Most profitable credit cards in the UK – Best Points and Cashback Cards – that will be the topic of today’s article.
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Introduction
Learn about the most profitable credit cards in the UK alongside insights from Premier Trust.
In one of my previous articles, I mentioned the best travel credit cards available in the UK.
Today, I will focus on the best rewards credit cards available in the UK, which primarily focuses on cashback cards and points cards.
You should remember that I am in no way affiliated with any of these credit cards and neither do I endorse them.
I am providing the information regarding what I thought was the best, and this information is to be taken for reference purposes only.
This is so that you can compare some of the best available credit cards in the UK and select the one that seems profitable to you.
By the time of writing this article, all the information provided is accurate and up-to-date.
However, aspects such as APRs and fees are subject to changes when it comes to credit cards.
Therefore, it is wise to check with the provider regarding the details that I’ve mentioned in the article.
If you want information related to the best travel rewards credit cards in the UK, then click on the link provided below.
Best Travel Credit Cards in the UK
Before we get to the topic for today, which is about the most profitable credit cards in the UK, I will cover some general topics.
Let us begin.
General information
Credit cards play a key role in our lives, especially when it comes to financial aspects.
If an individual is able to use their credit card(s) properly, then he or she can be able to get a lot of benefits from them.
However, not using credit cards properly might lead to financial difficulties such as an impact on the credit score.
Maintaining a credit score is very important for a person to become eligible for the loans or credit cards they want to get.
If you want more information on credit score and how to improve it, then click here.
Furthermore, cashback credit cards usually offer cashback rewards to the individuals who make use of them.
Mostly, rewards credit cards like cashback cards usually offer a welcome bonus, which happens to be very lucrative.
Points credit cards offer rewards in the form of points, which can be redeemed for other rewards.
Usually, points credit cards offer higher points in the selected category of spending with certain terms and conditions.
You should always remember that just because a credit offers a great signup bonus or rewards, doesn’t mean you should get one.
You should always make sure that the credit card you are getting is going to be helpful to your financial situation.
At the same time, the rewards or welcome bonus should be easy to obtain and shouldn’t make you go out of regular purchases for rewards.
Adding to that, you should also check the fees and APRs involved in a credit card so that you don’t pay more than what you get.
Having discussed all the important aspects to be taken into consideration, let us now have a look at some of the profitable credit cards in the UK.
Most profitable credit cards
As I said earlier, most of these credit cards are going to offer cashback rewards to cardholders.
If you ask me why cashback is considered profitable in my opinion, I’ll say that you can use the cashback for other purchases.
Now, let us have a look at the profitable credit cards available in the UK along with the main features related to them.
American Express Platinum Cashback Everyday credit card
Representative APR: 28.1% variable APR
Purchase Rate: 28.1% variable
Annual Fees: £0
Welcome Offer: Individuals are allowed to get a 5% cashback on their purchases with a cashback limit of up to £100 within the first three months.
Rewards: Following the signup bonus, individuals are able to get cashback rewards on the amount spent within the card membership year.
For an amount spent up to £10,000 using the card, individuals are able to get 0.5% cashback.
For an amount spent more than £10,000 using the card, individuals are able to get a cashback of 1%.
Additionally, cardholders are also allowed to get a referral bonus of £20 upon inviting a friend.
This bonus is only offered upon successful approval of the invited candidate and the maximum bonus that can be earned is £150.
American Express Platinum Cashback Credit Card
Representative APR: 33.6% variable APR
Purchase Rate: 28.1% variable
Annual Fees: £25
Welcome Offer: Individuals are allowed to get a 5% cashback on their purchases with a cashback limit of up to £125 within the first three months.
Rewards: Following the signup bonus, individuals are able to get cashback rewards on the amount spent within the card membership year.
For an amount spent up to £10,000 using the card, individuals are able to get 0.75% cashback.
For an amount spent more than £10,000 using the card, individuals are able to get a cashback of 1.25%.
Additionally, cardholders are also allowed to get a referral bonus of £30 upon inviting a friend.
This bonus is only offered upon successful approval of the invited candidate and the maximum bonus that can be earned is £150.
American Express Nectar credit card
Representative APR: 33.6% variable APR
Purchase Rate: 28.1% variable
Annual Fees: £25, this comes with an intro offer of £0 in the first year of card membership.
Welcome Offer: Individuals can get 20,000 bonus Nectar points upon spending £2,000 within the first three months.
It is said that 200 Nectar points are equivalent to £1, which means the bonus points are equivalent to £100.
The Nectar points can be used at Sainsbury’s, Nue Cinemas, Argos, and Nectar.com.
Rewards: Individuals are able to get 3X Nectar points per £1 upon spending at Nectar partners.
