Credit card rewards
Earn cashback, points & more
Spend on one of these cards and it pays you – either in pure cashback or points that convert into vouchers for shops, airlines, hotels and more. If you're debt-free and pay off your card every month, you can earn goodies worth £100s each year. Plus our Reward Credit Card Eligibility Calculator will show cards you've the best odds of getting.
First, a quick overview of reward credit and debit cards...
Reward credit and debit cards allow you to earn cashback, points or vouchers for your everyday spending. If you're debt-free and pay off your card IN FULL each month, these cards can help you earn £100s of pounds worth of rewards each year.
Don't just apply - go via an eligibility calc. Our Reward Credit Card Eligibility Checker speedily shows acceptance odds for top cards (some are 'pre-approved'), without affecting your creditworthiness.
Choose the right rewards for your spending habits. Whether you prefer cashback, points, or vouchers, pick a card that aligns with your lifestyle and spending patterns.
Always pay off your balance IN FULL every month. To maximise rewards and avoid interest, always clear your balance on time.
Lloyds Ultra Credit Card | - 1% cashback for 1yr (0.25% after) |
Amex Everyday Credit Card | - 5% cashback for 5 months (max £125) |
Amex Gold Credit Card | - 40,000 intro points worth £225 at Amazon, M&S & more |
If you do get a card, ALWAYS follow these Reward Credit Card rules:
a) Set up a Direct Debit to repay credit cards IN FULL each month
b) Only use the card for all NORMAL spending to max rewards
c) Don't borrow or withdraw cash on these credit cards
Now we've given you a brief overview and you understand the basics, let's take you through reward credit and debit cards in more detail...
How do reward credit & debit cards work?
They're quite simple. You just do your everyday spending on them and, in return, you get cashback or reward points which you can turn into vouchers, or money off at various shops. Reward cards can be a great way of earning £100s' worth of bonuses/cashback.
It sounds great – everyone loves something for nothing. But unless you're careful, credit cards will actually deliver nothing for something, as you'll likely get hit with interest if you don't pay them off IN FULL every month. Some cards even impose a minimum spend to get the rewards – so always read carefully before choosing a card.
What types of reward cards are there?
There are many types of reward cards, some are credit cards and some are debit cards. They give different levels of protection should a purchase go wrong. Credit cards give Section 75 protection, whereas debit cards give the lesser, but still useful, chargeback protection.
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Cashback credit cards. Get a percentage of the amount you spend back, usually as credit added to your card balance annually or monthly. You may get a flat cashback rate across everything you pay for, or differing percentages depending on where you shop. The amount of cashback you can earn is often capped.
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General points credit cards. Collect points that can be exchanged for perks, vouchers, or goods and services.
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Supermarket / department store reward scheme cards. Earn points whenever you spend on your card which you can then use with your chosen supermarket or department store.
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Travel and air miles credit cards. Earn points you can exchange for flights or discounts on upgrades, hotels, and airport lounges. See our top air miles credit cards picks.
The five reward card need-to-knows
Get it wrong, and you could actually be left out of pocket, so here's all you need to know to get the best from reward credit cards...
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 interest doesn't wipe the gain.
By doing this, you've effectively made your credit card a debit card, but one that pays you every time you spend on it. Just make sure you stay within the credit limit or you'll pay charges.Sadly, some card providers deliberately miss the 'repay in full' option off when you set up your direct debit.
If it's not there, call the lender and ask them to make sure the direct debit is set up to pay off in full.If you're not sure that you'll always be able to repay the card in full, DON'T pick a reward card. Focus on a card with a lower interest rate instead – see our 0% interest free credit cards guide.
Once you've got a reward card, you get paid almost every time you use it. 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 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 reward points, 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).
Can I add an additional cardholder to my account to boost cashback or reward points?
Yes, you can. Though with credit cards there's no such thing as a joint card – it's your card and you're giving them permission to spend on it. Any spending is yours to pay off, not theirs.
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. Broadly, there are two types of scheme...
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Cashback. This is the most straightforward type of scheme – for every pound spent, you get a certain amount back, for instance, 1%. But watch out for tricky terms – cashback tends to be paid annually as credit to your statement, and some cards have a minimum spend requirement to get any cashback.
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Rewards schemes. Here you earn days out, flights, holidays and more by getting points – and that's where the problems can start. Always ensure you know what a point is worth.
Generally, most cards in this guide have one point being worth between 0.5p and 1p. If you're not sure, check BEFORE you take the card out.
Boost the rewards you get
By correctly targeting the right rewards to redeem your points on, it's possible to get bonus points or substantially increase the amount. To find out how to do this for all schemes and specific info for Avios – which give airline points for British Airways and other airlines in the Oneworld group – Nectar and Tesco, read our Boost your loyalty points and Avios boosting tricks guides.
All credit card applications have a slight short term negative impact on your credit worthiness, so you need to weigh up whether getting a reward card now could harm other, more important credit applications you may have on the horizon, like a mortgage. A single application may not kibosh your chances, but together with other negatives, it may well do. See Credit score boosting for more tips. Additionally, if you’ve debts elsewhere, you'll save more by keeping your debts cheap instead of going for reward cards. See Best balance transfers for the top credit card debt-cutting cards and Debt problems for full step-by-step help.
