Boots No7 set £30
Fam & Friends Railcard
Build-A-Bear Credit Card Rewards
Get flights, points, cashback & more
Get Our Free Money Tips Email!
For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out
Spend on one of these cards and they pay you – either in pure cashback or points which can be converted into vouchers for shops, airlines, hotels and more. Do it with maximum care and discipline and you can earn £100s' worth of goodies each year.
If you're debt-free and pay off your card every month, you might as well get paid to spend. This guide analyses the top deals, and explains the potential pitfalls.
Who's this guide for? People who pay off their credit card balance in full every month who want to be rewarded for their spending.
Not what you want? If you're looking to cut debt costs or want other ways to make money from credit cards, see...
0% Balance Transfers | 0% Money Transfers | 0% Purchase Credit Cards | Stoozing | Cashback Credit Cards | Credit cards explained
Will these cards last forever? This guide is fully up to date. However, there is a chance some card firms could cut rewards in future, as the EU has capped the charges providers can levy on shops each time you use their plastic, which funds rewards. Capital One, RBS, M&S, Tesco Bank and Amex have already cut rewards for some customers. So enjoy the perks while you can.
The six golden rules
Reward cards can be a great way of earning £100s' worth of bonuses, just for doing your everyday spending. It sounds great – everyone loves something for nothing. But unless you're careful, cards will actually deliver nothing for something, as there are a couple of major holes to watch for. Here are the golden rules to get the best from them...
Set up a direct debit to repay in full each month so you'll never pay interest, which will dwarf the gain
Getting charged interest almost always scuppers even the very best reward schemes, so quite simply…
If you want rewards, always set up a direct debit to repay the card in full each month, so there's NO interest.
Sadly, some card providers deliberately miss the 'repay in full' option off their direct debit forms. If so, just write 'pay off in full' and send it in. It should be honoured, but call and check to be safe.
If you're not sure you can always repay the card in full, DON'T pick a card for rewards. Focus on a card with a lower interest rate instead – see our 0% Credit Cards for Purchases guide.
-
Use the card for all NORMAL spending to max rewards
Once you've set up a credit card, every time you use it you get paid. While this isn't an excuse to spend more, it does mean from now on…
Use the rewards card for ALL normal spending, replacing cash, cheques and other debit, credit and charge cards.
For those who have work expenses they need to reclaim, this can be a powerful way to earn more, at no cost to you, provided you can cope with paying the bill in full each month.
Do check it's fine with your employer though, as there's a chance it could be seen as a taxable benefit (you'll still be up even if it is).
-
Check the rewards are right for you
Some schemes are focused on making people think they're earning large, when actually payouts are pretty paltry, so go through our best buys below meticulously to check which you'll actually get value from. To what extent depends on the type of scheme.
-
Rewards schemes
Here you earn days out, flights, holidays and more by getting points – and that's where the problems start, as Martin points out...
"
For a TV programme stunt I was once asked to design a credit card that looked good, but contained hidden, abysmally anti-consumer traps. Many signed up to my fake MACS card (SCAM backwards), which promised TWELVE points per pound spent."Most people didn't ask what the points were worth. In fact, they were worth 0.0001p. In other words, nothing. And 12 nothings… is nothing.
"It's this lack of transparency that allows reward schemes to create a magical 'something for nothing' mystique. A Sainsbury's Nectar point is worth up to 1p compared to a Tesco Clubcard point worth up to 4p, so one Clubcard point is worth almost four times more than a Nectar point.
"That's what this guide focuses on: a mathematical evaluation of every scheme to pick the real winners."
-
Cashback or 'close to cashback' cards
With cashback cards you earn cash each time you spend, and it's then usually paid once a year as a lump sum (see our Top Cashback Cards guide). The main advantages are that you know exactly what you're getting and can spend the rewards anywhere.
'Close to cashback' schemes are where money earned can be converted into gift vouchers or can only be spent in a specific shop, eg, M&S. They're great if you'll use them, useless if you won't.
-
-
Use our eligibility calculator before applying for a speedy check of which cards you're most likely to get – and protect your credit score
Usually, the only way to know if you'll be accepted for a card is to apply, but each application marks your credit file. But our Reward Credit Card Eligibility Calculator quickly shows your odds of getting almost every top reward card so you can find the ones most likely to accept you, thus minimising applications.
