The easing of lockdown has resulted in an increase in spending as consumers are able to once again socialise and travel within the UK. For those able to repay their balance in full each month, now could be a good time to use a rewards credit card to enable them to earn rewards while also enjoying the regained freedoms.
Many reward credit cards allow shoppers to earn cashback, reward points or other benefits simply by spending on the card. They work in the same way as other types of credit cards, but borrowers will likely need a good credit score to be accepted for these types of cards. Another factor to keep in mind when looking at reward credit cards is that some charge a monthly or annual fee, but there are some highly competitive deals on many cards without a fee.
Although a rewards credit card can be a good way of earning benefits while spending, these types of credit cards can have a high APR, which means that they are not suitable for those who are unable to repay the balance in full each month. Instead, borrowers who may struggle to repay their balance in full may want to consider a 0% purchase credit card, alternatively, those who already have an outstanding credit card balance may want to consider transferring the balance to a 0% balance transfer card.
To help make it easier to choose the best rewards credit cards, below we have highlighted some of the best deals currently available on the market.
For regular Amazon shoppers the Amazon Platinum Mastercard could be a good option as it enables consumers to earn 1.5 Amazon reward points for every £2 spent at Amazon.co.uk. In addition to this, shoppers can also earn 0.5 Amazon reward points for every £2 spent elsewhere. Whenever the Amazon reward points reach 1,000, a £10 Amazon.co.uk Gift Card will be automatically linked to the customer’s Amazon.co.uk account. For Amazon Prime members, this card enables them to earn three Amazon reward points per £2 spent at Amazon.co.uk and earn 0.5 Amazon Reward pints per £2 spend elsewhere. In addition to this, a £25 gift card is given to new card holders, which is added to the account when the card spend is activated.
This card also offers 0% on purchases for the first three months, after which it has a 21.9% APR.
American Express has two very attractive rewards credit cards. Its Rewards Credit Card enables customers to earn one Membership Rewards® point for every £1 spent. During the first three months of card membership customers can earn 5,000 bonus points when they spend £2,000. Points earned can be redeemed with selected retail and travel companies including Virgin Atlantic, M&S, Amazon and Currys PC World.
For those who like to travel British Airways American Express Card could be a good rewards credit card option. This card’s reward scheme enables consumers to earn one Avios point for virtually every £1 spend. If £20,000 is spent each year they can get a travel companion voucher when redeeming Avios for a British Airwards reward flight. As well as this, the card has a welcome bonus that enables customers to earn 5,000 Avios points when they spend £1,000 within three months of account opening.
Both cards also enable customers to earn up to 90,000 bonus points per year through refer a friend with 4,000 points awarded for each friend approved.
These cards both have a 22.2% APR.
HSBC’s Rewards Credit Card Mastercard could be a good choice for those who use their credit card regularly. The card enables consumers to earn one point for every £5 spent on purchases. It also offers a bonus of 2,500 points on anniversary if £10,000 is spent during the previous year for the first five years. As well as this, customers will receive a welcome bonus of 2,500 points after their first transaction. Reward points earned through the card can be redeemed against everyday purchases wherever Mastercard is accepted using the HSBC Pay with Rewards app or website.
The card offers 0% interest on purchases for the first six months, as well as 0% interest on balance transfers made within 60 days to a maximum of 95% of the card limit for six months. There is charge of 2.00%, from a minimum of £5, on balance transfers. After the interest-free period ends it charges 21.9% APR.
Keen travellers may find Creation Financial Services’ IHG Rewards Club Credit Card Mastercard an attractive choice. The card enables consumers to earn one IHG Reward Club point for every £1 spent in the UK, two points for every £1 spent at any IHG location in the UK and two points for every £1 spent abroad. In addition to this, there is an opening offer of 10,000 points when £200 is spent within the first three months of opening the card. Points can be redeemed via a number of options including used against stays at IHG hotels in the UK and worldwide, which includes the Holiday Inn and Crowne Plaza brands.
The card also offers 0% interest for 12 months on balance transfers made within the first 90 days to a maximum of 90% of the card limit. There is a fee of 3.00%, from a minimum of £3 on balance transfers. Transactions made outside the interest-free offer have an interest rate of 22.9% APR.
Consumers who regularly shop in John Lewis and Waitrose may want to consider the John Lewis and Waitrose Partnership Mastercard, which awards five points for every £4 spent in store or online at John Lewis, Waitrose and John Lewis Insurance. This card also enables consumers to earn one point for every £4 spent elsewhere. Points are redeemed as vouchers, which are issued once a customer reaches 500 points in February, June or October and every 500 points is worth £5.
This card has a welcome offer of 0% interest for purchases made within the first nine months. It also has a 0% interest for 18 months on balance transfers and there is a 2.90% charge, from a minimum £5, on balance transfers. After the interest-free periods end it charges 18.9%.
The cards highlighted above are the best reward credit cards that do not charge a fee and which are available to both new and existing customers. For customers prepared to pay a fee there are some highly attractive reward credit cards on offer, these include:
The Rewards Credit Card Mastercard from NatWest and Reward Credit Card Mastercard from Royal Bank of Scotland (RBS) enables consumers to earn 1% in Rewards when the card is used in supermarkets and 0.25% when used at petrol stations. As well as this, the cards enable shoppers to earn 1-15% in Rewards when used at MyRewards retailers and 0.25% when used for all other shopping in the UK and abroad. 5.00 Rewards is £5 when redeemed and rewards can be converted into money and transferred to a current account, exchange for gift cards or tickets with some retailers doubling their value or converted into money and donated to one of the RBS Group chosen charities.
These cards charges an annual fee of £24, but this is waived for Reward or Reward Black Current Account customers. It charges 26.8% APR.
To find out more about these cards and compare all reward cards visit our reward credit card chart.
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