Santander Everyday Credit Card Mastercard | Up to 3 additional cardholders. |
| AIB (formerly First Trust Bank (NI)) Visa/Mastercard Option 1 | Spend at least £5,000 (excluding cash advances and refunds) in a minimum of 12 transactions over a period of 12 months and we’ll credit your account with £25, plus an additional £1 for every further £200 spent, Maximum Cashback Loyalty Reward is £250 per annum |
| Clydesdale Bank Business Mastercard | Receive discounts at participating retailers with the Mastercard Business Savings scheme. Access to SmartData, an online accounting information system to help control business expenses. |
| The Royal Bank Credit Card | No foreign transaction fees. |
| Nationwide Member Credit Card All Rounder | No fees for purchases abroad. |
| Nationwide Member Credit Card Balance Transfer offer Credit Card Visa | No fees for purchases abroad. |
| American Express ® Preferred Rewards Gold Credit Card | New Cardmembers earn 20,000 Membership Rewards® Points when you spend £3,000 in the first 3 months of Card membership. T&Cs Apply. UK 18+, subject to status.Access to tickets for must-see music, theatre and film events, often before they go on sale to the general public with American Express Experiences. Travel accident insurance on public transport when tickets are charged on the card. Global Assist support 24/7 when you travel outside of the UK. Eligible for American Express Connect where cardmembers can choose offers from selected retailers to obtain discounts or cashback. Cardmembers are eligible for two £5 vouchers per month (£10 total), when they spend at Deliveroo on their Gold Card.4 complimentary Priority Pass airport lounge visits every year to use at over 1,300 airports globally. |
| British Airways American Express ® Premium Plus | New Cardmember Welcome Offer Collect 25,000 bonus Avios when you spend £3,000 in your first three months of Cardmembership. Terms apply. American Express takes your Avios earning power to new heights • Get an exclusive earn-rate of 3 Avios for every £1 spent with British Airways and BA Holidays • Collect 1.5 Avios for every £1 spend on Purchases • Collect up to 90,000 bonus Avios a year when you invite friends to join American Express • Plus 3,000 Avios when you add the first Supplementary Card to your Account Travel with a Companion Voucher Get a Companion Voucher when you spend £10,000 each membership year on the Card, which you can use to either take a companion with you in the same flight and cabin or, if travelling solo, a 50% discount on the Avios price you pay for your flight. Vouchers are redeemable when you book a British Airways, Iberia or Aer Lingus Reward Flight in any cabin. British Airways American Express Premium Plus Cardmembers will have access to additional Reward flight seats within Club World (business) when booking with a Companion Voucher, subject to availability. Taxes, fees and carrier charges apply per person. |
| American Express Platinum Cashback Everyday Credit Card | New cardmember offer: Get 5% cashback on your purchases (up to £100) for the first three months of Cardmembership. Terms apply. Spend £0 to £10,000 and receive 0.5% cashback on all purchases. Spend over £10,000 and receive 1% cashback on purchases.Earn £20 per friend/family member that successfully applies for an American Express card (Excl. Basic card) through the Referral Programme, up to a maximum of £150 per year. The cashback rebate is not payable in respect of any month in which the minimum payment is not received by the due date.Refund Protection – provides refunds to cardmembers in the event of any retailer, online or offline, refusing to refund the value of any goods taken back within 90 days of them being purchased, maximum £200, max £750 per annum. Global Assist – 24/7 help available when travelling outside the UK. Access to tickets for must-see music, theatre and film events, often before they go on sale to the general public with American Express Experiences. Eligible for American Express Connect where cardmembers can choose offers from selected retailers to obtain discounts or cashback. |
| American Express Platinum Cashback Credit Card | New cardmember offer: Get 5% cashback on your purchases (up to £125) for the first three months of Cardmembership. Terms apply. Spend £0 to £10,000 and receive 0.75% cashback on all purchases. Spend over £10,000 and receive 1.25% cashback on purchases.Earn £30 per friend/family member that successfully applies for an American Express card (Excl. Basic card) and uses Referral Programme (maximum £150 per annum). The cashback rebate is not payable in respect of any month in which the minimum payment is not received by the due date.Refund Protection (90 days to return, receive max £200 per item, max £750 per annum). Global Assist – 24/7 help available when travelling outside the UK. Access to tickets for must-see music, theatre and film events, often before they go on sale to the general public with American Express Experiences. Eligible for American Express Connect where cardmembers can choose offers from selected retailers to obtain discounts or cashback. |
