Credit Card Review: The Rewards Credit Card From American Express UK

May 13, 2019

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American Express UK offers a number of simple-yet-rewarding credit card options to start earning points for your everyday spending. One of those comes in the form of The American Express Rewards Credit Card.

Who Is This Card For?

The Amex Rewards Credit Card is marketed toward those looking to earn some rewards for everyday spending while still avoiding an annual fee.

Welcome Bonus and Annual Fee

There is a welcome bonus of 5,000 Membership Rewards points after spending £2,000 within the first three months of cardmembership. Based on TPG’s valuation of Membership Rewards points, this welcome bonus is worth around £75.

Even better, there’s no annual fee in your first or subsequent years. So, provided you can meet the minimum spend required for the welcome bonus, you should be coming out in front.

Representative example: 22.9% APR variable and a purchase rate of 22.9% per annum with an assumed credit limit of £1,200.

Earning

Just like with its no annual fee, this is an uncomplicated card when it comes to earning. It has a simple earn rate of 1 Membership Rewards point per (full) £1 spent.

Unfortunately, as a no annual fee card, there are no categories or purchases that earn a higher rate than this. If you are spending plenty on travel or with airlines, you may wish to consider other American Express UK cards that offer higher earn rates for these categories.

Also keep in mind that like other Amex UK cards, this card comes with a foreign transaction fee of 2.99%. If possible, try to avoid using this card for international purchases — especially if your main goal is accumulating rewards, as any benefit gained from the points would be offset by the foreign transaction fee.

Redeeming

Read our complete guide to using your Membership Rewards points.

Perks

This card doesn’t come with as many perks as some of the more expensive — but more lucrative — points-earning American Express cards. That said, there are still some benefits you may find useful.

  • You can opt to have free supplementary cards for any close family and friends in order to maximise your point-earning, but remember that you, as the primary cardholder, will still be responsible for paying the balance each month.
  • There’s travel accident insurance up to £150,000.
  • Refund protection insurance up to £200 if a retailer refuses to refund an eligible item.
  • Purchase protection insurance up to £2,500 for items stolen or damaged within 90 days or purchase.

Keep in mind that some of these benefits, such as the insurances, are subject to enrollment.

Which Cards Compete With This Card?

This card is similar to two cards in particular. First, the Rewards Low Rate Credit Card from American Express UK, which also has no annual fee. It comes with a welcome bonus of 2,500 Membership Rewards points after spending £1,000 in the first three months. It provides a lower interest rate of 9.9% instead. (Full review of the card coming soon.)

The card also competes with the Preferred Rewards Gold Card from American Express UK, which offers twice the welcome bonus (10,000 Membership Rewards points). It also has no annual fee, but only for the first year (and then a £140 annual fee in subsequent years).

Bottom Line

This card can be a good option for anyone wanting to get into the points game.

No annual fee will allow you to build your points balance over a longer period of time, and a welcome bonus of 5,000 Membership Rewards points is decent for a no-annual-fee card.

You can apply for this card here.

Featured image by Shutterstock

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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