Best Reward Credit Cards UK

Posted by

Many people prefer to combine personal loans with loyalty schemes for extra benefits and convenience. If you are going to incur a debt, you may as well get something else out of it, after all. Read this guide on reward credit cards.

What is a reward credit card?

As the name might suggest, this type of credit card is one which comes with customer rewards. It is an incentive to choose the credit card provider and stay with them. The rewards are normally either points or cashback which you earn whenever you pay for a purchase with the card. This encourages frequent use of the card so that you can get the most out of it. Of course, you need to make sure that you are paying back whatever you are spending on time.

How to Choose a Reward Credit Card

Many retailers offer credit cards to their customers, but they aren’t always worth it. If the card has no advertised benefits, there is not much point. It is also better to avoid credit cards with APRs higher than 21%. If you end up paying off high interest charges then it will cancel out the benefit of any rewards you earn. You should choose a reward credit card provider which suits your shopping habits. You could have more than one, but not too many.

10 of the Best UK Reward Credit Cards

Below are some of the most beneficial reward credit cards in the UK. They are not ranked in number order because some cards will be better for some users than others. You should compare them all to find the best option for you.

Amex Rewards Low Rate Credit Card

This American Express credit card comes with a lower interest rate than usual. The downside of Amex is that not all retailers accept these cards. However, the plus side is that you can earn Membership Rewards points with every purchase. Then you can redeem them for shopping vouchers, gift cards, hotel nights, flights, and spa experiences.

  • Credit Limit: £1,200
  • Representative APR: 9.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: earn 2,500 points bonus for spending £1,000 in the first 3 months, get £25 for every 5,000 points

 

Tandem Cashback Credit Card

The Tandem card is an alternative to Amex because, as a Mastercard, it is more widely accepted. You must have a minimum annual income of £13,000 to qualify for the card. You have to open an Instant Access Savings Account with Tandem as well, which is free to do. Application for the card will require downloading the iOS or Android app.

  • Credit Limit: £500 – £12,000
  • Representative APR: 18.9%
  • Annual Fee: None
  • Cashback: 0.5% above £1
  • Benefits: mobile app for tracking spending and cashback, no-fee purchases abroad

 

Tesco Bank Low APR Credit Card

If you are going to get a credit card, then you might as well get one with a low APR that also serves as a Tesco Clubcard. Tesco is one of the most popular supermarkets in the UK, so you can earn Clubcard points to swap for vouchers. You can redeem the points for travel perks, dining out, or experiences like cinema trips or theme parks.

  • Credit Limit: £1,200
  • Representative APR: 5.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: 0% interest on purchases for 1 month, earn Tesco Clubcard points on most purchases (1 point for every £4 in Tesco and 1 point for every £8 outside Tesco)

 

Sainsbury’s Bank Balance Transfer Credit Card

If you already have a Nectar loyalty card then you probably shop at Sainsbury’s to collect those points. You could apply for a Sainsbury’s card to transfer debt from another credit card with higher interest and fewer benefits. This Sainsbury’s credit card will boost your Nectar points to redeem them on shopping, travel, dining, or entertainment.

  • Credit Limit: £1,200
  • Representative APR: 20.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: bonus of 750 points each time you spend £35 on shopping at Sainsbury’s in the first 2 months (up to 10 times), earn 2 Nectar points for every £1 you spend at Sainsbury’s and 1 point for every £5 spent elsewhere

 

ASDA Cashback Credit Card

With the Asda cashback card, the cashback actually comes in the form of Asda vouchers. This makes it worthwhile if you do your grocery shopping at Asda. Every time you shop in Asda stores or on george.com you’ll earn 1% back to spend in the future. If you use the card to make purchases anywhere else, you will still earn cashback for Asda.

  • Credit Limit: £1,200
  • Representative APR: 19.9%
  • Annual Fee: None
  • Cashback: 1% at Asda, 0.2% everywhere else
  • Benefits: cashback vouchers to spend at Asda, 0% interest on purchases and balance transfers for a limited time, £5 discount on Travel Money purchases over £300

 

IHG Rewards Club Credit Card

If you travel and stay in IHG Group hotels a lot, then you probably already joined the IHG Rewards Club. You could earn extra points to redeem for free hotel stays with the credit card, and get a complementary card for your partner. You’ll get 1 point per £1 spent in the UK and 2 points for every £1 spent abroad or at an IHG location within the UK.

  • Credit Limit: £1,200
  • Representative APR: 18.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: earn £10,000 bonus IHG Reward points if you spend £200 within the first 3 months, automatic Gold Elite status (comes with 10% bonus points, priority check-in, and extended check-out)

 

TUI Credit Card

It may not be explicitly called a rewards card, but the TUI credit card is another in-house point-earner. If you book your holidays through TUI then it may be worth getting this card to help you earn some discounts. You can redeem every 2,500 points for a £25 voucher to go towards your holiday booking costs. The TUI points will keep adding up.

  • Credit Limit: £1,200
  • Representative APR: 19.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: get £25 off your next purchase from TUI when you open the credit card account, travel money without fees, 0% interest on purchases for 3 months, earn 1 point per £1 for TUI purchases or 1 point per £2 for outside purchases (100 points = £1 reward)

 

M&S Bank Reward Plus Credit Card

If you frequently shop at Marks & Spencer, then their rewards card could be a good credit option. You can get £25 worth of points after you join if you meet the conditions. Then you will earn points every time you use the card. It will collect 2 points for every £1 at M&S for the first year then go down to 1. It is £1 for every £5 spent elsewhere.

  • Credit Limit: £1,200
  • Representative APR: 19.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: 2,000 M&S points for using the card within the first 90 days, double M&S points on M&S shopping for the first year, £5 M&S coupon for new cardholders and bonus 500 points when you use it (exclusions apply)

 

John Lewis Waitrose Partnership Credit Card

The John Lewis & Waitrose Partnership credit card is rewarding for customers who shop at either store. It is a bit more expensive to shop there than other places, but it will get you a £5 voucher for every 500 points you earn. If you are a partnership credit card holder then you can enter exclusive prize draws and get double points offers.

  • Credit Limit: £1,200
  • Representative APR: 18.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: earn 1 point for every £1 you spend at John Lewis and Waitrose or 1 point for every £2 everywhere else, interest-free purchases for the first 9 months, up to 3 additional cardholders

 

Amazon Platinum Mastercard

Most people these days rely on Amazon for last-minute purchases due to the lure of fast delivery with Prime. But not everybody knows that Amazon offers a credit card and a rewards points scheme. You do not have to be an Amazon Prime member to apply or earn points. Every 1,000 points will earn you a £10 gift card to use on Amazon.

  • Credit Limit: £1,200
  • Representative APR: 21.9%
  • Annual Fee: None
  • Cashback: None
  • Benefits: get a £10 Amazon gift card when you sign up as a new cardholder, earn 0.5 points per £2 on shopping outside of Amazon or 1.5 points per £2 on Amazon (3 points per £2 for Amazon Prime members)