What is a rewards credit card?

A rewards credit card gives you a little something back every time you spend. Whether it’s your morning coffee or the weekly food shop, you earn points, cashback or perks just for using the card. Over time, those rewards can mean gift vouchers, flights or money off your bill. Handy, right?

Some focus on points you can swap for travel goodies, retail vouchers, or even theatre tickets. Others offer cashback straight into your account or discounts at selected retailers. The key is choosing one that fits your lifestyle: there’s no point collecting airline points if you’re more high street than high-flyer.

Of course, there’s a catch if you don’t play it smart. These cards tend to have higher interest rates, so pay off your balance in full each month or the interest charges could wipe out any rewards you earn. But if you stay on top of repayments, it’s a clever way to get a little something back, just for buying what you’d buy anyway.

Are you eligible for a rewards credit card?

Thinking about getting a rewards credit card? Before you apply, it’s worth knowing what card providers look for. While each lender sets its own rules, there are some common criteria:

  • Age and UK residency: You’ll usually need to be at least 18 and living in the UK.

  • Regular income: A steady income helps show lenders you can repay what you spend.

  • UK bank account: You’ll need one to make repayments, and some providers may favour existing customers – though it’s not always a deal-breaker.

  • Healthy credit history: Lenders want to see you’ve managed credit well in the past. If you’ve had issues like defaults or bankruptcy, you might find it harder to get approved.

  • Minimal recent credit applications: Making lots of applications in a short space of time can raise red flags.

Since every provider is different, it’s a good idea to check their specific requirements before applying. That way, you’ll avoid unnecessary credit checks and boost your chances of getting the right card for your spending habits.

How do rewards credit cards work?

Rewards credit cards give you something back every time you spend – whether that’s cashback, points or other perks. Here’s how they work:

Applying is usually quick and easy

You’ll usually need to share some details like your income and overall monthly expenses. The lender will carry out a credit check to decide if you’re eligible and what credit limit to offer. Some providers offer a soft-check eligibility tool, so you can see your chances without affecting your credit score.

Start earning rewards as soon as you spend

Once your card arrives, you can begin using it for everyday purchases. Depending on the card, you might earn cashback, points or loyalty perks. Cashback is typically paid as a credit to your statement, either monthly or once a year. But some cards may require you to spend a minimum amount before you get anything back, so check the terms carefully before applying.

Repay in full to get the most from your card

Rewards cards often come with higher interest rates than standard cards, so to make the most of the perks, it’s best to clear your balance each month. Paying just the minimum could leave you with interest charges that cancel out any rewards you've earned. Setting up a direct debit for full repayment can help you stay on top.

And remember – if you’re choosing a credit card over a debit card, you’ll get added ‘Section 75 protection’ if something goes wrong with a purchase of £100-£30,000 (depending on your credit limit). It’s just one more reason why a credit card can be a smart way to spend.

How much can I spend on a rewards card?

The amount you can spend on a rewards credit card – known as your credit limit – depends on your personal financial situation.

For instance, some premium rewards cards may offer higher credit limits to applicants with good credit history. On the other hand, if you're new to credit or have a less robust credit history, you might start with a lower limit, which could increase over time with responsible use.

Here’s what credit card lenders usually look at before deciding your limit:

  • Your income: Lenders want to know you have a reliable income to afford your repayments.

  • Your credit history: A strong credit score may help you get a higher spending limit.

  • Your other financial commitments: If you already have loans or other credit cards, this can affect how much you’re offered.

What types of rewards credit cards are there?

Not all rewards cards are created equal – and that’s a good thing! It means there’s something for everyone, depending on what perks you’re after and how you like to spend.

Cashback cards

A popular choice if you just want cold, hard money back in your pocket. You’ll usually earn a percentage of what you spend, sometimes the same rate on everything, sometimes higher for certain shops. The cashback might be paid monthly or annually, and some cards do cap the amount you can earn, so it’s worth checking the details.

Points-based cards

Let you collect points as you go, which you can swap for gift vouchers, goodies, or other rewards. Some are more flexible and cover a wide range of retailers, while others are tied to specific brands – like supermarkets or department stores – so you can rack up loyalty points when you do your weekly shop or treat yourself.

Travel and air mile cards

Then there are travel rewards cards, which are great if you’ve got wanderlust. These let you earn points or air miles that can go towards flights, hotel stays or upgrades like airport lounge access.

Credit card guides

Answering your questions about rewards credit cards

Compare more types of credit cards

Page updated on 10th July 2025, Reviewed by Richard Groom