Nectar Credit Card from American Express review: good option for big-spending Nectar fans

You now have six months to pocket up to £125 worth of Nectar points with this Amex credit card, but it's still really only suitable for heavy spenders.

Everyone loves to get something for nothing, which is why rewards credit cards are a really popular option among savvy spenders.

The idea is really simple. Every time you spend on your card, you get some sort of reward back and then clear your debt immediately.

Perks may be in the form of cashback, where you get a percentage of the money you spend back in cash. Alternatively, there are a host of rewards schemes, which deliver loyalty points when you use the card.

These come in a host of different forms, from those that reward you with airmiles which you can use to cut the cost of next year’s holiday to loyalty schemes like Nectar and Clubcard. You can learn more about the different types in our reward cards roundup.

If you’re a Nectar fan, then one card that’s well worth considering is the Nectar Credit Card from American Express.

What do you get with the Nectar Credit Card?

The Nectar Credit Card rewards shoppers with Nectar points when they spend on the card, irrespective of where they spend that money.

You’ll get the best return when you shop with a Nectar partner (and use your Nectar loyalty card), at up to three points for every £1 you spend. This drops to two points for every £1 spent elsewhere.

There’s also a welcome bonus for new cardholders: spend £2,000 in the first six months (this was recently extended from three months to acknowledge our spending has dropped during lockdown) with the card and you’ll get a bonus 20,000 Nectar points.

As each point is worth about 0.5p, that’s about £100, which isn’t to be sniffed at.

If you refer friends to the card, you can bag another 5,000 Nectar points, taking your total points boost to 25,000 (or £125). 

You can also improve your own rate of accruing points with a supplementary card for a family member.

There is an annual fee of £25 to bear in mind, although the fee is waived for the first year.

It’s really important that you clear the balance in full each month too as the representative APR stands at 27.3%.

How does it compare?

The Nectar Credit Card from American Express isn’t the only piece of plastic that awards Nectar points when you use it.

For example, there is also the Sainsbury’s Bank Dual Offer Credit Card. This card rewards you with two Nectar points for every £1 you spend on Sainsbury’s shopping and fuel, and one point for every £5 spent elsewhere.

You can also earn a bonus 750 points each time you spend £35 or more on Sainsbury’s shopping with the card in the first two months, up to a maximum of 10 occasions.

So, time it right and you can pocket 7,500 bonus Nectar points by spending over £350.

Another big selling point of the Sainbury’s card is that it comes with a 20-month 0% period on purchases and balance transfers.

So it’s a good option if you’ve got a large purchase on the way, and need to spread the payments without being charged interest.

It has a representative APR of 22.9%, and what’s more, there’s no annual fee to worry about.

Another alternative to consider is a cashback credit card. While these don’t reward you with loyalty points, the returns on your spending can be comparable to rewards cards like the Nectar Credit Card from American Express.

What’s more, you have more flexibility over how and where you spend those rewards.

One good example is the American Express Platinum Cashback Everyday card. You enjoy 5% cashback on your spending in the first six months (capped at £100), followed by up to 1% cashback if you spend over £5,000 over the year.

There’s no annual fee to pay either, while the representative APR sits at 22.9%.

Our verdict

The Nectar Credit Card from American Express is a strong contender for a certain type of spender.

For example, if you really want to get the most out of the card, you will need to be someone that spends regularly with Nectar card retailers like Sainsbury’s, Argos and Virgin.

That way you can ensure that you get the biggest possible returns from the money you spend each month.

You’ll also need to either be a relatively big spender or have a particularly expensive couple of months on the horizon.

If you want to bag those bonus Nectar points, that averages out at just shy of £335 a month on the card in the first six months – not everyone is going to be able to afford that.

If you are a smaller spender, or only really spend with Sainsbury's of the various Nectar partners, then you may be better off going with the Sainsbury’s card.

It will be well worth sitting down after the first year with the Amex Nectar Card and working out precisely what return you achieved from your spending.

After all, in the second year not only will you not have that juicy welcome bonus to enjoy, but you will also have to start paying the £25 annual fee, which means you need to earn at least 500 points just to break even.

It’s also worth repeating that all rewards cards are only really suitable for borrowers who are able to clear the balance in full each and every month.

Otherwise, the interest charged on the outstanding balance will quickly erode the value of any rewards you manage to build up.

For more tips on boosting your Nectar points haul regardless of which card you use, head this way.