In cash-strapped times, it’s vital to take advantage of perks when they come along.
If you’re debt-free and pay off regular credit card spending in full every month, why not sign up for one that offers benefits to boot?
You can get things like cashback, accrue loyalty points to turn into vouchers, and even score airmiles just by doing your usual day-to-day spending.
Reward credit cards work like standard credit cards in that they allow you to buy things in advance and pay them back as a lump sum in a monthly instalment. You should pay off the balance in full every month to avoid high APR (Annual Percentage Rates) rates, otherwise, the interest you’ll wind up owing will take the shine off the rewards.
Some cards draw you in with interest-free purchases for a limited period, which can be helpful ahead of major milestones like Christmas, weddings and birthdays. Just make sure you pay it all off before your term ends.
Choosing which reward credit card to apply for depends on your personal circumstances, where you spend and your spending habits, and what rewards appeal the most to you; there isn’t a one-size-fits-all option here.
The most popular cards will only be eligible for those with a top credit score. If you’re not sure where yours sits, there are plenty of eligibility checkers to visit online before you apply (plus they won’t show up as a footprint on your credit report).
Some shops like Sainsbury’s, John Lewis and Marks & Spencer offer reward credit cards, but if you don’t shop there often, it’s pointless to get one as the best rewards will very likely be tied to brand purchases. However, Sainsbury’s is part of the Nectar loyalty programme, so you can earn bonus points through credit card spending and by shopping at Nectar partners which can later be redeemed for things like flights.
There are three main types of rewards to get:
Ultimately, never apply for a credit card if you can’t pay it off at the end of the month before interest hits. One thing that’s never rewarding? Debt.
We’ve taken a look at some of the most popular rewards-based credit cards on the market today to help you decide on your next step.
See the best credit cards with reward perks below.
Yonder
A London-centric card (for the time being, at least), Yonder rewards customers with one point for every Pound spent, boosted to up to five points for every Pound if you shop with one of their ‘experience partners’, which change every month so there’s always something fresh to visit, see or do.
These partners are London-based restaurants, experiences and venues, making it a good card for someone who goes out a lot in our fair city.
The other perk of Yonder is that you can spend abroad without incurring additional fees. The card is delivered digitally to keep on your phone's wallet or you can order a physical version for £5 extra.
Repayment is helped by the option of weekly and fortnightly payments to make it easier to pay back what you owe in full and swerve interest.
Buy now, Yonder
British Airways American Express Credit Card
There are a variety of different cards under the Amex umbrella. Some provide cashback, while others encourage you to collect and use points at an array of well-known retailers, so you're not tied to just one shop. You can even get priority access to experiences like gig tickets; Amex is a sponsor of BST Summertime and London’s O2 Arena.
Amex is probably best known for dishing out Avios, a global loyalty currency accepted by British Airways and other airlines to earn flight discounts or upgrades. The biggest draw is that if you spend a certain amount on your specifically British Airways American Express Credit Card in a year, you could collect a Companion Voucher Reward Flight to use at BA, where you can either have a friend fly with you for free or get a half-price flight using Avios. Avios can also be used on selected hotel stays.
Is it worth it? If you're already a credit card holder, switching to Amex can earn you rewards without being tied to a certain retailer. It's a point for every Pound spent, but you can boost this baseline offering by signing up to more premium Amex cards (which come with an annual fee). If you run a small business, regularly entertain clients or love the idea of travel discounts for everyday shopping, Avios points can rack up very quickly.
Buy now, American Express
The Amazon Barclaycard credit card
It turns out that Amazon can offer more than competitively-priced products - apply for the fee-free Amazon Barclaycard and you'll get cashback on your purchases too, effectively making your spend even cheaper.
The offer is 1% in rewards when shopping on the Amazon site and 0.5% elsewhere (dropping to 0.25% after 12 months). When you've earned £5 in rewards, you can turn this into an Amazon gift card. Right now, newcomers can get a £20 gift card if their application is approved.
If you're an Amazon Prime member (and let's face it, you really should be if you're considering applying for this card), the perk gets sweeter with 2% cashback in rewards when shopping over key events like July's Amazon Prime Day.
Cardholders can also benefit from 0% interest on all purchases for six months from opening the account. Since this card is in partnership with Barclaycard, you'll have to use the bank's app to manage your account.
A major flaw is that the digital credit card is not currently hosted on Apple Pay, but you can use it via contactless or on Google Pay if you have an Android device.
Buy now, Amazon
John Lewis Partnership Credit Card
If you're a JLP devotee, it's a no-brainer to apply for the company's credit card - but only if you pay it off in full at the end of the month because the current 28.9% APR will bite.
New customers get double points on spends made with John Lewis or Waitrose in the first 60 days, and you'll continue to earn points when using the card at other retailers. Cardholders also get access to exclusive perks and competitions.
Right now, successful applicants can get £40 in John Lewis and Waitrose vouchers when opening an account before January 6, 2025, and spending at least £250 at one of the retailers within 45 days.
Buy now, John Lewis
M&S Rewards Credit Card
M&S's flood of high street brands entering its fashion offering hasn't gone unnoticed, nor its A-list collabs with the likes of Bella Freud and Sienna Miller. The Foodhall is increasingly a place where many do their weekly shop, not just pick up a lunchtime sarnie.
If you find M&S on your bank statements more than any other retailer, you could be losing out by not applying for the store's credit card. Cardholders can earn M&S vouchers on regular spending, collect reward points and get 0% interest on purchases and balance transfers for a limited time, which is helpful if you're considering making big purchases or want to consolidate debt for a short period.
Accounts and reward points can all be managed online too, making it easy to access your data from anywhere.
Buy now, M&S
