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American Express Cashback and Rewards Credit Cards UK

Before we start, let’s discuss the number one rule of credit cards:

If you can’t pay off your full outstanding balance each and every month, do not read on.

It won’t be worth your while.

However, if you have the ability to set up a direct debit and you currently make your outgoings via cash or a debit card, read on. And do so with enthusiasm and gusto!

Why? Well, because if you are the “average” person in the UK, you could be losing out on over £200 in a year by not using a cashback or rewards credit card for your purchases.

Today, we review some of the best cards on the market for cashback and rewards: American Express.

 

 

What does the average person in the UK spend on their cards?

According to the Guardian data blog (great site by the way), the average annual spend in the UK on debit and credit cards (as per July 2013) was a total of £9,710:

• £6,750 a year on their debit cards
• £2,960 on credit yearly

With so much being spend on debit cards each year, the nation is very likely missing out on many of the advantages that credit cards can provide.

Again, please remember this is subject to the first rule of credit card club.

 

How much could you be losing out on each year?

I’ve performed a comparison of the cashback credit cards and rewards credit cards available today compared to the average amount spend each year on cards of £9,710.

The results are as follows:

 

Card	Explanation	Bonus	Year 1 cashback	Annual fee	Year 1 Net gain	Year 2 Net gain
Platinum Cashback Credit Card	* Ongoing 1.25% cashback every thing you spend	* 5% cashback on up to £2,500 of purchases in your first 3 months * 2.5% cashback on all purchases for one month every year if you spend more than £10,001 in your previous 12 months	£215.13	-£25.00	£190.13	£96.38
Platinum Cashback Everyday Credit Card	* Spend £0 to £3,500 and receive 0.5% cashback on that spend * Spend between £3,500 and £7,500, receive 1% cashback on that spend * Spend over £7,501 and receive 1.25% cashback on that spend	* 5% cashback on up to £2,000 of purchases in your first 3 months	£137.61	£0.00	£137.61	£80.11
British Airways American Express Premium Plus Credit Card	* 1.5 Avios for virtually every £1 you spend* 3 Avios for virtually every £1 you spend direct with British Airways or BA Holidays	* 18,000 Avios welcome points when you spend £3,000 in your first 3 months *Spend £10,000 or more within an anniversary year to earn a complimentary Companion Voucher, valid for 24 months	£371.24	-£150.00	£221.24	£16.04
Nectar Credit Card	* Collect 2 points for every £1 spent everywhere on the Card * Collect up to 4 Nectar points for every full £1 spent at Nectar partners	* Collect 20,000 Nectar bonus points when you spend and charge £2,000 to your account in your first 3 months	£221.38	-£25.00	£196.38	£96.38

 

The table above makes the following assumptions:

 

Card	Assumption
Platinum Cashback Credit Card	You make £2500 purchases in the first 3 months
Platinum Cashback Everyday Credit Card	You make £2000 purchases in the first 3 months
British Airways American Express Premium Plus Credit Card	You spend £3000 in your first 3 months All other points are earned at 1.5 per £1
Nectar Credit Card	You spend £2000 in your first 3 months All other points are earned at 2.5 per £1

 

 

 

And what about you? Yes, you!

Well, if you don’t have a credit card, why don’t you work out your annual spend on your debit cards and then use the spreadsheet attached below to work out how much free cashback or rewards you could be missing out on each year:

American Express CC rewards comparison

 

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