Seven credit cards that really do pay YOU to shop

For shoppers looking for ways to further expand their cash, a rewards credit card has always been touted as a quick win.

But are these cards still worth it now that Sainsbury’s Bank is slashing its points offering from November?

The answer may be ‘yes’ if you are willing to use them for all your daily expenses.

But there are pitfalls to watch out for — the biggest being charges up to 104 percent APR if you don’t repay the debt in full each month, wiping out any gains.

Here we’ve looked at the best cards for households spending £1,000 a month…

Best for… Cash in your pocket

For those interested only in cash rewards, the Amex Platinum Cashback Everyday Credit Card offers a healthy welcome bonus of 5 percent cashback for the first three months, worth up to £100.

After the introductory agreement ends, you’ll earn 0.5 percent cash back on spending up to £10,000 per year, and 1 percent above that.

You need to spend a minimum of £3,000 per year to earn any cashback. Putting £1,000 a month on the card for a year will give you a total of £160.

The Amex Platinum Cashback credit card works better if you spend more than £10,000 a year.

It comes with a 5 percent bonus offer – capped at £125 – in the first three months, and higher cashback rates of 0.75 percent up to £10,000, and 1.25 percent above that.

The cashback is paid annually. The annual fee is £25, but those who put £1,000 a month on the card will get £206.25 in bonuses.

Best for… Points to spend in store

The Amex Preferred Rewards Gold offers a bonus of 20,000 membership points when you spend £3,000 or more in the first three months.

This is in addition to a base earning percentage of one point for every £1 spent (excluding some transactions such as foreign currency purchases).

Top Deal: For those interested in cash rewards, the Amex Platinum Cashback Everyday Credit Card offers a 5% cashback welcome bonus for the first three months, worth up to £100

After spending £1,000 a month for a year, you would have a total of 32,000 points, including the welcome bonus.

From 12 October you can also get a 5,000 points bonus for spending £10,000 in your membership year.

The advantage of Amex points is that they are versatile – you can redeem them at High Street stores, airlines and hotels.

Around 30,000 points can be redeemed for gift cards of around £150 at Currys and Selfridges or you can use them to pay for £135 in purchases at Amazon.

You’ll get more value for your points by redeeming them with Amex’s travel partners, including BA, Virgin and Eurostar.

With approximately 33,000 points, rewards can be earned, such as a night away at a luxury Marriott Bonvoy hotel or an economy return flight to Los Angeles with Virgin Atlantic.

To redeem Amex points for flights or vacations, you must convert them to points on a different schedule, such as Avios, Virgin Atlantic Flying Club, or Hilton Honors.

There are other benefits too, such as £5 back on Deliveroo purchases twice a month, as well as two free visits to an Amex airport lounge (four from 12 October).

The card is free for the first year. After this there is an annual fee of £140 but you can cancel the card before it takes effect.

Members can keep their points after cancellation if they have converted them into another point currency, such as Avios.

Best for… Vacationers

Take off: The British Airways American Express credit card is a good option for collecting Avios points, as well as picking up a free flight for a family member or friend

The British Airways American Express free credit card is a great option for collecting Avios points, as well as picking up a free flight for a family member or friend.

You earn one point for every £1 spent, as well as a 5,000 bonus if you spend £1,000 in the first three months after signing up.

Spending £1,000 a month for a year will earn you 17,000 Avios points – almost on the threshold of 18,500 points for a £1 Reward Saver return flight to a European destination.

In addition to Avios points, when you spend £12,000 per year, you get a free companion voucher that you can use to bring a family member or friend on the same flight in Economy.

Or if you’re traveling alone, you can opt instead for a 50 percent discount on the Avios price you pay for your flight.

Taxes and transportation costs will still be charged on the flights.

More serious Avios collectors with big monthly spend should consider the Premium Plus card, which gives you 1.5 Avios per £1 spent.

You also get a free travel companion voucher when you spend £10,000 per year, and your partner or friend can travel in the same cabin if you book a premium or business class seat.

This has an annual fee of £250 and interest on purchases is charged at 26 percent if you don’t claim your balance in full each month.

The card’s APR — an industry-wide measure designed to help customers compare cost of credit, taking interest charges and fees into account — is 103.7 percent.

The best for… your weekly shop

Loyalty Rewards: Tesco Clubcard points can be redeemed for three times their value with its Reward partners, worth £45

Customers loyal to Tesco and Sainsbury’s can withdraw money from their groceries with their own credit cards.

With the Tesco Bank credit card you can earn five points for every £4 you spend in Tesco, and one for £8 you spend elsewhere. If you spend £1,000 a month outside of Tesco, you can earn up to 125 Clubcard points, worth £1.25 or £15 a year.

Clubcard points can be redeemed for three times their value with the Reward partners, worth £45.

Sainsbury’s Bank credit card is about to change its points system to give one point for every £2 spent on Sainsbury’s, Argos, Habitat and Tu clothing – in addition to the usual points awarded for using a Nectar – Map.

Don’t be tempted to spend too much money to get bonuses. But add a family member or partner to your account to earn cashback faster.

moneymail@dailymail.co.uk