They're a tool to get you rewards by using them like a debit card and clearing them each month, and we rate them based on that.If you need to borrow as well, you're far better off focusing on getting the lowest interest rates – that'll save you much more money. See 0% credit cards for spending and Best balance transfers for more info.And when it comes to withdrawing cash, the rule is simple – never, ever, ever use these cards for cash withdrawals, as you'll often be charged a fee and interest, even if you pay the card off in full.
Set up a direct debit to repay credit cards IN FULL each month to ensure you never pay interest
Use the card for all NORMAL spending to max rewards (these cards aren't an excuse to overspend)
Check the rewards are right for you and the real value of the points (then see if you can boost it)
Don't apply for a credit card if you’ve a major credit application coming up, such as a mortgage
Don't borrow or withdraw cash on these credit cards
Try our free Credit Club
Sign up to MSE's Credit Club to boost your credit power – access our free tools to see how the financial world views you, including:
An Eligibility Rating that combines your credit score, affordability, and market trends.
View your full credit report – your financial CV.
Get personalised acceptance odds for credit cards and loans.
Top reward credit & debit cards
The top rewards cards are usually from American Express due to its big intro bonuses and/or unbeatable ongoing rewards when compared with the rest of the market, though we include other options where their flexibility and/or lack of fee mean they will beat Amex for many.
American Express cards aren't as widely accepted as Mastercard and Visa and you won't get the intro bonuses below if you've had a personal (not business) American Express card in the last two years.
Top reward credit and debit cards – what we'd go for
All of our top pick credit cards offer cashback or points for everyday spending. The American Express cards also have introductory bonuses if you spend a certain amount, though pay them off IN FULL each month or the interest will dwarf the gain. This is our analysis to help you decide, scroll down to the table for full details.
Top for everyday and overseas spending. Lloyds Ultra is a cracking best-buy if you pay it off IN FULL each month – as done right, there’s no interest and you’re effectively paid each time you spend. Pay for something on the card and you'll get 1% cashback. Crucially, unlike with most other cards, the cashback isn't capped, so use it for all your normal everyday spending and any planned one-offs (it does have the standard exclusions such as gambling, foreign currency and online trading). It also charges no fees for overseas spending, and that same 1% cashback applies abroad too, so it’s strong whether you're buying the weekly shop or spending on holiday. This is decent extra cash: £1,000/mth of family spending would earn you £120/yr cashback (paid each Jan).
Top Amex cashback pick. Amex's Cashback Everyday gives 5% cashback, usually only for purchases in the first three months (max £100), but right now it's boosted this to five months (max £125). The cashback's paid after a year, provided you spend £3,000+ a year on it. After the five months, it's a decent 0.5% cashback on spending up to £10,000 a year and 1% above. Overall, it's a strong option for bigger spenders.
Top for 'free cash' & perks. Amex's Preferred Rewards Gold gives 40,000 bonus intro points worth £225 in vouchers for Amazon, M&S, Sainsbury's & more (please note, it can take up to a month for the points to appear in your account). To get it you'll need to spend £5,000+ in the first six months – so, again, it's best for bigger spenders or those with an upcoming big purchase. You won't be eligible if you've had an American Express card in the last two years.
There's also £5 cashback on two £5+ Deliveroo orders a month and four free visits to airport lounges each year. Plus, you get an ongoing one Amex point per £1 spent (worth 0.5p). The card is free in the first year, but from year two there's a hefty £195/year fee, so diarise to cancel if you don't want to pay.
Lloyds Ultra
No fee
12.9% rep APR
Top for everyday and overseas spending. Pays 1% cashback for first year on spending in the UK and overseas (0.25% after). Unlike with most other cards, the cashback isn't capped and is paid each Jan. It’s also available to both new and existing Lloyds customers.
Ongoing rewards:
1% cashback in first year on worldwide spending (0.25% after)
Other perks:
Fee-free for overseas spending & ATM withdrawals (if you pay off IN FULL each month)
Amex Cashback Everyday
No fee
29.4% rep APR
Top Amex cashback card. This card gives 5% cashback, usually only for purchases in the first three months (max £100), but right now it's boosted this to five months (max £125). The cashback's paid after a year, provided you spend £3,000+ a year on it. You won't be eligible if you've had an American Express card in the last two years.
Ongoing rewards:
0.5% cashback on first £10,000 spend, 1% above
Amex Preferred Rewards Gold
Free for first year, £195/yr after
29.4% annual interest
Top for 'free cash' & perks. Open this card and you'll get an intro bonus of 40,000 points worth £225 in vouchers for Amazon, M&S, Sainsbury's & more, though to get it you'll need to spend £5,000+ in the first six months. You won't be eligible if you've had an American Express card in the last two years.
Ongoing rewards:
One Amex point per £1 spent (worth 0.5p)
Other perks:
2 x £5 cashback on Deliveroo orders a month & 4 airport lounge passes
Next-best credit & debit reward cards
We've more choice below if none of the above suit. We've ranked by ongoing cashback, but if you've a short-term high-spend period, many of the cards have initial cashback boosts, which could make them winners for you. And some of the cards have fees, so do keep an eye out.