Quick questions
How does the eligibility calculator work?
It uses a 'soft search', which is one you will see on your credit file but lenders usually don't (and where they do they can't use the info), to give us an indication of your credit score. We then match this against lenders' criteria for acceptance so we can show you the odds of getting each card.
Once you have this knowledge, it will allow you to make a smarter application. Say you have a much better chance of getting a card that's just one month shorter than another at 0%, you may want to go for that. Therefore, you're less likely to be rejected and less likely to need to apply elsewhere, which would add another mark on your credit file.
Will credit scoring affect the deal I get and my credit limit?
When you apply for any credit card, the lender checks you match up against its wish list for what a profitable customer is (for full info on this and how to boost your chances, see our Credit Scoring guide). Yet this doesn't just dictate what products you'll be accepted for, but also how good the ones you actually get are. With credit card rewards it has three main impacts:
-
Some lenders vary a card's 0% length according to credit score. With some, but not all cards, while you might be accepted you may not get the 0% length advertised, eg, you might get 20 months instead of 30. We note in our need-to-knows for each card which cards this may happen with.
-
They always give a variable APR depending on credit score. Every credit card APR (the annual interest rate your card jumps to after the promotional period) is a 'representative' rate. The term 'representative' is defined in the rules as meaning lenders only need to give the advertised rate to 51% of accepted applicants, the rest can be – and sometimes are – charged more.
Having said that, the aim is to clear the card or shift the debt before the 0% deal ends, so if you clear it in time, this is less of an issue as you'll never be charged the APR.
-
Lower credit scores tend to mean you get a smaller credit limit. If this happens, don't automatically jump to get another card instead – at least use what they've given you. See our Credit Limit Too Low? guide.
Unfortunately there's no system that can predict card firms' attitudes to you for these variables. But, as a rule of thumb, the higher the chance the eligibility calculator gives you, the closer to the rep APR and higher credit limit you should get.
-
-
Or join our Credit Club for a full credit health check, including your free Experian Credit Report, Affordability Score and Credit Hit Rate
The MSE Credit Club is a game-changer. For years the credit market has been shrouded in mystery, but our revolutionary tool brings together the key components to give you the full picture and – crucially – what it means for your acceptance chances, and how to boost your creditworthiness.
A credit score alone isn't enough to borrow, as there are other factors at play (it's why many with perfect scores still get rejected). Credit Club shows you...
1. Free Experian Credit Report – Your credit accounts and how you've managed them.
2. Free Experian Credit Score – How lenders rate your past credit behaviour.
3. MSE Affordability Score – How lenders assess if you can afford a product.
4. Your Credit Hit Rate – How likely you actually are of being accepted when you apply.
5. Credit Card and Loan Eligibility Calculators – What your odds are of getting specific top deals.
6. How to improve your credit profile – We show where your profile's strong and weak, and how to improve it. -
Boost the value of your points
By correctly targeting the right rewards to redeem your points on, it's possible to substantially increase the amount. To find out how to do this for all schemes and specific info for Nectar, Avios and Tesco, read our Boost Your Loyalty Points and Avios Boosting Tricks guides.
Best BuysTop cashback cards
These are the top cashback cards available, which have a big intro bonus. For full options see our Top Cashback Cards guide.
Top pick as highest payer, giving up to 5%, but not accepted everywhere
Amex Platinum Everyday*
The American Express* Platinum Cashback Everyday is the top fee-free card, especially if you've big spending to do in the next few months. This is because it has a 5% introductory rate (though only on your first £2,000 of spending, so max £100), then tiered ongoing cashback.
Need-to-knows
- You earn 5% for the first three months (on max £2,000).
- You need to spend at least £3,000 in the year to receive any cashback.
- After the intro period, you earn 0.5% cashback on spending up to £5,000/year.
- All spending above £5,001 in a year will earn 1% cashback.
- Repay in full EVERY month to avoid the 22.9% representative APR as interest will quickly wipe away the cashback gains.