| Coutts & Co Silk Credit Card Visa | Membership to LoungeKey, access to over 700 airport lounges worldwide. Charged at £20 per person per visit |
| The NatWest Longer Balance Transfer Card | Longer 0% interest period. |
| MBNA 0% Transfer and Purchase Credit Card | Introductory 0% purchase offer only applies to purchases made within 60 days of opening. 3 additional cards. Earn up to 15% cashback on purchases through Smart Rewards at popular retailers. |
| Tesco Bank Foundation Clubcard Credit Card Mastercard | Free Tesco Bank CreditView giving 3 years’ unlimited access to credit score and report via TransUnion, credit alerts and CreditView report updated every 28 days to monitor changes 5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points. |
| Virgin Money Virgin Atlantic Reward Plus Credit Card | Earn up to 30,000 bonus points when you apply for a Virgin Atlantic Reward+ credit card and meet qualifying spend. You’ll earn 15,000 points with your first card purchase. Spend £3,000 within 90 days of opening your account for an extra 15,000 points, That’s a round trip to destinations including New York, Florida, or the Caribbean in the bag! Virgin Points cost is based on the standard season price for one return flight in economy. Taxes, fees, and surcharges are payable separately. This offer is now boarding and closes 2 October 2023 Annual fee and terms apply. Minimum spend applies for maximum bonus Virgin Points. Credit subject to status, UK residents only, 18+. 1.5 points for every £1 spent on everyday purchases. Restrictions apply*. 3 points for every £1 spent direct with Virgin Atlantic or Virgin Holidays. Restrictions apply*. |
| MBNA Long 0% Money Transfer Credit Card | Earn up to 15% cashback on purchases through Smart Rewards at popular retailers. 3 Additional cards. |
| M&S Bank Transfer Plus Mastercard | Earn rewards points every time you shop and they’ll be converted into M&S vouchers for you to spend. We’ll give you 1 rewards point per £1 spent in M&S and 1 rewards point for every £5 spent elsewhere. 100 rewards points = £1 in M&S vouchers. 55 days’ interest-free credit when you pay your balance in full and on time each month. You can add an additional cardholder over the age of 18 to your account. |
| M&S Bank Shopping Plus Mastercard | Earn rewards points every time you shop and they’ll be converted into M&S vouchers for you to spend. We’ll give you 1 rewards point per £1 spent in M&S and 1 rewards point for every £5 spent elsewhere. 100 rewards points = £1 in M&S vouchers. 55 days’ interest-free credit when you pay your balance in full and on time each month. You can add an additional cardholder over the age of 18 to your account. |
| Great Wall International Gold Credit Card | Earn points for every eligible £1 you spend. Points can be exchanged for a choice of gifts by calling the Bank of China (UK) |
| Sainsbury’s Bank Balance Transfer Credit Card Mastercard | Earn 750 bonus Nectar points each time £35 or more spent on Sainsbury’s shopping, up to ten times in your first 2 months, up to a total of 7,500 points, offer available for new customers. Earn 3 Nectar points per £1 spent on Sainsbury’s shopping and fuel. Earn 1 Nectar point for every £5 spent elsewhere |
| Great Wall International Classic Credit Card | Earn 10 points for every eligible £1 you spend. Points can be exchanged for a choice of gifts by calling the Bank of China (UK) |
| Sainsburys Bank Nectar Credit Card | Earn 10,000 Nectar points if you spend £400 at Sainsburys, Argos or Tu Clothing during first 2 months of opening. Earn up to 3 nectar points per £1 spent at Sainsburys and Argos. Earn 1 Nectar point for every £5 spent elsewhere. |
| John Lewis and Waitrose Partnership Mastercard credit card | Earn 5 points for every £4 spent on eligible purchases at John Lewis and Waitrose and 1 point for every £4 spent elsewhere. 1 point = 1p (min 500pts) Earn 3.75% in points towards gift vouchers on eligible spend at John Lewis and Waitrose in the first 90 days from account opening. |
| HSBC Rewards Credit Card | Earn 1 point for every £5 spent on purchases. Bonus 2,500 reward points on anniversary if £10,000 spent in previous year. 1 point = 1p (no min). 2,500 bonus reward points after first transaction. |
