Seven credit cards that really pay you for your shopping

For shoppers looking for ways to increase their cash, the reward credit card has long been touted as a quick win.

However, with Sainsbury’s Bank reducing the points offer from November, are these cards still worth the effort?

The answer will likely be “yes” if you are willing to use it for all your daily expenses.

But there are pitfalls to watch out for—the biggest being fees of up to 104 percent in April if you don’t pay the debt in full each month, wiping out any potential gains.

Here, we’ve looked at the best cards for households spending £1,000 a month…

Best for… cash in your pocket

For those only interested in cash rewards, the Amex Platinum Cashback Everyday Credit Card offers a healthy welcome bonus of 5% cashback for the first three months, worth up to £100.

After the introductory deal ends, you’ll earn 0.5 per cent cashback on spending up to £10,000 per year, and 1 per cent on top of that.

You will need to spend a minimum of £3,000 per annum to earn any cashback. Putting £1,000 a month on the card for a year would get you a total of £160.

The Amex Platinum Cashback Credit Card works best if you spend over £10,000 per year.

It comes with a 5 per cent bonus offer – up to a maximum of £125 – for the first three months, 0.75 per cent higher cashback rates up to £10,000, and 1.25 per cent above that.

Cashback is paid annually. The annual fee is £25 but those who put £1,000 a month into the card will get £206.25 in rewards.

Best for… points to spend in store

Amex Preferred Rewards Gold offers an additional 20,000 Membership Points when you spend £3,000 or more in the first three months.

This is in addition to a basic profit rate of 1 pip for every £1 spent (excluding certain transactions such as foreign exchange purchases).

After spending £1,000 per month for a year, you’ll have a total of 32,000 points including welcome bonus.

From 12 October, you can also get 5,000 bonus points for spending £10,000 in your year of membership.

The benefit of Amex Points is that they are very versatile – you can redeem them at High Street shops, airlines and hotels.

Around 30,000 points can be exchanged for gift cards worth around £150 at Currys and Selfridges or you can use them to pay for £135 of purchases on Amazon.

You get more value for your points by exchanging them with Amex’s travel partners, including BA, Virgin and Eurostar.

You can earn up to 33,000 rewards points like a night at a luxury Marriott Bonvoy hotel or an economy return flight to Los Angeles with Virgin Atlantic.

To trade your Amex points for flights or vacations, you’ll need to convert them into points on a different scheme, such as Avios, Virgin Atlantic Flying Club, or Hilton Honors.

There are other benefits too, such as £5 off Deliveroo purchases twice a month, plus two free visits to the Amex airport lounge (four from 12 October).

The card is free for the first year. After that, there’s an annual fee of £140, but you can cancel the card before you start.

Members can keep their points after cancellation if they convert them into another points currency, such as Avios.

Best for…

The fee-free British Airways American Express credit card is a good option for collecting Avios, as well as getting a free flight for a family member or friend.

You earn 1 point for every £1 spent, plus a £5,000 bonus if you spend £1,000 in the first three months after signing up.

Spending £1,000 a month for a year will earn you 17,000 Avios points – roughly at the 18,500 threshold for a £1 return flight to a European destination.

On top of your Avios, you get a free companion voucher for spending £12,000 per year, which you can use to take a relative or friend with you on the same flight in Economy.

Or if you’re traveling on your own, you can instead opt for a 50% discount on the Avios you pay for your flight.

You will still incur taxes and carrier fees on flights.

More serious Avios collectors who spend big per month should consider the Premium Plus card, which gives you 1.5 Avios for every £1 spent.

You’ll also get a free companion voucher when you spend £10,000 per annum, and your partner or friend can travel in the same cabin if you book a Premium or Business Class seat.

This is an annual fee of £250 and interest on purchases is charged at 26 per cent if you don’t clear your entire balance each month.

The card’s annual interest rate — an industry-wide measure designed to help customers compare the cost of credit, and which takes into account interest charges and fees — is 103.7 percent.

Best for… your weekly shop

Loyal Tesco and Sainsbury’s shoppers can get paid shopping using the store’s credit cards.

With a Tesco Bank credit card, you can earn five points for every £4 spent at Tesco, and one point for every £8 spent elsewhere. Spending £1,000 a month outside Tesco will earn you up to 125 Clubcard points, worth £1.25, or £15 a year.

Clubcard points can be redeemed for up to three times their value with their Reward partners worth £45.

Sainsbury’s Bank credit card is about to change its points system to give 1 point for every £2 spent on Sainsbury’s, Argos, Habitat and Tu clothing – in addition to the usual points awarded for using a Nectar card.

Don’t be tempted to overspend in order to get rewards. But add a family member or partner to your account to earn cashback faster.

moneymail@dailymail.co.uk