Spend over £9,000 on it a year? In that case, try the Amex Platinum (eligibility calc / apply*). It has a £25 annual fee, but gives the intro 5% rate on up to £2,500 of spending (so max £125) and then tiers up to 1.25% in cashback and so is a winner for bigger spenders. Repay IN FULL or it's 28.2% rep APR (incl fee).
Best BuysTop airline cards
There are a variety of different schemes, but part of the choice depends on which airlines you prefer and their availability, as often the big gain comes from using credit card points along with points from frequent flying.
Watch out for taxes and charges, though, as all reward schemes make you pay these on top when you book a flight using points.
In some cases (especially if travelling within Europe) it might be cheaper to fly with a budget airline instead of paying the tax on top of your Avios points. Read our Cheap Flights guide to see if you can get cheaper flights.
We've only listed the top fee-free card but you can earn more airline rewards with other cards which charge a fee. Frequent flyers should read Airline Credit Cards for all our top cards.
Top fee-free card if you like to travel, plus free companion flight at £20k+ spend
BA Amex*
Fancy yourself as a bit of a jet-setter? Then the British Airways Amex* can reward you with free flights. Plus, if you're accepted you can get 5,000 bonus Avios points, but you need to be flexible with dates as seats are sometimes limited. You can also get a 'free' companion ticket if you spend £20,000/year on the card.
Need-to-knows
- You'll earn one Avios point per £1 spent on the card.
- Spend £1,000 within the first three months and you'll get the bonus 5,000 Avios points.
- Spend £20,000/year, and you get one free 'companion ticket' when booking a flight with Avios. The free ticket can be used to get the same ticket type as the cardholder (if you go first class, so do they), though only on BA. You'll still need to pay taxes and charges on top.
- Compare other frequent flyer cards in our Airline Credit Cards guide.
- See more ways to boost your Avios points.
Best BuysTop supermarket and stores loyalty cards
Some cards give boosted rewards, vouchers or cash for certain retailers or when spending in a particular store. They can be useful if you're a creature of habit, and like to do your weekly shop at the same place every week.
Get 20,000 Nectar points, worth £100, for normal spending, plus ongoing cashback
Amex Nectar*
Spend £2,000 on the Amex Nectar* card within three months, and you'll get 20,000 bonus Nectar points. These are worth at least £100 and can be spent at Nectar retailers such as at Sainsbury's.
Just do your normal spending on it to get the bonus, and remember to cancel after one year if you want to avoid the £25 annual fee that kicks in from year two.
As well as the bonus, you'll earn two Nectar points per £1 spent on the card (plus your usual Nectar points).
Need-to-knows
- You'll receive the 20,000 points bonus once you hit the trigger spend.
- There's an annual £25 fee, but it's waived in the first year. When the year is up, cancel the card if you don't want to pay it.
- Usually one Nectar point is worth 0.5p and you can spend them on anything in the Nectar range. Some retailers give 1p per point, making this freebie worth £300 at theme parks Legoland, Alton Towers, Thorpe Park etc (read Loyalty Schemes for ways to max these).
- You need to give your Nectar card number when you apply for the credit card.
- You can't get the bonus if you've had the Amex Nectar card in the last six months.
- Always carry a back-up card, as Amex isn't accepted everywhere, especially in a lot of smaller retailers.
- Make sure you repay IN FULL every month or you'll pay 22.9% interest, which'll quickly wipe out the rewards gain. The easiest way to do this is setting up a direct debit to repay in full.
Get a £25 M&S vch, plus earn pts for spending, equiv to 2% in first year
M&S Bank*
Accepted new M&S Bank* cardholders who apply via our link can get a free £25 to spend in its stores on almost anything (incl clothes and food). It's split into two parts...
- £20 in M&S pts. Awarded the first time you use the card anywhere for any amount within 90 days.
- Plus extra £5 M&S vch. You're sent a coupon with the card. Just swipe it or use online with your card to buy most things at M&S for any amount and you get another £5 of points.
Just ensure you never withdraw cash (it's expensive) and repay the card IN FULL each month to avoid the 18.9% rep APR interest, and as long as you'd do the spending anyway it won't cost a penny.
Need-to-knows
- Points-related vouchers are credited to your account within 30 days of your first purchase and will be sent in your next available quarterly reward mailing.
