New customers can now earn more Nectar points with an American Express credit card. Here's how the offer works.
The American Express Nectar Credit Card has improved its introductory offer for new customers.
It's now offering 20,000 bonus Nectar points, equivalent to £100, as long as at least £2,000 is spent in the first three months after opening the card.
The deal is open until 6th November and for Nectar collectors who use their credit card regularly it’s a potentially easy way to earn £100 in points fast.
Bonus Nectar points
Nectar points can be redeemed at shops included in the Nectar scheme such as Sainsbury’s, Homebase, BP, Boden and Sky or with travel partners including easyJet and Eurostar.
Card holders will also be rewarded with two points per £1 spend on the credit card whereever they use it. But although it’s worthwhile using if you regularly shop in places connected with Nectar, be warned that the card has a high APR of 25% and an annual fee of £25.
Double the Nectar points
You can increase the number of points you earn by using your standard Nectar card alongside the credit card. For example, if you bought something for £1 and used the credit card you’d receive two points and if you also showed your Nectar loyalty card you’d receive four points.
This is another easy way to boost your Nectar points. Along with shopping in Nectar retailers, there are also more than 500 eshops where you can earn points.
[SPOTLIGHT]There are often special offers listed on the Nectar website. For example, it currently has a deal with Hertz whereby customers will pick up six points per £1 spent on car rentals.
The alternatives
Reward credit cards are only useful if you’re using the benefits on offer. Therefore if you already shop at retailers within the Nectar group, the American Express Nectar card is a simple way to increase your Nectar balance.
But there are a lot of other reward cards to choose from. Barclaycard, for example, has a Freedom Rewards Purchase Visa card which pays out double points in UK supermarkets, petrol stations and through Transport for London (TfL). It then pays out triple points on other retailers such as Bella Italia, Café Rouge and Currys.
The Lloyds Bank Duo Avios is another option suitable for people who collect and use Avios points. You get two cards: an American Express and a MasterCard. You earn one Avios per £1 spent on the American Express and one Avios per £5 spent on the MasterCard.
Our comparison tables show a fuller picture of the market but here I’ve listed five of the best reward cards.
|
Card |
Rewards |
APR |
|
Double Freedom points in UK supermarkets, petrol stations and on Transport for London (TfL). Triple points at selected Freedom partners such as; BHS, Bella Italia, Café Rouge, Currys PC World, Goldsmiths and Strada (terms and conditions apply). |
18.9% |
|
|
One Avios per £1 spent on the Lloyds TSB Duo Avios American Express Card and one Avios per £5 spent on the Lloyds TSB Duo Avios MasterCard. |
17.9% |
|
|
Earn 20,000 Membership Reward Points when you spend £2,000 in the first three months, plus double points on petrol and supermarket purchases in the first year. There's an annual fee of £125, but it's waived in the first year. Note that this is a charge card, not a credit card, so balance must be paid off in full each month. |
N/A |
|
|
One Clubcard point awarded per £4 spent. Five points awarded per £4 spent in Tesco stores and on fuel at Tesco Petrol Filling Stations (excludes Esso Fuel). |
16.9% |
|
|
Earn one point for every £1 spent on card. Points can be redeemed on anything from flights and holidays, shopping vouchers, spa experiences and theatre nights. Customers receive 2,500 bonus points shortly after receiving the card and each year thereafter. |
16.9% |
How to use a reward credit card
A rewards credit card works a little like a cashback card and pays you in points for everything you buy on it. Therefore it will only work if you’ve chosen a card which rewards you with points you’ll actually spend.
These cards tend to have quite high APRs and the best way to use them is to buy everything you would normally buy on your debit card, and then set up a standing order to clear the card each month.
This means you’re not buying more than you normally would but simply using a different payment method and being rewarded for it.
For those people who are already in debt, these cards won’t be suitable. A 0% balance transfer credit card which gives you a breather from hefty interest payments would be a better option.