Catch the wave of rewards with our top picks for rewards credit cards! In this table, we've gathered up the "earn-rates" of different cards. Remember, the value of a point depends on the card issuer, programme, and even how you're redeeming the points. Discover our top 10 rewards credit cards and set sail for a summer full of savings and fun. Here's to making your holiday spending work for you.
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
Rewards credit cards offer you points for your everyday spending, which can then be redeemed for a variety of travel and lifestyle freebies. You could enjoy free flights and upgrades with a frequent flyer credit card, get rewarded when you shop at your favourite supermarket or get cashback on your account.
As well as offering these benefits, rewards credit cards typically come with a higher interest rate and sometimes an annual fee. So it’s smart to compare your options to make sure the benefits outweigh the costs.
Rewards credit cards usually earn you points for every £1 spent on eligible transactions. When you’ve earned enough points, you can redeem them for rewards such as travel, flight upgrades, gift cards, cashback and merchandise.
Most rewards credit cards also have higher standard interest rates than other options, and sometimes also an annual fee, because it costs lenders money to offer a rewards programme. Compare the potential costs of a rewards card against the potential gains, so that you can decide if the card you’re considering is going to actually benefit you.
The rewards you can get with a credit card depend on the card you choose and the rewards programme. Some of the most popular reward categories include:
The steps required to use your points to redeem rewards vary depending on the credit card and the rewards programme. But there are a few key factors to remember:
There are a variety of different rewards credit cards you can compare and choose based on the benefits you want. These can be separated into four types of reward programmes, which we’ve outlined below.
Frequent flyer (or “air miles”) programmes are traditionally designed to earn you points and other benefits when you travel with a particular airline, such as British Airways or Virgin Atlantic. There are two main ways you can earn frequent flyer points with a rewards credit card:
Read our guide to frequent flyer credit cards.
These enticing choices grant you the flexibility to exchange accumulated points for a variety of benefits, such as frequent flyer miles for travel, merchandise, gift cards or even credits towards your account balance.
Many of these rewards programmes also offer auto-redemption for specific rewards, such as cashback, gift cards or frequent flyer points. For example, ANZ allows cardholders to opt-in for auto-redemption through Virgin Australia’s Velocity program. With this option, all ANZ Rewards points are automatically transferred to your Velocity account annually, periodically or when you have earned a specific amount of ANZ Rewards points.
Other credit card companies offer instant redemptions with certain retailers. If you have a CommBank Awards credit card, for example, you can redeem your points in-store at Myer or Flight Centre.
| Response | % of respondents |
|---|---|
| Virgin points | 8.33% |
| Tesco Clubcard points | 80.00% |
| Nectar points | 50.00% |
| Marriott Bonvoy Points | 0.00% |
| M&S Rewards points | 20.00% |
| John Lewis Partnership points | 15.00% |
| I don't collect any of these | 13.33% |
| Avios | 13.33% |
| Amex Membership Rewards points | 6.67% |
Additionally, cashback rewards are a common feature across various frequent flyer, credit card, and supermarket or retail rewards initiatives mentioned earlier. Simply choose the “cash” or “gift cards” section within your rewards programme to explore the array of available options in this category.
In addition to your specific card’s rewards programme, credit card networks offer their own range of benefits such as Mastercard Priceless Cities and American Express Experiences (formerly American Express Invites).
Comparing credit cards helps you find the features that suit your lifestyle while also keeping costs affordable. Below, you’ll find a checklist of things to consider when you are comparing reward credit cards.
There are several ways to unlock rewards with a credit card. We have outlined the most common below:
Rewards credit cards often come with a variety of additional features that can add value to the account you choose. Popular perks include:
Lounge access with Priority Pass
"The value you receive from reward credit cards comes when you spend on them. So long as you’re sensible with your money (and are able to pay off your credit cards in full each month to avoid interest), the more of your day-to-day spending that you can put on them, the better!
Monthly subscriptions such as Netflix are an easy one to move over. If you commute to work, you can also pay for that on your credit card to earn some rewards from your travel costs. Even your normal household bills such as those for council tax, water and energy could earn you rewards, if you have the option to ‘top up’ your account balance online with a credit card.
Earning cashback or points on things that need to be paid for anyway is a good way to make the most of your reward credit cards."
The value of a rewards credit card depends as much on the cardholder as the actual card you choose. So rather than making a definitive statement about whether or not reward credit cards are valuable, let’s take a look at the key factors that make them likely or unlikely to work for you.
It’s worth noting that there are some exceptions to the guidelines above. If you can’t afford a high annual fee, for example, you might still get a lot of value out of a reward credit card with no annual fee. On the other hand, if you regularly use a credit card but also have a lot of debt, it might be better to switch to a balance transfer or low interest rate credit card so that you get value out of paying less interest.
Although rewards credit cards can be a useful way to gain benefits from your purchases, it’s important to bear in mind that you must repay the entire amount (plus interest, unless your card provides an interest-free period for clearing the balance). Additionally, there are annual fees and various other expenses to take into account. Nevertheless, by carefully considering both the perks and costs when comparing reward credit cards, you can find an option that suits your needs.
Rewards credit cards can be hugely beneficial, but only if they’re used the right way, which generally means using them for spending you were planning anyway. Crucially, you should never spend more on a rewards credit card than you can afford to repay and always choose a rewards programme that you’re likely to get the most out of. You should also ensure you pay off your balance in full each month to avoid high interest charges and, if the card has an annual fee, make sure the benefits of the card outweigh this.
We compare the best UK supermarket credit cards to help you find the one right for you and save money.
Earn Avios with a travel credit card and use Finder’s Avios calculator to find out how much you will earn.
Trade points for pounds with a cashback card. Use Finder’s cashback calculator to find out how much you will earn.
Find out how Gatwick’s premium No1 Lounge fared during peak hours, whether it’s worth the entry fee and how to enjoy complimentary access.
Plastic? That’s so 2018. Metal cards have finally reached UK shores, but the selection remains limited.
Avios is changing – find out what that means for you and learn which are the best cards for earning Avios points to redeem against flights, hotels and more.
Store credit cards offer you rewards for shopping with a particular brand. Learn about the advantages and disadvantages of these cards and compare live rates.
How will you reach your credit card spending limit to receive your sign-up bonus? Here are our tips to get you closer to your target and maximise the rewards.