Good news for borrowers looking for a credit card that will help them collect Nectar points; the American Express Nectar Credit Card is now fee free for the first year.
Everything else still stands: 20,000 welcome Nectar points (so long as you spend £2,000 within the first three months), online account management and two points for virtually every pound spent anywhere on your Nectar card.
Just bear in mind that from year two, the £25 fee will be charged again.
What can I get with my points?
Broadly speaking, points translate into cheaper days out, fuel and purchases for yourself and your loved ones.
But how much are they actually worth? 500 Nectar points is worth £2.50 in vouchers to spend with Nectar partners, so that 20,000 welcome bonus is worth £100. However, certain partners offer boosted deals, meaning you get even more for your points. For example, between 24th and 28th September you can convert 500 points into a £5 voucher to spend at Pizza Express.
A good deal?
There are plenty of other rewards cards out there, offering everything from money off motoring purchases to Tesco Clubcard points. As such, it's not always easy to compare them. The table below breaks down what's on offer from some of the best rewards cards around:
|
Credit card |
APR |
0% purchase period |
Annual fee |
Perks |
|
25% |
N/A (19.9% variable) |
Free for first year (£25 thereafter) |
20,000 Nectar points welcome offer when you spend £2,000 in the first three months Collect up to four Nectar points for every full £1 spent at Nectar partners Two Nectar points for virtually every pound spent elsewhere (even when you use your card abroad) |
|
|
18.9% |
19 months |
N/A |
Five Clubcard points for every £4 spent at Tesco, one point for every £4 spent elsewhere |
|
|
17.9% |
6 months |
N/A |
100 bonus points, worth £100 off your next Vauxhall, when you take out the card. Double Rewards Points for the first three months or on the first £3,000 spent, whichever comes first Redeem Rewards Points for up to £1,500 off a new Vauxhall at any participating restaurant Vauxhall retailer Vauxhall Rewards Points worth 3% on purchases |
|
| AA Rewards Credit Card | 16.9% | 10 months | N/A |
Earn one point for every £1 spent on motoring and fuel purchases, or £2 spent everywhere else. 4,000 points can be converted into £10 cashback or vouchers with partners, or £20 off at AA. |
|
16.9% |
15 months |
N/A |
Collect one M&S point for every £1 spent in M&S and every £2 spent elsewhere. 100 points equates to £1 in M&S vouchers. Bonus 500 points when you take out the card |
|
|
John Lewis/Waitrose Partnership Card |
16.9% |
6 months |
N/A |
Earn one point for every £1 you spend at John Lewis and Waitrose or £2 elsewhere Every 500 points earned is worth £5 in vouchers |
Alternatively, you could cut the cost of next year's holiday with an air miles credit card. Read The best air mile credit cards. And don't forget, you could opt for cold, hard cash with a cashback credit card. Read The best cashback credit cards for more.
Finally, if you don't want a credit card, there's the American Express Preferred Rewards charge card. As it's a charge card, you MUST pay the balance off in full each month. But it offers signficant rewards, and its usual £125 annual fee is being waived for the first year. Read Get the American Express Preferred Rewards Gold Card fee free for a year.
The most important thing to remember before taking out a credit card is to make sure that you can keep up with the monthly payments. Otherwise, any benefits you receive are going to be undone by interest.
Compare credit card deals with lovemoney.com