Reward credit cards – which are the best for me?

Reward cards are helpful credit cards that will give you cash back, allow you to cash in points or earn other rewards over time.

They’re not to be confused with the loyalty cards or store cards such as Nectar, Tesco Clubcard and the Boots card for example.

These are actual credit cards that you can use to buy things. However they also allow you get a bit back on occasion

• Best cashback cards
• Credit cards that offer Avios and airmiles
• Cards that give good reward points
• Who should use reward credit cards?
• Getting started with reward credit cards

Important: Ignore this article if you don’t pay off your balance in full each month. It’s not worth going for the rewards if you are paying more interest on your debt.

Reward credit cards are great for people who always pay their credit card balance each month before the interest period kicks in. However, there’s no point if you can’t pay the debt off each month. Instead it may be better to go for a card with the cheapest interest rate, this way you can keep your interest low.

Cashback Cards

The cashback card we like the most is the American Express Platinum CashBack Credit Card.

This card offers 5% cashback for the first three months on purchases up to £125. Then 1.25% cashback is earned on every full pound spend. This card has an annual fee of £25 but it’s still worth it if you’re a big spender.

At the time of writing this hard holds a representative variable APR of 28.2%. You can also take advantage of its recommend a friend scheme. Each time you do, you’re rewarded with £30 additional cashback. This can stack until it’s £150 a year!

reward cards that give avios and airmiles

• British Airways are running an Avios scheme with American Express. You get 5,000 free bonus Avios when you spend over £1000 in the first 3 months of having it. You earn one Avios per £1 spent. There’s no annual fee and the APR is 22.9%. You also get travel accident benefit up to £75,000 with the card.
• The Virgin Atlantic card – with this you get a typical APR of 22.9%. To begin with you get 5,000 bonus Flying Club miles when make your first purchase within 90 days of opening the account, after which you’ll get 0.75 of a mile for every £1 spent with the American Express card. You’ll also earn double miles when you spend direct with Virgin Atlantic or Virgin holidays

reward cards that give good points

• The John Lewis and Waitrose partnership MasterCard is 18.9% APR and promises 0% interest on purchases for six months from account opening. Every time you shop you earn points towards vouchers to spend at participarting stores.
• Similarly, the M&S Credit Card will give you one point for every £1 spent in Marks and Spencer and one point for every £2 spent elsewhere. 100 points will get you a £1 voucher, which you can then spend in Marks and Spencer.
• Earn one point for every £1 you spend with the Tesco Clubcard credit card. The card also has 18 months at 0% on purchases, a typical APR of 19.9%  and nine months at 0% on balance transfers with a handling fee of 9.9%.
• AA credit card is handy for anyone who uses the AA. They give you a reward of one point for every full £2 spent, with one point for every £1 spent on Fuel, Motoring or AA products. Reward points can be redeemed at any time on a range of products and services from AA, motoring and travel products, shopping vouchers and cash back.

who should use rewards credit cards?

Nearly two thirds of credit card holders pay off their balance in full every month. If you are one of these savvy people who don’t have to pay extra each month, then the interest rate on your card won’t really matter.

*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.

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