Individuals are also able to bet 2X Nectar points per £1 on all other purchases.
There is a referral bonus of 5,000 points upon inviting a friend, which has a maximum limit of 90,000 points per year.
American Express Preferred Rewards Gold credit card
Representative APR: 71.5% variable APR
Purchase Rate: 28.1% variable
Annual Fees: £160, this comes with an intro offer of £0 for the first year of card membership.
Welcome Offer: Individuals are allowed to get 20,000 membership Rewards points upon spending £3,000.
This amount has to be spent with the credit card issued and should be spent within the first three months of card membership.
The membership rewards points are worth £80 to £600 per every 20,000 points depending on where you redeem them.
Rewards: For every £1 spent at American Express Travel, you can get 3X Membership Rewards points.
For all the purchases made directly with airlines, you get 2X Membership Rewards Points.
For all other purchases, you get 1X Membership Rewards Points.
Upon inviting a friend, you get 9,000 Membership Rewards Points when the invited candidate is approved.
There is a maximum limit for earning the referral bonus, which is capped at 90,000 Membership Rewards Points per year.
Business Platinum Card from American Express
Annual Fees: £650
Welcome Offer: Individuals are allowed to get 40,000 membership Rewards points upon spending £6,000.
This amount has to be spent with the credit card issued and should be spent within the first three months of card membership.
The membership rewards points are worth £80 to £600 per every 20,000 points depending on where you redeem them.
Rewards: With this business credit card, you will be offered a 54-day repayment period for purchases.
1X Rewards Points per £1 spent on all purchases, which becomes 2X Rewards Points per £1 when you spend more than £10,000 in one month.
Upon making transactions at American Express Travel Online, you will also get a £200 annual travel credit.
Note: This credit card comes with a high annual fee, and therefore, it is wise to think twice before getting this card.
Barclaycard Rewards Card
Representative APR: 25.9% variable APR
Purchase Rate: 25.9% variable
Annual Fees: £0
Rewards: Individuals get 0.25% cashback on their everyday purchases, which is credited to their statement annually.
Using this card, you can withdraw cash from international ATMs or make purchases without additional charges.
This card also offers protection on purchases that are made for an amount of more than £100.
Additionally, you get five months of free subscription to Apple TV+, Apple Music, Apple Fitness+, Apple News+, and Apple Arcade (only in the UK).
M&S Credit Card Shopping Plus Offer
Representative APR: 23.9% variable APR
Purchase Rate: 23.9% variable
Annual Fees: £0
Rewards: There is an introductory APR of 0% for 21 months, which is applicable at every place where Mastercard is accepted.
There is a 0% introductory offer on balance transfers for a period of 18 months when the transfers are made within the first three months.
Every time you shop at Marks and Spencer each £1 spent would be converted into 1 rewards point.
On all other purchases you make using this card, each £5 would be converted into 1 rewards point.
Cardholders who are also subscribed to the M&S Club Rewards program get additional benefits like 3 rewards points per £1 at M&S.
There is a 55-day interest-free period when individuals pay off their credit card balances in full each time.
Additional cards can be acquired, which would have the same benefits and the ability to earn M&S points.
Usually, the M&S rewards points are worth £2 per every 200 points, which can be used in-store or online.
Sainsbury Nectar Credit Card
Representative APR: 22.9% variable APR
Purchase Rate: 22.95% variable
Annual Fees: £0
Welcome Offer: 8,000 bonus Nectar points are offered upon spending £400 or more within the first 2 months of account opening.
To become eligible for this, the individuals should spend at Sainsbury’s, Argos, Habitat, or Tu Clothing.
Rewards: There is a 0% interest rate on the balance transfers for a period of up to 6 months. This may vary from person to person and some individuals might only get 3 months of validity for this intro offer.
There is also a 0% interest rate on purchases for a period of up to 6 months. This may vary from person to person and some individuals might only get 3 months of validity for this intro offer.
To become eligible for the promotional rates, the balances must be paid on time and the cardholder is required to stay within their credit limit.
For every £2 spent, individuals get up to 3 points, where the spending should be done at Sainsbury’s, Argos, Habitat, or Tu Clothing.
One point per every £5 spent on all other purchases using this card. It is said that 200 Nectar points are equivalent to £1, which means the bonus points are equivalent to £100.
The Nectar points can be used at Sainsbury’s, Nue Cinemas, Argos, and Nectar.com.
Santander All in One Credit Card
Representative APR: 27.7% variable APR
Purchase Rate: 21.9% variable
Annual Fees: £36, which is a monthly fee of £3.
Rewards: There is an introductory offer of 0% for the first 15 months on purchases made using this card.
There is an introductory offer of 0% for the first 15 months on the balance transfer made using this card, especially with no balance transfer fee.
