Credit cards in the UK come with a wide range of perks and benefits, making them more than just a payment tool. Whether you’re looking for rewards, travel benefits, cashback, or insurance coverage, the right credit card can enhance your lifestyle and save you money. But with so many options available, it can be difficult to determine which provider offers the best deals. This article compares the credit card perks offered by some of the top UK providers to help you make an informed choice.
1. Types of Credit Card Perks
Credit card perks vary depending on the type of card you choose. Here are some of the most common perks offered by UK credit card providers:
Cashback
Cashback cards give you a percentage of your spending back as cash or a credit to your account. This can be a great option for people who want to earn rewards without having to think about complicated point systems.
Reward Points
Reward cards allow you to earn points for every pound spent, which can be redeemed for a variety of rewards such as travel, merchandise, or gift vouchers.
Travel Benefits
Many credit cards offer travel-related perks, such as travel insurance, airport lounge access, and the ability to earn points or miles with airlines. These cards are perfect for frequent travelers.
Purchase Protection and Insurance
Some credit cards come with purchase protection, extended warranties, and travel insurance, which provide peace of mind when making big-ticket purchases or traveling abroad.
0% Introductory Offers
Many credit cards offer 0% interest on purchases or balance transfers for an introductory period, which can help you save money on large purchases or consolidate existing debt.
2. Best UK Credit Cards for Cashback
American Express Platinum Cashback Credit Card
- Cashback Rate: Earn 5% cashback on your first £2,000 of purchases in the first three months, then 1.25% on all other spending.
- Annual Fee: £25
- Pros: High initial cashback rate, and cashback is credited to your account.
- Cons: Only available to those with a good to excellent credit score.
Barclaycard Cashback Credit Card
- Cashback Rate: 0.25% cashback on all spending, increasing to 0.5% after you’ve spent £3,000 in a year.
- Annual Fee: None
- Pros: No annual fee, simple cashback structure, and a straightforward offering.
- Cons: Lower cashback rate compared to other cards, especially for those who don’t meet spending thresholds.
Santander All in One Credit Card
- Cashback Rate: 0.5% cashback on all purchases, with up to 15% cashback on selected retailers.
- Annual Fee: £3 per month
- Pros: Good cashback rate for a low annual fee, plus enhanced cashback at partner retailers.
- Cons: Monthly fee may make it less attractive if you don’t spend much.
3. Best UK Credit Cards for Travel Perks
Barclaycard Avios Credit Card
- Travel Perks: Earn 1 Avios point per £1 spent and double the points on British Airways purchases.
- Annual Fee: £24
- Pros: Great for frequent flyers, especially those who use British Airways.
- Cons: Points are only valuable for those interested in flying or traveling with partner airlines.
American Express Preferred Rewards Gold Credit Card
- Travel Perks: Earn 2 Membership Rewards points per £1 spent on travel and 1 point on all other purchases. Enjoy airport lounge access and travel insurance.
- Annual Fee: £140 (waived for the first year)
- Pros: Great for travelers who want to earn rewards and receive travel-related benefits like lounge access.
- Cons: High annual fee after the first year, but the benefits may justify the cost for frequent travelers.
Chase Sapphire Credit Card
- Travel Perks: Earn 1.25 points per £1 spent on all purchases and 2 points for travel and dining.
- Annual Fee: None
- Pros: Flexible reward points system, great for those who travel frequently.
- Cons: Limited additional perks compared to other premium travel cards.
4. Best UK Credit Cards for Reward Points
Tesco Clubcard Credit Card
- Reward Points: Earn 1 point for every £4 spent, and 1 point for every £1 spent at Tesco stores.
- Annual Fee: None
- Pros: Great for frequent Tesco shoppers with additional rewards when using the Clubcard.
- Cons: The points-to-value ratio isn’t as competitive for those who don’t shop at Tesco regularly.
Sainsbury’s Bank Nectar Credit Card
- Reward Points: Earn 1 Nectar point for every £1 spent on the card, and 2 points for every £1 spent at Sainsbury’s.
- Annual Fee: None
- Pros: Excellent for shoppers who use Sainsbury’s and its partners, offering rewards that can be spent at a variety of retailers.
- Cons: Limited to Nectar points, which may not appeal to those looking for broader reward options.
Virgin Atlantic Reward Credit Card
- Reward Points: Earn 0.75 Flying Club miles per £1 spent on all purchases, with 1.5 miles for every £1 spent on Virgin Atlantic purchases.
- Annual Fee: £160
- Pros: Great for frequent Virgin Atlantic flyers, offering generous miles that can be redeemed for flights.
- Cons: High annual fee and limited to Virgin Atlantic for maximum reward redemption.
5. Best UK Credit Cards for 0% Introductory Offers
MBNA 0% Balance Transfer Credit Card
- Intro Offer: 0% interest on balance transfers for 24 months (a 3% transfer fee applies).
- Annual Fee: None
- Pros: Long balance transfer period with no interest, great for paying off existing credit card debt.
- Cons: Balance transfer fee can add up depending on the amount transferred.
Tesco Bank Purchases Credit Card
- Intro Offer: 0% interest on purchases for 20 months.
- Annual Fee: None
- Pros: Ideal for those looking to make large purchases and pay them off interest-free over time.
- Cons: High-interest rates after the introductory period ends.
6. Conclusion
When choosing a credit card in the UK, the best deal depends on your spending habits and priorities. For cashback, the American Express Platinum Cashback card stands out with its high initial rewards. If travel is your priority, the American Express Preferred Rewards Gold offers valuable perks for frequent flyers. For those who prefer a simple rewards program, the Tesco Clubcard or Sainsbury’s Bank Nectar credit cards offer easy-to-earn points.
Ultimately, comparing the perks, annual fees, and introductory offers is key to finding the best deal for you. With the right credit card, you can enjoy a range of benefits while managing your finances effectively.
