Credit card rewards

Credit card rewards
Earn cashback, points & more

Invest in any of these cards, and you’ll reap the rewards – whether it’s in cold hard cashback or points that seamlessly transform into vouchers redeemable at various stores, airlines, hotels, and beyond. If you maintain a debt-free status and diligently clear your card balance each month, you stand to accumulate valuable perks amounting to £100s’ annually. Moreover, leverage our Reward Credit Card Eligibility Calculator to pinpoint the cards with the highest likelihood of approval for you.

Best reward credit cards

• Best Amex credit cards
  Everyday: 5% back for 3 months, up to 1% after
  New. Gold: 25,000 bonus points, £195/yr fee from year 2
• Best non-Amex reward credit cards
  New. Santander Edge: 2% cashback for one year
  New. Asda: 5% cashback for 90 days
  New. John Lewis: Double points for 60 days + 3mths 0% interest on purchases
• Best reward debit card
  New. HyperJar: 2% cashback, can’t use at ATMs
  Chase: 1% cashback + 5.1% savings, no fee

How do reward credit cards work?

In essence, these cards offer simplicity. You simply use them for your regular expenses, and in return, you receive either cashback or points that can be converted into vouchers or discounts at various stores. Utilizing reward cards can serve as an excellent method for accumulating £100s’ in bonuses or cashback.

On the surface, it appears fantastic – who doesn’t appreciate getting something for nothing? However, unless you exercise caution, these cards may end up offering nothing in return for something valuable, as you’ll likely incur interest charges if you fail to pay the full balance every month. Additionally, certain cards may require a minimum spending threshold to qualify for rewards, so it’s imperative to carefully review the terms before selecting a card to ensure it aligns with your needs.

What types of reward cards are there?

Various types of reward credit cards are accessible, each offering distinct benefits:

1. Cashback Credit Cards: Receive a portion of your expenditures back, typically credited to your card balance annually or monthly. This may entail a fixed cashback rate on all purchases or varying percentages based on your shopping destinations. There’s often a limit on the total cashback you can accumulate.
2. General Points Credit Cards: Accumulate points that are redeemable for perks, vouchers, or various goods and services.
3. Supermarket/Department Store Reward Scheme Cards: Acquire points with every card transaction, which can later be utilized at your preferred store.
4. Travel and Airmile Credit Cards: Gather points exchangeable for flights or discounts on upgrades, lodging, and access to airport lounges. Check out our preferred airline credit cards for the best deals.

The five reward card need-to-knows

Get it wrong, and you could actually be left out of pocket, so here’s all you need to know to get the best from reward credit cards…

1. Ensure you set up a direct debit to cover the full repayment every month, preventing any interest charges from accruing.Paying interest can easily negate the benefits of even the most lucrative reward programs. So, it’s straightforward: if you desire rewards, arrange for a direct debit to clear your card balance entirely each month, safeguarding your gains from being eroded by interest charges.

   This practice essentially transforms your credit card into a debit card that rewards you for every transaction. Just be diligent in adhering to your credit limit to avoid incurring fees.

   Unfortunately, certain card issuers may omit the ‘repay in full’ option when setting up your direct debit. Should this occur, promptly contact the lender and request that they ensure the direct debit is configured to settle the balance completely.

   If you’re uncertain about consistently meeting the full repayment obligation, it’s wise to forgo a rewards card altogether. Instead, focus on securing a card with a lower interest rate. Refer to our guide on 0% spending credit cards for more information.

2. Utilize your rewards card for everyday expenses to maximize benefits (but don’t use it as an excuse to overspend). Upon acquiring a reward credit card, you essentially earn money with each transaction. While this shouldn’t prompt reckless spending, it does signify a shift in your approach to expenditures.Replace cash and other debit, credit, and charge cards with your rewards card for all standard purchases. For individuals with reimbursable work expenses, this strategy can significantly boost earnings without incurring any additional costs, provided you manage to settle the bill in full each month.

   Before proceeding, ensure that your employer approves of this practice, as it could potentially be regarded as a taxable benefit (though you’ll still come out ahead even in such a scenario).

   Considering adding an authorized user to your account to enhance cashback or reward points?

