Let’s face it—if you’re spending money anyway, why not get something back for it? That’s where rewards credit cards come in. These nifty financial tools let you earn cashback, points, travel perks, or retail vouchers just for using your card on everyday purchases. And in the UK, the choices are better than ever in 2025.
Whether you’re a frequent flyer, a shopaholic, or someone just trying to make your money work harder, this guide is for you.
How Do Rewards Credit Cards Work?
It’s simple—every time you spend using your card, you earn something back. That “something” could be:
- Cashback: A percentage of your spending returned to you.
- Points: Can be redeemed for gift cards, travel, or merchandise.
- Air Miles: Perfect for frequent travellers.
Each pound you spend earns you a certain amount of value. Some cards offer higher rates for specific categories like groceries, fuel, or travel bookings. The trick? Know your card and use it smartly
Benefits of Best Rewards Credit Card UK
Here’s why people love them:
- Get Paid to Spend: Who doesn’t love cashback on things they’d buy anyway?
- Travel Perks: From airport lounge access to free flights—these cards open the skies for you.
- Exclusive Offers: Pre-sale tickets, dining deals, or even hotel upgrades.
- Credit Score Boost: When used responsibly, these cards can actually improve your credit history.
Top Features to Look for in a Rewards Credit Card
Don’t just grab the shiniest card—look under the hood.
- High Earn Rates: Aim for 1% cashback or 1 point per £1 at minimum.
- Intro Bonuses: Some cards offer £100+ in rewards for spending a set amount in the first few months.
- No/Low Fees: Cards with annual fees should offer big benefits in return.
- Flexible Redemption: Make sure you can actually use your rewards!
Types of Best Rewards Credit Card UK
You’re spoilt for choice. Here’s a quick breakdown:
- Cashback Cards: Simple and direct. Great for everyday spenders.
- Travel Reward Cards: Earn Avios, Virgin points, and more.
- Retail Store Cards: Like Tesco, M&S—perfect if you shop there often.
- Points-Based Cards: Flexible and can be used across different categories.
Top 7 Best Rewards Credit Card UK (2025 Update)
1. American Express Preferred Rewards Gold Card
- Annual Fee: Free for Year 1, £195 thereafter
- Welcome Bonus: 20,000 Membership Rewards Points
- Best For: Frequent travellers and big spenders
- Perks: Travel insurance, lounge access, hotel upgrades
2. Barclaycard Avios Plus
- Annual Fee: £20/month
- Welcome Bonus: 25,000 Avios (if you spend £3,000 in 3 months)
- Best For: British Airways flyers
- Perks: Avios points on all spend, companion voucher annually
3. Virgin Atlantic Reward+ Credit Card
- Annual Fee: £160
- Welcome Bonus: 15,000 Virgin Points
- Best For: Virgin Atlantic regulars
- Perks: Upgrade vouchers, lounge access, extra points on Virgin spend
4. Tesco Bank Clubcard Credit Card
- Annual Fee: £0
- Best For: Regular Tesco shoppers
- Rewards: Clubcard points on all spend, boosted at Tesco stores
5. Santander All in One Credit Card
- Annual Fee: £3/month
- Cashback: 0.5% on all purchases
- Best For: People wanting cashback + no FX fees
- Bonus: 0% interest on purchases for 12 months
6. M&S Bank Shopping Plus Credit Card
- Annual Fee: £0
- Perks: M&S reward points, bonus vouchers
- Best For: M&S regulars
- Offer: 0% on purchases for 18 months
7. NatWest Reward Credit Card
- Annual Fee: £24
- Rewards: 1% on supermarket and bill payments
- Best For: Cashback on recurring payments like utilities
How to Choose the Best Rewards Credit Card for You
It all depends on how you spend.
- Travel a lot? Go for Avios or Virgin Points cards.
- Love cashback? Santander or NatWest could be your best friend.
- Shop at Tesco/M&S? Grab their co-branded cards for extra perks.
And always weigh the fee against the rewards. A high-fee card only makes sense if you’re making the most of its benefits.
Are Rewards Credit Cards Worth It?
Yes—but only if you play the game right.
Pros:
- Free rewards on your spending
- Access to premium perks
- Can improve credit score
Cons:
- Temptation to overspend
- High interest if you carry a balance
- Some cards come with hefty annual fees
Tips to Maximise Your Credit Card Rewards
Here’s how the pros do it:
- Always Pay in Full: Avoid interest and maximise value
- Set Up Direct Debits: No missed payments = no fees
- Use for Everything: From coffee to council tax
- Stack Rewards: Combine with Tesco Clubcard, Nectar, or other loyalty schemes
What to Avoid with Rewards Credit Cards
- Paying Interest: You’ll erase your rewards.
- Overspending: Don’t buy things just to earn points.
- Late Payments: They’ll hurt your credit and cancel your perks.
Credit Score and Eligibility Requirements
Most top rewards cards require a good to excellent credit score (above 700). Don’t have that yet?
- Start with a no-fee card
- Build your history with regular repayments
- Check eligibility using soft search tools
FAQs About Best Rewards Credit Card UK
Q1: Can I have more than one rewards credit card?
Yes! Just make sure you can manage them all responsibly.
Q2: What’s the best rewards card with no annual fee?
Tesco Clubcard and M&S Shopping Plus are excellent options.
Q3: Do rewards points expire?
Some do—check the T&Cs of your card provider.
Q4: Can I transfer points between cards?
Only if they’re from the same rewards program (e.g., Amex MR points).
Q5: Will applying for a card hurt my credit score?
A single application may cause a temporary dip, but long-term good usage helps your score grow.
Conclusion
There’s no one-size-fits-all when it comes to the best rewards credit card UK. It boils down to your lifestyle, spending habits, and whether you’re a savvy spender or a forgetful one. If you pay your balance in full and spend consistently, these cards can offer real value.
From cashback to flights, free hotel stays to shopping perks—rewards credit cards let you turn your spending into something exciting. So choose wisely, use responsibly, and watch those rewards pile up.