| The American Express ® Rewards Credit Card | Earn 1 Membership Rewards® point for every £1 spent thereafter. Earn up to 90,000 bonus points per year through refer a friend, 4,000 points awarded for every friend approved. 1 point = 0.45p (min 1000 points) to shop, other rewards have differing conversions, Earn 10,000 bonus Membership Rewards® points when you spend £2,000 in first 3 months of cardmembership, Refund Protection – provides refunds to cardmembers in the event of any retailer, online or offline, refusing to refund the value of any goods taken back within 90 days of them being purchased, maximum £200, max £750 per annum. Global Assist – 24/7 help available when travelling outside the UK. Access to tickets for must-see music, theatre and film events, often before they go on sale to the general public with American Express Experiences. Eligible for American Express Connect where cardmembers can choose offers from selected retailers to obtain discounts or cashback. |
| HSBC Balance Transfer Credit Card Visa | Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away. |
| HSBC Classic Credit Card Visa | Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away |
| Sainsbury’s Bank No Balance Transfer Fee Credit Card Mastercard | Collect up to 3 points per £2 in Sainsbury’s, Argos, Habitat & Tu clothing when you pay with a Sainsbury’s Bank Credit Card & swipe or scan your Nectar card. And you’ll get 1 point per £5 elsewhere |
| Tesco Bank Clubcard 0% Balance Transfer Fee Mastercard | Collect points almost everywhere you spend using your card, plus your usual points in Tesco. |
| Vanquis Bank Chrome Credit Card Visa | Chrome from Vanquis Bank offers protection on goods and services you pay for costing more than £100 and up to £30,000. This safety net is offered via Section 75 of the Consumer Credit Act. The protection applies for the entire cost even if you only use your plastic to pay for part of the purchase – such as the deposit – as long as the full purchase amount is still within these two values. |
| Yorkshire Bank Business Mastercard | Automatically receive special discounts at a range of participating retailers with the Mastercard Business Savings™ scheme. Terms and conditions apply. Full details of the programme and the participants are available at Mastercard Business Savings. |
| HSBC Premier Credit Card Mastercard | A selection of rewards from a range of partners. Earn 1 point for every £1 spent within the UK and earn 2 points for every £1 spent outside the UK. Points can be redeemed for shopping vouchers and frequent flyer miles 1 point = 1p (no min). Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Premier Privileges. Complimentary Global Wi-Fi at over 1m hotspots. 10% discount on selected hotels booked through Agoda and Expedia. 12 months Expedia+ Gold membership. Membership to LoungeKey, access to over 750 airport lounges worldwide. Charged at £20 per person per visit. |
| Tesco Bank Clubcard Credit Card with Low APR Mastercard | 5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points. No cash advance fee and no handling fee on Tesco Travel Money. |
| Barclaycard Platinum 15 Month No Fee Balance Transfer Visa | 4 additional cards available, Buy tickets for up to 3500 selected live events through Barclaycard entertainment and get 5% off tickets per year and exclusive presale tickets on selected festivals with 10% off ticket prices. Save 10% on food and drink at all UK 02 Academy venues. Earn up to 15% cashback on selected retailers with Barclaycard Cashback Rewards. Up to 5 months free trial of Apple Music, Apple TV+, Apple News + and Apple Arcade. |
| Barclaycard Forward Credit Card Visa | 4 additional cards available, Buy tickets for up to 3500 selected live events through Barclaycard entertainment and get 5% off tickets per year and exclusive pre-sale tickets on selected festivals with 10% off ticket prices. Save 10% on food and drink at all UK 02 Academy venues. Rate discounts: 3% interest rate reduction if you make all your repayments on time for the first year, and a further drop of up to 2% more if you continue to do so in the second year. |
| Virgin Money 16 Month Balance Transfer Credit Card Mastercard | 3 additonal cards available and enjoy exclusive offers and rewards on the Virgin Red app. |
| Virgin Money 26 Month Balance Transfer Credit Card Mastercard | 3 additonal cards available and enjoy exclusive offers and rewards on the Virgin Red app. |
| Virgin Money 12 Month All Round Credit Card Mastercard | 3 additonal cards available and enjoy exclusive offers and rewards on the Virgin Red app. |
| Virgin Money 20 Month Balance Transfer Credit Card Mastercard | 3 additonal cards available and enjoy exclusive offers and rewards on the Virgin Red app. |
| Virgin Money Travel Credit Card Mastercard | 3 additonal cards available and enjoy exclusive offers and rewards on the Virgin Red app. |
| Ocean Finance Credit Card | 3 Additonal cards available |