   Yes, you certainly can. However, it’s crucial to understand that with credit cards, there’s no concept of a joint card—your card remains yours, and you’re granting them permission to utilize it. Consequently, any expenses incurred remain your responsibility to repay, not theirs.

3. Verify that the rewards align with your needs and accurately assess the true worth of the points (then explore methods to potentially amplify it). 

   Certain programs may appear to offer substantial benefits, yet upon closer inspection, the rewards may be rather meager. Therefore, meticulously scrutinize the offerings listed below to ascertain which ones truly provide value. In essence, there are two primary categories of programs…

   1. Cashback: This type of program operates straightforwardly – for every pound spent, a specific percentage is returned, such as 1%. However, exercise caution regarding intricate conditions – cashback is typically disbursed annually as a credit to your statement, and certain cards necessitate a minimum expenditure threshold to qualify for any cashback.
   2. Rewards Programs: With these programs, you accrue points that can be redeemed for various perks, including outings, air travel, vacations, and more. However, this is where complications may arise. Always ensure you understand the precise value of a point.

   In general, the majority of cards featured in this guide assign a value of between 0.5p and 1p to each point. If uncertain, conduct thorough research BEFORE committing to a particular card.

4. If you’re anticipating a significant credit inquiry, such as applying for a mortgage, it’s best to hold off.Every time you apply for a credit card, there’s a temporary dip in your credit score. Therefore, it’s essential to consider whether obtaining a reward card now might jeopardize other critical credit applications on the horizon, such as a mortgage.

   While a single application might not outright derail your prospects, when combined with other negative factors, it could significantly impact your chances. Refer to our guide on boosting your credit score for additional insights.

   Moreover, if you’re already managing debts elsewhere, prioritizing low-cost debt management over pursuing reward cards can lead to greater savings. Explore our recommendations for the top credit card debt-reduction options in our article on the best balance transfers, and for comprehensive assistance with debt-related issues, consult our guide on managing debt problems.

5. Avoid utilizing these cards for cash advances or withdrawals. Instead, leverage their potential for rewards by treating them akin to a debit card and settling the balance monthly. Our assessment of these cards revolves around this practice.If you find yourself in need of borrowing, prioritize seeking out cards with the most favorable interest rates. This strategy will result in greater long-term savings. Refer to our resources on 0% credit cards for purchases and optimal balance transfers for further guidance.

   When it comes to cash withdrawals, adhere to a straightforward rule: refrain from using these cards under any circumstances. Even if you promptly clear the card balance, you’re likely to incur fees and interest charges.

Amex offers the top-paying rewards cards

If you’re looking for a cashback or reward card, your best bet is likely to be a card from American Express’ range. We’ve selected our top picks below as they have big intro bonuses and/or give unbeatable ongoing rewards when compared with the rest of the market.

Though note a couple of important points:

• Amex isn’t as widely accepted as Mastercard or Visa
• You won’t get the intro bonuses below if you’ve had a personal (not business) Amex in the last two years
• You need to pay them off IN FULL every month, or the interest dwarfs the cashback gain

If this second point applies to you, or if you need a backup card for when Amex isn’t accepted, check out the top non-Amex cards below.

