About Reward cards
With a reward credit card, each time you spend you get something back in reward points, such as AA, Nectar or Clubcard points.
Some of the best credit card rewards allow you to exchange points for store discounts, gift vouchers and even flights.
The cards below are ordered by interest rate (APR) - read the descriptions for more detail on the card rewards.
What is a reward credit card?
Some credit cards give you points you can then redeem against goods and services – these are known as reward credit cards.
The points offered can also be converted into vouchers for in-store purchases, making it possible to work out an equivalent value to the cashback offered by other cards for the same spending.
Some reward cards also offer points which can often be traded for special offers in-store or days out.
Should I take out a reward credit card?
Using a reward credit card instead of cash or your debit card for everyday spending could be a great way to earn money back on unavoidable purchases.
Which card you pick depends on your needs and spending habits. For example, Nectar points, which can be collected via certain American Express and Sainsbury’s cards, can be put towards anything from restaurant bills to cinema tickets.
Similarly, if you spend regularly at Amazon, Boots, or M&S, a NatWest or RBS reward card could be right for you.
Multi-purpose reward credit cards
Reward cards are often competitive in other areas, enabling them to be used for various different purposes.
This means that even if you’re not a regular shopper or frequent flyer, some reward cards could be worth considering for the added benefits on offer.
However, as interest rates on reward credit cards are normally average at best, they’re only really suited to people able to clear their balance in full every month.
What are the best reward credit cards?
The best reward credit cards will vary according to the uses you have for each reward. If you do your shopping with a particular retailer, then their own reward credit card which gives you points to spend in their store can be attractive. However, if you do your shopping all over the place, even a really attractive rate of points rewards that can only be used in one store probably won't be worth it.