| MBNA Long Term Low Interest Credit Card | 3 additonal cards |
| Aqua Advance | 3 additional cards available |
| HSBC Premier World Elite Mastercard | 2 points for every £1 spend in the UK. 4 points for every £1 spend outside the UK. 40,000 Anniversary Points Boost – qualifying spend £12K in 12 months from account opening. Points can be redeemed for airline frequent flyer miles, retail vouchers from selected stores and luxury wines and champagnes or can be used to make donations made to the charity of the customer’s choice. Membership to LoungeKey, complimentary access to over 750 airport lounges worldwide. Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Premier Privileges. Complimentary Global Wi-Fi at over 57m hotspots. 12 months Expedia+ Gold membership. 10% discount on selected hotels booked through Agoda and Expedia. |
| The Co-operative Bank Members’ Credit Card Visa | 1p earned for every £2 spent in The Co-operative Food and Department stores (excluding in-store concessions) and 1p earned for every £3.33 spent anywhere else. Cashback will be added to your share of the Group profits and this will be paid to you twice a year. |
| IHG Rewards Club Credit Card Mastercard | 1 IHG Rewards Club point for every £1 spent in the UK. 2 IHG Rewards Club points for every £1 spent at any IHG location in the UK. 2 IHG Rewards Club points for every £1 spent abroad. |
| Lloyds Bank Online Platinum Low Rate Mastercard | 1 Additional card available |
| Royal Bank of Scotland Reward Credit Card Mastercard | 1% Rewards for your spend at the supermarket. 1-15% in Rewards when you shop at MyRewards retailers. 0.25% in Rewards for all your other spending, including at supermarket petrol stations. If you already have a Reward current account, you’ll get the card’s annual fee refunded |
| Santander Business Cashback Credit Card Mastercard | 1% cashback on all business spend with no cap. Cashback paid Monthly into Card Account. No foreign transaction fees on purchases abroad that are paid in local currency. Additional cards at no extra cost. |
| Virgin Money Virgin Atlantic Reward Credit Card | 0.75 points for every £1 spent on everyday purchases. Restrictions apply*. 1.5 points for every £1 spent direct with Virgin Atlantic or Virgin Holidays. Restrictions apply*. |
| Santander World Elite Mastercard | 0.5% on £1 to £3000 of monthly spend. Maximum of £15 cashback paid per month. Access to over 1000 airport lounges. 24/7 Mastercard concierge. Access to over 1 million Wi-fi hotspots, 40% discount on Santander travel insurance |
Different Types of Credit Card
All Credit Cards
Everyday credit cards offer you the most flexibility for everyday use while having a reasonable interest rate, a balance transfer option and an initial interest-free period on purchases.
Balance Transfer Credit Cards
Astute credit card holders know they can shop around for a new card and transfer the balance from their old one, benefiting from a lower interest rate or even an interest-free period. Balance transfer credit cards are also a great way to consolidate debt from several cards to one.
Rewards Credit Cards
Reward credit cards are an easy way to earn hundreds of pounds in bonuses, just for your normal spending. But while some offers look valuable, you might be paying through the nose in interest fees. Also, consider whether the rewards offered are worthwhile to you.
Cash Back Credit Cards
You’ll be familiar with the cashback concept, where you earn rewards in the form of money or credit on your account when you spend. You must shop around as the “earn rate” varies, while some cards affiliated to a brand reward more for spending with that brand.
Travel Credit Cards
Don’t get hit by high fees when using your credit card abroad. Look for a credit card that offers no fees on foreign transactions and preferably some rewards as well.
Bad Credit Credit Cards
When you have a poor credit score, perhaps because of bankruptcy or some form of previous default, you can begin to rebuild your score using these cards. For those with credit problems here are our top ten bad credit credit cards.
Money Transfer Credit Cards
Using a credit card to pay off your expensive bank overdraft (or another loan) makes total sense when you can do so interest-free. Therefore, look for a card that has the longest 0% money transfer period and pay off as much as you can from the card quickly.
Air Miles Credit Cards
Bag yourself free travel simply by spending on your credit card. But select your card carefully as only some offer air miles, and some are more generous than others.
Purchase Credit Cards
If you use your credit card simply for purchases and are not concerned about balance transfers and other perks, you need to look at any interest-free purchase promotional period, followed by an ongoing generous low APR.