Santander Edge
£4/mth fee
29.9% annual interest
Decent ongoing cashback and effectively 'free' for a year for Santander current account holders. Pays 1% cashback (max £10/mth) on spending in the UK and overseas. There's a £4/mth fee but apply before 13 Jan 26 and Santander current account holders could get £48 cashback.
Ongoing rewards:
1% cashback on worldwide spending (max £10/mth)
Other perks:
Fee-free for overseas spending & ATM withdrawals (if you pay off IN FULL each month)
Amex Cashback
£25/yr fee
29.4% annual interest
Strong cashback, particularly for bigger spenders. Pays the joint-top intro cashback at 5% for the first three months (max £125) with no min spend required, plus decent cashback after. If you won't spend £10,000+ each year, the Amex Everyday card above works out better, as it has no annual fee.
Ongoing rewards:
5% cashback for 3mths (after it's 0.75% cashback on first £10,000/yr spend, 1.25% above)
Amazon Barclaycard
No fee
28.9% rep APR
Virgin Money Everyday
No fee
24.9% rep APR
Barclaycard Rewards
No fee
28.9% rep APR
Strong overseas card with decent, but beatable, cashback. Pays 0.25% cashback on spending in the UK and overseas, and unlike with most other cards, the cashback isn't capped.
Ongoing rewards:
0.25% cashback on worldwide spending
Other perks:
Fee-free & interest-free overseas spending & ATM withdrawals (if you pay off IN FULL each month)
MBNA Cashback
No fee
12.9% rep APR
Cashback guaranteed for three years. In the first three years it pays 0.25% cashback on spending in the UK and overseas, and unlike with most other cards, the cashback isn't capped. There's no cashback after the three years is up and the overseas spending moves from being fee-free to a charge of 2.95%.
Ongoing rewards:
0.25% cashback for 3yrs on worldwide spending
Other perks:
Fee-free for overseas spending (if you pay off IN FULL each month)
Chase
No fee
Easy to get & decent cashback. Pays 1% cashback on most UK supermarket, transport & fuel spending (max £15/mth). After a year you must pay in £1,500/month to get this. Only requires a soft credit check to open, so it's easier to get than the credit cards above.
Ongoing rewards:
1% cashback on most UK supermarket, transport & fuel spending (max £15/mth, must pay in £1,500/mth after a year)
Other perks:
Fee-free for overseas spending & ATM withdrawals (there's also a linked 4.5% easy-access savings account)
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.
For full help to take advantage of this and the pros and cons, see our Top cashback sites guide.
Other MSE credit card guides... 0% balance transfers | What is a balance transfer credit card? | 0% credit card for spending | 0% money transfer cards | All-rounder 0% cards | Travel credit cards | Air miles credit cards | How does a credit card work | Full credit cards section | Student credit cards | How to pay off credit card debt more quickly | Prepaid cards
Reward cards FAQs
Yes. Credit cards come with Section 75 protection – if you buy something costing £100–£30,000 and it goes wrong (eg, retailer goes bust), the card firm is jointly liable. Debit and prepaid cards don’t have this. Note: only the main cardholder’s purchases are covered, and paying via PayPal usually cancels this protection. Read the full guides to using PayPal to pay on a credit card.
Credit card providers don't make money from interest alone. Every time you pay by card, the retailer pays a small fee to the card company – this often funds cashback. Amex charges retailers more than Visa or Mastercard, which is why some shops don’t accept it.
As many as you're accepted for – there's no limit. Though of course, every credit 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. It's best not to apply for lots of cards if you may need credit for something important, such as a mortgage or a balance transfer card. Full info in our Credit rating guide.
If you spend a substantial amount of money in a store then it certainly is. 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.
This largely comes down to two things – which rewards you value and which cards will accept you. Generally speaking, reward credit either offer cashback on spending or award you loyalty points as you spend, which you can typically convert into vouchers or air miles.
Take a look at our top-pick cards above to compare the rewards on offer, and decide which you would make use of the most. Our Reward Credit Card Eligibility Calculator will then show you the acceptance odds for most of the top cards before applying.
Reward cards give you cash or loyalty points when you spend on them. So as long as you repay them IN FULL each month (preferably by Direct Debit so you never forget) and don't bust your credit limit, you neuter the 'debt element' of the card, and just have plastic that pays you to spend on it.
Amex points give you a choice of rewards (with varying values), so what to go for will come down to both your preferences, and how best to maximise the value. You should receive points within a couple of days after spending, though they can take up to 30 days. You can see a full list of ways to redeem your points on the Amex Membership Rewards site – some options include cashing in for gift cards, using them to spend on Amazon and transferring them to Nectar points.
Do I get Section 75 protection on these cards?
How do card companies make money if I always repay?
How many reward cards can I have?
Is it worth going for a card that gives bigger rewards in one store?
Which reward card is best for me?
What reward card has the best rewards?
What can I use my Amex points for?
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