Top fee-free cards. These cards have no ongoing fees and give decent cashback/rewards.
Amex Cashback Everyday	Get 5% cashback for three months, plus up to 1% cashback after (min £3,000 a year spend). This is a strong card if you’re planning to make a big purchase or have a high spend period coming up, as you can take advantage of the 5% back (max £100) in the first three months. The cashback is paid on each anniversary of getting the card, yet you won’t get it unless you spend £3,000 – so it wants you do to most of your monthly spending on the card – consider carefully if you’ll do that before signing up.   Spend £10,000+/year? The Amex Cashback below will beat it.
	– 5% cashback for first 3mths (max £100) – 0.5% cashback on first £10,000 spend – 1% cashback on spend over £10,000 – 31% rep APR	Check eligibility
		Apply*
Amex Rewards	Get 10,000 bonus Amex points if you’ll spend £2,000+ in the first three months – then convert into your choice of rewards. Again, you’ll need a big purchase or high spend period at the start to hit the trigger. If you hit the trigger, you’ll have 12,000 points, which could get you £60 in vouchers (including Amazon and M&S) or Nectar points, or 12,000+ hotel/airline points.
	– 10,000 bonus pts on £2,000+ spend – One Amex point per £1 spent- 31% rep APR	Check eligibility
		Apply*
Top cards with ongoing fees. These cards give bigger cashback/rewards than the cards above.
Amex Preferred Rewards Gold	New. Get 25,000 bonus Amex points if you spend £3,000+ in the first three months. Plus, spend anything in month 15 and earn an extra 5,000 points (offer ends 16 July). Though be aware, there’s a hefty £195 annual fee from year two. There are a couple of ways to earn bonus points with this card, as well as the points from ongoing spending… – 25,000 points if you spend £3,000+ in the first three months – 5,000 points if you spend anything in month 15 – 2,500 points every time you spend £5,000 (max 12,500 points/yr) You also get four free visits to airport lounges each year and £5 cashback on two £5+ Deliveroo orders a month.   Hit the initial £3,000 trigger and you’ll have 28,000 points, which could get you £140 in vouchers (including Amazon and M&S) or Nectar points, or 28,000 airline/hotel points (including BA and Virgin).
	– 25,000 bonus pts on £3,000+ spend – 5,000 bonus pts on any spend in month 15 – £195/year fee (free in first year) – One Amex point per £1 spent- 88.8% rep APR	Check eligibility
		Apply*
Amex Cashback	New. Get 5% cashback for the first three months plus up to 1.25% cashback after and no fee in year one – though there’s a £25 annual fee thereafter (offer ends 2 July). This’ll work out more lucrative than the Amex Everyday card above in year one as there’s no fee and a higher rate of cashback. If you keep the card into year two, there’s a £25 annual fee. This means it’ll only beat the Amex Everyday card if you’ll spend over £10,000 a year, even after the fee, as the cashback rates are higher.
	– 5% cashback for first 3mths (max £125) – £25/year fee (free in first year) – 0.75% cashback on first £10,000 spend – 1.25% cashback on spend over £10,000 – 36.7% rep APR	Check eligibility
		Apply*
Amex Nectar	Get 20,000 bonus Nectar points if you spent £2,000 in the first three months – but there’s a £30 annual fee from year two. Good for Sainsbury’s shoppers (and also those who fly BA a lot). If you hit the £2,000 trigger you’d have 24,000 Nectar points, worth £120 at Nectar retailers such as Sainsbury’s, Argos and eBay. Alternatively, they could be converted into 15,000 Avios, as you can swap Nectar and Avios back and forth.
	– 20,000 bonus pts on £2,000+ spend – £30/year fee (free in first year) – Two Nectar points per £1 spent– 37.8% rep APR	Check eligibility
		Apply*

See all official APR examples.

Best non-Amex cards

As we say above, the top-paying credit cards are all from American Express. But if you already have an Amex, can’t get one, or need a backup for when it’s not accepted, there are a couple of decent options – mostly from supermarket chains. We’ve selected these cards as they give the best returns when used at those stores, but do give some points if used elsewhere.

It’s crucial you pay these off IN FULL every month, or the interest dwarfs any cashback or perks.

