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1-MINUTE GUIDE TO

REWARD CREDIT CARDS

CHRISTMAS IS COMING!!!

As you go about your festive shopping you could earn great freebies and rewards by using the right credit card. 

Our favourite reward credit cards also have 0% interest rates on Purchases which let you SPREAD THE COST of your shopping interest free

 

Need to know

  • Credit card rewards vary from earning loyalty points for supermarkets through to cashback credit cards and credit cards that earn airmiles
  • It is worth getting a credit card online, provided by somewhere that you shop regularly. Most reward credit cards give more points for money spent with them. Tesco give 5 points for every £4 spent at their stores but only 1 point for every £4 spent elsewhere
  • Reward credit cards are a great way to put extra money towards treats, but in cash terms the return is better on a cashback credit card. The Santander cashback credit card gives up to of 3% back on purchases, if you converted Tesco Clubcard into a cashback percent it would be 0.25% on a non Tesco shop (1.25% on a Tesco shop)
  • HOWEVER reward credit cards online don't have an annual fee (unlike many cashback credit cards) and will be better for you if you need a 0% interest deal
  • Have a look below at what the ‘points’ you earn are actually worth. A Tesco clubcard point has more than twice the cash value of a Nectar point although both do great deals online that will help your points go further
  • These cards are good if you do ALL your spending on them and accumulate as many rewards as possible. As long as you pay on time it’s a good way to get you and your family some free treats  
  • Your points will expire so make sure you don't miss out. Clubcard points last 2 years, Barclaycard will only keep 3 years worth of points and M&S points expire after 15 months
 

What the reward points are actually worth

General Earning

Cash value of points

What you can spend them on

Tesco Clubcard points

A point for every £4 spent 

£0.01

  • Avios airmiles
  • Discount in sore
  • Days and meals out

Sainsbury’s Nectar points

A point for every £5 spent

£0.005

  • Easyjet
  • Discount in store
  • Days and meals out

Barclaycard Freedom points

2 points for every £1 spent

£0.003

  • Days out
  • Restaurants
  • High street and online stores

AA Rewards points

12 points per £1 member

6 points per £1 non-member

£0.005 member

£0.0025 non-member

  • AA Products
  • High street and online stores
  • Cashback
  • ‘Experience‘ days

Natwest YourPoints

1 point for every £1 spent

£0.005

  • Easyjet
  • Ebookers
  • High street and online stores
  • Days out

M&S points

1 point for every £2 spent

£0.26

  • M&S only

All the points are earnt at a higher rate at certain stores and their value increases when spent on specific rewards

 
 

Best Credit Cards online

Barclaycard Freedom Rewards card

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Why we like it:

  • 0% balance transfer for 9 months
  • £30 worth of points if you spend £300 in the first 3 months
  • collect points on all purchases
  • double points on petrol and supermarket spending
  • triple points on Freedom partners (BHS, Currys PC World)

Watch out:

  • PAY OFF PURCHASES IN FULL EACH MONTH to access rewards and avoid interest
  • no opening purchase offer
  • 18.9% APR
  • 2.9% handling fee on transfers

What happens next

 
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Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Tesco Clubcard

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Why we like it:

  • earn Clubcard points for all spending
  • converting points to vouchers can be worth the same as 1.25% cashback
  • 0% interest for 18 months on purchases
  • 0% interest for 3 months on balance transfers

Watch out:

  • 18.9% APR
  • need good credit history

What happens next

 
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Representative Example: representative 18.9% APR (variable) if you spend £1,200 at 18.9% annual purchase rate (variable)

Sainsbury's Nectar

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Why we like it:

  • earn Nectar points wherever you spend
  • 0% on purchases for 16 months
  • 0% on balance transfers for 16 months
  • no annual fee

Watch out:

  • 16.9% APR
  • 3% handling fee for balance transfers
  • rewards from Sainsbury's spending capped at £1000 spend per month

What happens next

 
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Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.94% annual purchase rate (variable)

Sainsbury's low rate nectar card

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Why we like it:

  • 6.9% APR Representative variable
  • double nectar points on Sainsbury's shopping
  • 1 point for every £5 spent elsewhere
  • no annual fee

Watch out:

  • PAY OFF BALANCE IN FULL EACH MONTH to access rewards and avoid interest
  • rewards from Sainsbury's spending capped at £1000 spend per month
  • no balance transfer fee BUT no interest free period for transfers or purchases

What happens next

 
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AA

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Why we like it:

  • 0% on purchases for 10 months
  • 0% balance transfer for 12 months
  • double points on fuel purchases
  • AA members can earn upto 4% back

Watch out:

  • 16.9% APR
  • 3% handling fee for balance transfers
  • no transfers from Virgin or MBNA cards

What happens next

 
check this out

Representative Example: representative 16.9% APR (variable) if you spend £1,200 at 16.9% annual purchase rate (variable)

Watch out! Four rules for all credit cards online

  • Don’t use your credit card to withdraw cash unless you have to. Your credit card is VERY likely to have a high interest rate on any cash that you take out which you will start getting charged from the moment you withdraw it. There is also likely to be a withdrawal fee (we’ve only found a couple with no fees at all). These rates won’t be affected by another deal you might have
  • Look out for annual fees. The fees tend to be charged so you can access higher rates of cashback, airmiles or similar. If you’re not getting a superb deal that makes up for the fee then the cards are not worth applying for
  • Be careful! A lot of 0% or low interest credit cards will automatically set your direct debit amount very low each month so that at the end of the interest free period you end up with a large outstanding balance
  • If you don’t make the minimum monthly repayment then you may lose your deal
 
 

The inside track

  • Buy on cashback sites to make even more back on your purchases 
  • You may need to be a member to get some organisations' credit cards. And, as with the AA credit card, members will generally earn rewards faster

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