There are no foreign exchange fees on all purchases made abroad.
Finally, there is 0.5% cashback on all purchases made with the help of the Santander All in One credit card.
HSBC Rewards Credit Card
Representative APR: 23.9% variable APR
Purchase Rate: 23.9% variable
Annual Fees: £0
Welcome Bonus: When you make the first transaction using this card, you get a 2,500 bonus worth £25.
An additional 2,500 points are offered when you make purchases worth £10,000 for the first five years.
Rewards: Individuals with this card can earn up to 10 points for every £1 spent at selected retailers.
For purchases made elsewhere, you get 1 point for every £5 spent.
These points can be redeemed through MasterCard Pay with Rewards, where you can spend your points like cash.
ASDA Money Select
Representative APR: 34.9% variable APR
Annual Fees: £0
Welcome Bonus: When you open an account before 28 February 2023 and spend at least £5 before the first 60 days of card membership, you get £20 in Asda pounds.
Rewards: Individuals with this card can get 1% back in Asda Pounds, when they spend at Asda stores, Asda.com, George.com, Asda products and services, and fuel or other purchases at Asda petrol stations.
For the money spent elsewhere using this card, you get 0.3% back in Asda pounds.
Asda Pounds can be converted into vouchers, which can be spent in-store or online.
John Lewis and Waitrose Partnership Card
Representative APR: 21.94% variable APR
Purchase Rate: 21.94% variable
Welcome Bonus: You get 3.75% in points on spending with John Lewis and Waitrose for the first three months.
Generally, the usual points earn rate at John Lewis and Waitrose is 1.25%.
Rewards: For every £4 you spend, you get 5 points when you spend at John Lewis and Waitrose.
Everywhere else, you get 1 point for every £4 spent.
These points would be converted into a £5 voucher for every 500 points collected and the vouchers can be used for shopping at John Lewis and Waitrose.
An introductory offer of 0% interest rate on the purchases for the first six months of opening an account.
Tesco All Round Credit Card
Representative APR: 22.9% variable APR
Purchase Rate: 22.9% variable
Rewards: Individuals get a 0% interest rate on purchases for a period of 12 months from getting the card.
Individuals get a 0% interest rate on balance transfers for 12 months from getting the card with a 1.99% fee.
Individuals get a 0% interest rate on money transfers for a period of 12 months from getting the card with a 3.99% fee.
For every £4 spent at Tesco, you get 4 points with a Clubcard alone and for every £4 you spend for Tesco fuel, you get 2 points with a Clubcard alone.
These points can be redeemed for vouchers, where 100 points are equal to £1. The vouchers can be used for groceries and fuel at Tesco, Tesco petrol stations, and Esso sites.
The vouchers are worth three times their value when redeemed with Tesco Reward Partners.
Depending on your situation, you may get the 0% rate for 12 months, 10 months, or 9 months, and to keep the 0% rate, you must be able to pay on time.
Disclaimer:
Kindly note that the rates have been provided on the basis of an assumed credit limit of £1,200, which applies to all the cards listed above.
Bottom Line
By the time of writing this article, these cards were deemed the best rewards credit cards in the UK.
It is possible for you to find some other cards that may seem more lucrative depending on your spending.
You should always remember that getting a credit card just because it offers rewards is not a good idea.
Credit card is a crucial tool for everyone to deal with their financial situation and manage their expenses.
Never spend anything that you wouldn’t normally spend just so that you can become eligible for the signup bonuses or rewards.
Some people might find these cards advantageous, whereas, for others, they might not be suitable.
Always try to figure out whether or not the credit card you get is going to be helpful for your situation.
Most of the rewards or signup bonuses would expire when you are not able to repay the dues on time.
Therefore, to keep all the rewards active, you should always pay back your balances on time.
Some of the cards mentioned above have a higher annual fee, which may not be good if you are not able to get all the rewards they offer.
Try to go ahead with a credit card that has no annual fee or low annual fees. You should also remember that the APRs also play a major role while selecting a credit card.
Some of the cards listed here do come with an intro offer where you won’t have to pay any interest for a specific period of time.
However, you will be charged a balance transfer fee or money transfer fee on the total amount being transferred.
Some of the cards also have a longer repayment period for you to pay back the balances on your card.
Therefore, try and select a card that suits your needs best and try to utilize it properly to get all the rewards available.
As I said in the beginning, all the information provided in this article is accurate and up to date at the time of writing this.
APRs are subject to change regularly, and therefore, it is wise to check all the details again before you get any of these cards.
Once again, I do not endorse any of these cards and neither am I affiliated with them. This article is provided as a reference so that you have a look at the list of the best rewards cards available in the UK.
That being said, I strongly hope that the information provided in this article was helpful to you.
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