- You cannot get the card if you're an existing M&S Credit Card holder or if you've held a credit card with M&S Bank within the past 12 months.
- There's a six-month 0% period on spending with the card, a nice bonus, but don't feel you need to use it. If 0% spending is what you're looking for, see our 0% spending guide.
- Outside of the six-month 0% period, you'll pay 18.9% rep APR, though poorer credit scorers may get a rate up to 22.9%.
- Always pay at least the minimum monthly repayment, or you'll lose the 0% deal.
Possible £25 bonus Nectar pts plus long 0% spending period
Sainsbury's Nectar* 2 pts per £1 spent in Sainsbury's
If you shop at Sainsbury's and can't meet the trigger spend for the Amex Nectar card above (or would prefer a Mastercard) then the Nectar Purchase* credit card gives you a boost on the Nectar points you earn when shopping there.
Plus, you'll get 500 bonus Nectar points worth £2.50 each time you spend £20+ in Sainsbury's in the first two months from receiving your card (max 5,000 points, worth £25). Doing a big shop? You can split it into smaller £20 chunks to max the bonus, getting 500 points on each transaction.
On top of this, there's also a decent 28 months 0% on spending, but only use this if you're disciplined and can fully repay at the end of the 28 months.
Need-to-knows
- New customers applying by 30 Jul 2018 will get 500 bonus Nectar points worth £2.50 each time they spend £20+ in Sainsbury's in the first two months from receiving their card.
- You can also shop online at Sainsbury's to trigger the points bonuses, but buying anything (incl fuel) at Sainsbury's petrol stations doesn't count.
- As well as the bonus, you get two Nectar points for every £1 you spend in Sainsbury's, or one Nectar point for every £5 elsewhere.
- Usually one Nectar point is worth 0.5p and you can spend them on anything in the Nectar range. Some retailers give 1p per point, making this freebie worth £100 at theme parks Legoland, Alton Towers, Thorpe Park etc (read Loyalty Schemes for ways to max these).
- You need to give your Nectar card number when you apply for the credit card.
- The bonus points will be added to your Nectar account within two months of the end of the offer period.
- After the 0% period ends, you'll be charged 18.9% representative APR if you don't pay the card off in full at the end of each month.
Good if you regularly shop at Tesco, plus get 1,000 Clubcard pts worth up to £30
Tesco Clubcard
The Tesco Clubcard credit card gives you extra Clubcard points on top of the ones you'd normally collect. Plus, apply by 18 Sep 2018 and you'll earn 1,000 bonus points (worth up to £30) if you spend anything on the card within the first two months.
On top of the bonus, you earn one Clubcard point for every £8 spent and one point per £4 spent at Tesco – as well as the one point per £1 you get with a standard Clubcard. One point's worth 1p if spent at Tesco, but this is boosted to up to 4p (3p from 11 June) if redeemed for some of Tesco's Clubcard Rewards vouchers.
Need-to-knows
- The 1,000 bonus points will be applied to your account within 12 weeks of your first transaction.
- There's also up to 20 months 0% on spending, which means you only have to pay the minimum balance each month and you won't be charged interest. But after the 0% period ends you must repay the card in full or you'll be charged 18.9% rep APR (some poorer credit scorers could get up to 25.9%).
Get a £10 Amazon gift card, plus earn 0.5% in ongoing rewards (0.75% at Amazon)
Amazon Platinum
If you're a regular Amazon shopper it may be worth considering the Amazon Platinum credit card. It's a good card if you spend a lot at Amazon and want to get something back on your spending. Reward points can be converted into Amazon gift cards, equivalent to 0.75% back on Amazon spends and 0.5% on everything else. However, rewards are only redeemed once you hit a hefty 1,000 points – which is equivalent to £2,000's worth of non-Amazon spending – so it could take a while to hit the trigger.
Plus, accepted applicants will automatically receive a £10 Amazon gift card straightaway.
Need-to-knows
- The £10 gift card will be applied to your linked Amazon account on approval if you qualify for 'Amazon Instant Spend', otherwise it will be applied to your account when you activate the card.
- The card gives 1.5 Amazon Reward Points for every £2 spent at Amazon and 1 point for every £2 spent elsewhere.