Best non-Amex reward credit cards

Top card for existing customers.
Santander Edge Credit Card	New. Get 2% cashback on most purchases up to £15 a month for one year (£3/mth fee) + £18 cashback for some.You can only apply for this card if you have a Santander current account (includes Santander Edge, Edge Up and Everyday accounts).   After the 12 months at 2% are up, the cashback drops to 1% – factoring in the £3/mth fee, the max cashback you can get each month is £12, which requires a £750/mth spend in year one and a £1,500/mth spend each year thereafter.   Get £18 cashback if you’ve an Edge or Edge Up current account. To get it, by 2 August, activate the Santander Edge credit card and set up a direct debit for it to be paid by your Edge or Edge Up current account. Provided you don’t close the accounts before 13 August, you’ll receive the cashback by 22 August into your credit card account.
	– 2% cashback on most spending for first 12 months – 1% cashback after – 29.8% rep APR	Apply* (not in our eligibility calc)
Top cards open to all.
Asda Money Credit Card	New. Get 5% cashback on Asda spending up to £50 in Asda pounds in the first 90 days. Plus, get an ongoing 1% cashback on shopping at Asda, whichincludes spending at George.com and filling up at Asda petrol stations. Plus there’s 0.3% cashback on purchases elsewhere.    Rather than receiving cashback directly, you collect ‘Asda pounds’, which can be converted into discount vouchers – you can then use these online or in store. Asda pounds expire after six months – you can convert them via the Asda Rewards app.
	– 1% cashback at Asda – 0.3% cashback elsewhere- 27.9% rep APR	Apply (not in our eligibility calc)
John Lewis Credit Card	New. Double points in the first 60 days, plus 0% interest on new purchases for three months. Shop at John Lewis or Waitrose and you’ll collect points which are then converted to vouchers three times a year. Vouchers are posted out to you (min 500 points needed to convert). You also get three months at 0% on spending.   In the first 60 days after opening the card account you’ll get double points on eligible spending at John Lewis and Waitrose – ten points per £4. After that, it’s an ongoing five points per £4 at John Lewis and Waitrose, and one point per £4 elsewhere.
	– Five points per £4 spent at John Lewis/Waitrose – 3mths at 0% interest on new purchases – One point per £4 spent elsewhere – Double points in the first 60 days – 39.9% rep APR	Check eligibility

See all official APR examples.

Best reward debit & prepaid cards

A prepaid card from HyperJar and a current account from Chase can both currently beat the Amex Platinum Cashback Everyday card above if you don’t take into account Amex’s intro bonus, or you won’t meet the Amex’s minimum spend. Unlike the other options in this guide, these aren’t credit cards, so you’ll need to top up the account in advance to be able to spend. You also don’t get Section 75 protection with these cards.

Top reward debit & prepaid cards for new cardholders

HyperJar Prepaid Card	Ending soon. Get 2% cashback on up to £10,000 monthly spending for 5 months with HyperJar’s app-based prepaid card. A prepaid card is essentially a pay-as-you-go debit card. You add money to the card, which can then be used in most places where card is accepted, including online. You can only spend the money you’ve loaded to it, so there’s no overdraft and no hard credit check, so it’s easy to get.   To qualify for the cashback, you must sign up for a HyperJar account* for the first time via our link, order a free physical card, and spend at least once using the physical or virtual card before Friday 21 June. You get cashback on most usual spending until 31 October – 2% when using the card via Google or Apple Pay, but only 1% when using the card directly – so be careful to ensure you get the boosted rate.   Most usual spending qualifies for the cashback, though there are some exclusions (eg, car deals and investments – see full exclusions). Each month’s cashback is capped at £200, which you’d only hit if you spent a massive £10,000 each month, so it’s good for major purchases. Though remember, as it isn’t a credit card, you won’t get Section 75 protection – but you will be covered by chargeback protection, as long as you’ve spent at least £10. The cashback is paid into your HyperJar account at the end of the following month.   Important: You can’t use the card at ATMs and there are some fees to be aware of – loading the card with less than £10 is free once a month but then costs 50p each time (it’s always free if you load £10+, so try to load above this), and transferring money out to a bank is free four times a month, but then costs 50p each time, so try to limit this.   See our prepaid cards guide for more options.
	– 2% cashback when paying via Google or Apple Pay – 1% cashback when using the card directly – Cashback lasts till 31 Oct, max £200/month- No monthly fee, usage fees can apply (see above) – Can’t be used at ATMs	Apply*
Chase Bank Mastercard	Get 1% cashback with Chase’s app-only current account. You get 1% cashback on most debit card spending (max £15/month), though there are some exclusions. There’s no minimum pay-in required in the first year, but you’ll have to pay in £1,500+/month after that to continue getting cashback. To use Chase, you’ll need a device with at least iOS 14.1 or Android 8.1.   Its debit card is also a top pick for overseas use, giving near-perfect rates, and you can also open a linked boosted easy-access saver paying 5.1% AER interest on up to £1m – a top rate, though it includes a bonus of 1% AER until 16 January 2025, so the rate will drop then. If you’re thinking of switching to Chase, or using it as your main bank account, read our full Chase review.
	– 1% cashback on most debit card spend – 5.1% savings interest on up to £1m– Fee-free overseas spending & ATM withdrawals	Apply*