Rewards credit cards explained
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying.
Quick answer
A rewards credit card gives you points, airline miles or vouchers for every pound you spend. The value only adds up if you pay the full balance every month — interest on a carried balance will usually outweigh any rewards.
Look past the headline earn rate to the annual fee, what the points are actually worth when you redeem them, and whether the card is accepted where you shop.
What to compare on a rewards card
| Feature | Why it matters | What to look for |
|---|---|---|
| Earn rate | Sets how quickly rewards build up | Points per £1, and whether some spending earns less or nothing |
| Annual fee | Can wipe out the value of rewards | Fee compared with the value you realistically earn |
| Representative APR | Cost if you don’t clear the balance | Treat as a warning sign, not a target |
| Redemption value | Points are worth different amounts for different rewards | The value per point for the rewards you’d actually use |
| Acceptance | Some networks are taken in fewer places | Whether your usual shops accept the card |
| Foreign transaction fees | Can apply when you spend abroad or online in another currency | Whether non-sterling spending carries a fee |
General features as of 3 October 2026, not a ranking. Check each provider’s summary box for current rates and fees.
Who it’s for
- People who clear their card balance in full every month
- Regular spenders who will actually use the rewards on offer
- Travellers who value airline miles or travel perks
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You sometimes carry a balance — interest will likely cost more than the rewards earn
- You want simple cash back rather than points — see cashback credit cards
- You’re struggling with existing debt — free help is available from charities such as StepChange, Citizens Advice and National Debtline
Full explanation
Rewards cards work well as a payment tool, not a way to borrow. Set up a direct debit for the full balance so you never pay interest, and only spend what you would have spent anyway.
Work out the realistic value. If you spend £800 a month and earn one point per £1, that’s 9,600 points a year. Whether that’s worthwhile depends on what a point is worth to you and on any annual fee.
Applying for credit leaves a mark on your credit file, and lenders look at your history and affordability. Many providers offer an eligibility checker that uses a soft search, which doesn’t affect your credit score. See our credit scores guide.
See also: Credit Score Basics: A Simple Guide for the UK
Section 75 of the Consumer Credit Act can make the card provider jointly liable with the retailer when you pay for a single item costing between £100 and £30,000, even if you only put part of the cost on the card. That protection applies to rewards cards in the same way as any other credit card.
The catch
Rewards cards often charge an annual fee and higher interest rates than plain cards. Points can expire, be devalued or be worth much less when redeemed for some rewards than others. Some card networks are accepted in fewer places, and introductory bonuses usually need a minimum spend within a set time.
FAQs
Are rewards credit cards worth it?
They can be if you clear the balance every month and use the rewards. If you carry a balance, interest usually costs more than the rewards are worth.
Do rewards cards have annual fees?
Many do, though not all. Compare the fee with the value you’re likely to earn in a typical year.
Do reward points expire?
Some schemes expire points after a period of inactivity or on a set date. Check the scheme’s terms.
Will applying for a rewards card affect my credit score?
A full application leaves a hard search on your credit file. Eligibility checkers that use a soft search don’t affect your score.
Do rewards cards come with Section 75 protection?
See Full explanation above.
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