- On top of the £10 gift card upon approval, you'll also get a £10 Amazon gift card applied to your account when your balance reaches 1,000 points. This will be loaded to your account within two working days of your statement date.
- Don't use the card as an excuse to spend more than you normally would at Amazon – always check prices elsewhere.
- Make sure you repay IN FULL every month or you'll pay 21.9% interest, which'll quickly wipe out the rewards gain. The easiest way to do this is to set up a direct debit to repay in full.
Best BuysTop 'close to cashback' cards
Some reward cards give you points on all of your spending. These can come close to cashback cards as they offer the ability to spend points earned in a wide variety of places.
Get £100 M&S/Amzn vch or 20,000 Avios for normal spending + 2 free airport lounge passes
Amex Gold*
If you're accepted for the Amex Preferred Rewards Gold* credit card, and spend £2,000 within the first three months, you'll get a bonus 20,000 reward points, equal to £100 in high street vouchers or 20,000 airline frequent flyer points (see need-to-knows below for exactly where you can redeem them).
Plus you'll get membership for the Lounge Club scheme. It gets you two free visits at its affiliated airport lounges (see which lounges you can use) which you can use for yourself twice, or yourself and one guest.
Need-to-knows
- The card usually has a £140 annual fee, but for now is fee-free in the first year. To avoid paying £140, remember to cancel before year two starts.
- You earn one point per £1 on day-to-day spending and two points per £1 spent directly with airlines or in a foreign currency.
- Points can take up to a month to hit your Amex account (though we've seen 'em applied the day you hit the trigger spend).
- As soon as the points are in your account, you can convert them into vouchers for Amazon, M&S, House of Fraser, PC World and more, though retailers vary. Gift cards are sent by post (and received within 10 working days) or email.
- Alternatively, you can convert them to frequent flyer or hotel scheme points and add them to your current stash. Point transfers to other schemes can take up to five working days.
- You can also now use your points to pay off purchases, with them effectively working as cashback. However, you receive slightly less than you'd get exchanging for vouchers; 1,000 points gives £4.50 'cashback' vs £5 in vouchers.
- You can only use your Lounge Club membership if you still hold the Amex. Additional guests or visits are £15 each, charged to your Amex. See more Free or Cheap Airport Lounge Access tips.
- Always carry a back-up card, as Amex isn't accepted everywhere, especially in a lot of smaller retailers.
- Make sure you repay IN FULL every month or you'll pay 22.9% interest, which'll quickly wipe out the rewards gain. The easiest way to do this is to set up a direct debit to repay in full.
Get £50 M&S/Amzn vch or 10,000 Avios for normal spending – an alternative to the Amex above for lower spenders
American Express*
If you won't hit the £2,000 spending trigger on the above card, or you want a card that's fee free, this could suit you better. Spend £1,000 on the Amex Rewards* credit card in the first three months and you'll get 10,000 bonus points. You can convert these into £50-worth of vouchers at retailers such as Amazon and M&S.
Need-to-knows
- You won't receive the bonus if you already have or previously held an Amex Membership Rewards card within the past six months.
- As well as the bonus, you'll earn one membership point per £1 spent on the card.
- Points can take up to one month to hit your Amex account (though we've seen 'em applied the day you hit the trigger spend).
- As soon as your points are in your account, you can convert them into retail vouchers, frequent flyer points, hotel schemes and more. For full options see the Membership Rewards site.
- Gift cards are sent by post (and received within 10 working days) or email.
- You can also now use your points to pay off purchases, with them effectively working as cashback. However, you receive slightly less than you'd get exchanging for vouchers; 1,000 points gives £4.50 'cashback' vs £5 in vouchers.
- Your Membership Rewards points will be shown live on your card membership account homepage and your paper statement.
- If you're having issues with this card you can contact Amex on 0800 1696 767.
- Always carry a back-up card, as Amex isn't accepted everywhere, especially in a lot of smaller retailers.
- Make sure you repay IN FULL every month or you'll pay 22.9% interest, which'll quickly wipe out the rewards gain. The easiest way to do this is to set up a direct debit to repay in full.
Cashback sites may pay you for signing up
As an extra boon, members of specialist cashback websites can be paid when they sign up to some financial products. Do check that it's exactly the same deal though, as terms can be different. And remember the cashback is never 100% guaranteed until it's in your account.
