A reward credit card gives you points when you spend on your credit card. These can then be redeemed against goods and services, such as:
Shopping vouchers
Discounts
Flights or hotels
Days out
Special offers
Some reward credit cards offer specific rewards such as air miles, discount vouchers and cashback.
You may have to spend a minimum amount on your reward credit card each month, in order to qualify for rewards or perks.
It's best not to use these types of reward credit cards for borrowing or withdrawing cash, as the interest rates on them can be quite high.
Rewards cards take advantage of something called the "interchange fee".
This is what credit card providers charge retailers for sorting out the payment process each time you use them.
With a rewards card, the bank issuing the card tends to charge retailers a higher interchange fee to fund the rewards it gives you. The trade off for the retailer is that you might end up spending more with a rewards card than you would with another type of card so you can earn more points.
But rather than just giving you back a percentage of the money you spend, some credit card companies secure deals with travel companies, supermarkets and more to generate bigger rewards for you.
Each time you spend, you can earn something back in reward points as a reward for your loyalty - this can be cash or special deals
If you pay off your balance in full each month you get the reward card perks without paying any interest
Some of the best credit card rewards allow you to exchange points for store discounts, gift vouchers, hotel stays and even almost free flights
If you have existing credit card debt, or are paying interest on one or more credit cards, reward cards are probably not for you. You could consider balance transfer credit cards instead.
Rewards credit cards are typically meant for those who have good incomes, and who can use their credit card for everyday purchases and pay off the balance in full each month. That's because rewards cards usually have high interest rates and often even charge an annual fee. So if you tend to carry a balance or struggle with overspending, the allure of rewards might lead to accumulating high-interest debt, and eventually any rewards you earn might be worth less than the interest you owe if you don’t clear the balance each month.
Ultimately, a rewards credit card can be advantageous if used wisely. It can provide financial perks and additional benefits, such as travel insurance or purchase protection. However, it's essential to evaluate your financial habits and goals before committing to a rewards card to ensure it aligns with your needs and helps you achieve your objectives without risking financial instability.
An air miles or airline credit card is a reward credit card for travel.
Depending on which program the card is affiliated with, it might allow you to collect British Airways Avios points or Virgin Atlantic Flying Club miles through your everyday spending.
You can exchange Avios or other points for spending towards travel costs including flights, seat upgrades, hotels and car rental.
Instead of earning points, a cashback credit card allows you to earn back a percentage of the money you spend.
The money you earn will be put back into your account either monthly or annually.
Unless you pay off the credit card amount each month, the cost of interest might outweigh the rewards.
Supermarket credit cards have been a staple of the rewards credit card market. These are cards offered by one of the large supermarkets or department staores, most notably Sainsbury's or Tesco and M&S or John Lewis. These cards offer more points when spent in the retailer's own shops, but you can also earn points by spending at other retailers.
Store cards are a type of credit card that are issued by a retailer and can only be used to make purchases in that particular store. More recently, however, a number of store cards have disappeared from the market. This has predominantly been a result of a declining high street, shops going out of business and many being taken over by e-retailers.
An air miles or airline credit card is a reward credit card for travel.
Depending on which program the card is affiliated with, it might allow you to collect British Airways Avios points or Virgin Atlantic Flying Club miles through your everyday spending.
You can exchange Avios or other points for spending towards travel costs including flights, seat upgrades, hotels and car rental.
Instead of earning points, a cashback credit card allows you to earn back a percentage of the money you spend.
The money you earn will be put back into your account either monthly or annually.
Unless you pay off the credit card amount each month, the cost of interest might outweigh the rewards.
Supermarket credit cards have been a staple of the rewards credit card market. These are cards offered by one of the large supermarkets or department staores, most notably Sainsbury's or Tesco and M&S or John Lewis. These cards offer more points when spent in the retailer's own shops, but you can also earn points by spending at other retailers.
Store cards are a type of credit card that are issued by a retailer and can only be used to make purchases in that particular store. More recently, however, a number of store cards have disappeared from the market. This has predominantly been a result of a declining high street, shops going out of business and many being taken over by e-retailers.
The card you choose will depend on your needs and spending habits.
Some cards offer you the chance to earn points that you can spend with a specific retailer. Others provide vouchers that you can spend across a variety of retailers.
For example, some reward cards give you the chance to collect Nectar points, which can be put towards anything from restaurant bills to hotels.
Reward cards are often competitive in other areas, allowing you to use them for different purposes. Even if you’re not a regular shopper, some reward cards could be worth considering for the added benefits on offer.
For example, as well as points, some cards might offer long 0% interest periods on balance transfers, or long 0% interest periods on purchases, or even both. Some of these interest-free periods can be as long as on other types of credit card.
What makes the best reward credit card for you will vary depending on what rewards you'll use most. Think about how much you will use a reward credit card, where you will use it, and what benefits or rewards would be most valuable for you.
If you do most of your shopping with a particular retailer it might be a good idea to get a reward card from that retailer (if it offers one). You can earn points that you'll be able to spend in its shops. But if you do your shopping in a number of supermarkets or retailers, you might not be getting the best deal. Even with a really attractive points deal, you'll be tied to shopping in one place when it comes to spending your rewards.
Premium cards are elite reward cards that offer exclusive rewards, like access to airport lounges or a concierge service, in exchange for a fee.
There is usually a minimum income level that you have to meet in order to be approved for a premium reward card. There is also often a minimum monthly or annual spend to qualify for the rewards.
Some top-end reward credit cards also charge an annual fee, so you need to weigh up the benefits and costs.
Find out more about premium cards
There is no limit to the number of reward credit cards you can have, although in terms of managing your personal finances you don’t want too many cards to have to pay off each month.
While different credit cards give different rewards, it’s better to pick the right reward credit card for you, rather than having lots of credit cards. This is because you may have the temptation to overspend, and because lenders may be wary of you if you have applied for a lot of potential credit.
Having lots of credit cards, whether you use them or not, can affect your credit rating, and whether you are approved for credit such as a loan, mortgage, or mobile phone or broadband contract. Find out more about how to check your credit rating.
When we use the term ‘most popular or ‘popularity’ on Uswitch in reference to credit cards, these cards are ranked by the number of clicks they have received on the site in the past 30 days.
The most clicked on cards are at the top, with the least at the bottom. This reflects how popular they are with visitors to Uswitch.com. Consequently, this is a good table to look at if you’re interested in seeing which cards most people think are worth getting.
We compare over 100 credit cards from all of the major banks and credit card providers.
However, we do not compare all the credit cards that are available in the UK.
This is because some credit card providers have offers that are only available exclusively through their own website or branch, or through other comparison websites - in the same way some credit cards are exclusively available through Uswitch.
There are also many credit cards that are only available to people in member organisations and clubs.
Our best deals on a range of credit card categories by use:
Our top credit cards by type, most popular deals and business cards
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