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Jul 02

The Best Reward Credit Cards in 2020

Reading Time: 5 mins

We love products and services that make your money work for you. In particular, reward credit cards are great for this as whether you’re using your card for your day-to-day spending or to make a big purchase, all the points add up to a reward. The points you earn with these credit cards can be redeemed as cash, loyalty points in stores, air miles, or even to donate to charity.

Here are some of the best reward credit cards around this year!

cashback credit cards

These reward credit cards mean that every time you spend on them you earn a percentage of that back as cashback. Generally, it is paid back annually as a lump sum credited into your account. They’re great if you can pay your card in full every month – otherwise you’ll face a hefty interest charge (and possibly lose cashback, too). Try using them for things you’d normally spend on anyway, like fuel and groceries. This helps you stay within a budget and earn cashback on day-to-day purchases.

AMERICAN EXPRESS PLATINUM EVERYDAY CARD

Representative APR: 22.2% APR variable
Annual Fee: None
Income Requirements: None

  • Offers 5% cashback on the first £2,000 of spending (up to £100) in the first 6 months.
  • On spending between £2,000 and £5,000 you’ll earn 0.5% cashback, and 1% cashback on any spending over £5,000.
  • No limit on how much cashback you can earn in one year, but you have to spend a minimum of £3,000 in one year to earn any cashback.
  • Get rewarded for inviting friends – for every friend approved you receive £20 cashback (up to £150).

Negatives: You won’t get the introductory bonus if you’ve held an American Express card within the past two years.

Supermarket Reward Credit Cards

These reward credit cards can be a great option for you if you’re a frequent shopper at a particular store. You’ll earn loyalty points on groceries and fuel, which you can spend on their loyalty scheme. It’s a great way to earn extra points on the same purchase you’d make with a debit card – meaning greater rewards for the same outlay!

These are two of our favourite deals but the majority of supermarkets offer their own version.

TESCO PURCHASE CREDIT CARD

Representative APR: 19.9% APR variable
Annual Fee: None
Income Requirements: £5,000+ per year

  • No interest to pay on purchases for up to 18 months from opening the account.
  • Collect Clubcard points on almost everything you buy with the card in store and elsewhere.
  • Collect 1 Clubcard point for every £4 (minimum) spent in Tesco and 1 point for every £8 (minimum) spent elsewhere in each transaction (1 point = 1p).
  • Redeem your points in store or with one of Tesco’s Clubcard partners.

Negatives: Introductory rates will be withdrawn if the minimum payment is not received on time and in full.

Sainsbury’s Bank Dual Offer Card

Representative APR: 20.9% APR variable
Annual Fee: None
Income Requirements: None

  • 0% interest on both balance transfers and purchases up to 20 months, with a balance transfer fee of 3%.
  • Earn 2 Nectar points per £1 spent in store and on Sainsbury’s fuel, and 1 point per £5 spent elsewhere (1 point = 0.5p).
  • Collect 750 bonus Nectar points when you spend over £35 in store, up to ten times, in the first two months.
  • Redeem your points either in store or with one of their participating partner companies.

Negatives: You need to have already had a Nectar card for 6 months prior to applying. To maintain the promotional 0% interest rate you must make sure all minimum payments are made on time.

Air Miles and Reward Credit Cards

Save air miles with reward credit cards

You might not have travel on your mind right now – but collecting air miles now means you could take a holiday of a lifetime to make up for the 2020 pandemic! Not only can air miles be used for discounts on flights but some airlines, such as British Airways, will allow you to use your air miles for:

  • Hotel stays
  • Package holidays
  • Car hire
  • Travel insurance
  • Airport lounge access and upgrades
  • Holiday tours and experiences

Also, points gained through the Tesco Clubcard scheme can also be converted into air miles if you wish.

BRITISH AIRWAYS AMERICAN EXPRESS CREDIT CARD

Representative APR: 22.2% APR variable
Annual Fee: No
Income Requirements: No

  • Earn 5,000 bonus Avios points when you spend over £1,000 in the first 6 months of card ownership.
  • Collect 1 Avios point for every £1 spent. Rewards can add up quickly for those travelling or using a credit card frequently for business.
  • Get a Companion Voucher when you spend over £20,000 every membership year – use to take a companion with you on the same flight and cabin when you redeem.
  • 9,000 Avios points allows you one return flight between London and several European destinations, 20,000 Avios points makes you eligible for a return flight between London and Africa.
  • No annual fee and low APR compared to most other air mile reward cards on the market.

Negatives: You need to be a new Cardmember to American Express to receive the welcome bonus.

Charity Reward Cards

If you like the sound of being able to give a little whenever you spend without the extra hassle then this could be a great reward credit card option for you.

WWF CREDIT CARD

Representative APR: 16.9% APR variable
Annual Fee: None
Income Requirements: None

  • One of the highest paying charity reward cards.
  • Initial £40 donation for just opening the account, a £10 donation if a balance is transferred within the first 90 days of opening, then 40p donated for every £100 spent thereafter.
  • 0% interest on balance transfers for 16 months, and no interest paid for the first 3 months on purchases.

Negatives: While being able to donate easily as you spend is great, after the initial donations, not a huge amount goes to charity. Depending on your spending habits, taking out a cashback credit card and donating the lump sum at the end of the year to charity may mean a larger donation. Plus, this also gives you the option of adding 25% extra on by checking Gift Aid.

Things to Keep in Mind

  • Always carry out your own research as there’s such a large range of products on the market that vary massively depending on individual needs, spending habits, and credit history.
  • These cards are designed for responsible borrowers, you want to make sure you can pay off what you have to every month otherwise you’ll be stung badly by interest rates.
  • Don’t apply for loads of reward credit cards at once – a lot of sudden applications impacts your credit score negatively.

More useful reading

If you need more guidance or help understanding credit cards and what the best option for you may be, check out some more of our articles below.

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Tom
Tom
3 months ago

Currently considering a new card so very much appreciate the article.

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