Full help to take advantage of this and pros and cons in our Top Cashback Sites guide.
Reward cards Q&A
-
Is it OK to use a reward card alongside a credit card with existing debt?
It depends. You should always concentrate on repaying your debts, but if they're at 0% (in the form of, for example, a 0% spending or balance transfer card) then it's less of a problem – as long as you're certain you can repay them by the end of the 0% period.
The golden rule for reward cards (hopefully it's large enough at the top of this guide) is always pay the card off in full at the end of the month. So if you have one card for rewards you do that with, and a separate card for your debts you should be OK.
-
Do I get Section 75 protection on these cards?
There's another big bonus to using a rewards card. You actually have far more consumer protection. This all comes about due to what's called Section 75 of the Consumer Credit Act 1974. It means that if you buy something costing between £100 and £30,000, here or abroad, and pay on a credit card, the card issuer's equally liable if something goes wrong.
Now, this protection only applies to credit cards, not debit cards or any other plastic, and it's hugely important. If a retailer were to go kaput, you'd still be able to claim your money back from the card company. Read a full guide on Section 75 Refunds.
-
Can I transfer a balance to a reward card?
Sometimes, but there's little point in doing so – you don't earn points on balance transfers.
Many reward credit cards try to tempt you with competitive balance transfer offers – they want you to spend and shift debts to them. It'll end up costing you, though, as you're unlikely to be able to afford to repay the card in full. Instead use a separate card for balance transfers.
-
How do they make money if I always repay?
The second source of income for card companies is the retailer. When you pay on a credit card, the card company gets between 0.1% and 0.3% of what you spend from the shop/restaurant and this will often cover the cashback.
Therefore in a way all you're doing is getting back the extra that's been factored in to pricing for all customers to cover credit card costs.
Generally, the bigger the retailer the less it pays, as it has more negotiating power with Visa or Mastercard. Also it's worth noting Amex tends to charge retailers more, one of the reasons some smaller companies don't accept it.
-
How many reward cards can I have?
As many as you're accepted for – there's no limit. Though of course, every card application has a small impact on your credit score. So the more you have, the less likely you are to be accepted for more cards.
Don't apply for lots if you may need credit for something important such as a mortgage or a balance transfer card. Full info in our Credit Rating guide.
-
Is it worth going for a card that gives bigger rewards in one store?
If you spend a substantial amount of money in a store then it certainly is worthwhile. But don't let this blind you for the rest of your spending: make sure you maximise what you get elsewhere too (it may be worth having two cards).
Also remember that lots of cards use a 'double earn' promise, so it looks like you get more points using your credit card in the linked store, but actually you would've got the same just using its normal loyalty card. See our Loyalty Points guide for a full explanation.
-
Can I withdraw cash on a reward card?
Yes, but you don't earn reward points for withdrawing cash.
What you do earn is a hefty fee, big interest and a note on your credit file that you've withdrawn the cash.
The rule's simple: never, ever, ever use credit cards for cash withdrawals.
Representative APR
Where credit cards or loans have a representative APR, this means that 51% of successful applicants will be given the stated interest rate.
Credit Cards
With credit cards, the rate for purchases (as opposed to balance transfers or cash withdrawals) is used as the main rate to advertise the card.
So if that is 19.9% representative APR, then 51% of people accepted will get 19.9% APR, but 49% will get a different rate (likely higher).
Personal Loans
Loans are slightly simpler as they only have one rate. So if a loan is advertised as being 7.5% representative APR, this means 51% of accepted applicants will get 7.5%, and 49% will get a different rate (likely higher).
Of course, some people will be rejected outright for the card or loan too.
Credit card minimum repayments
From 1 April 2011 the rules on credit card minimum repayments changed. For customers getting a new credit card agreement the monthly minimum repayment must be AT LEAST:
- 1% of the debt
- Plus the amount of interest that appears on the statement
- Plus charges for missed payments, going over limit or defaults
- Plus any annual fees
This is a minimum, so card companies can charge more if they wish.
Some card providers (including Barclaycard, MBNA and Santander) have applied these changes to existing cardholders too.