Credit Card Review: The Rewards Low Rate Credit Card From American Express UK
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UPDATED 14 October 2019: American Express has now closed this card to new applicants.
TPG UK always recommends paying your balance in full each and every month to avoid interest charges, which usually outweigh any rewards benefits you receive. But if that’s not possible, there are cards that provide a lower interest rate than some of the more expensive (but more rewarding) credit card options.
One of those is The American Express Rewards Low Rate Credit Card, which has no annual fee and — as the name suggests — a low interest rate.
Who Is This Card For?
This card is marketed towards those whose primary focus is on a low rate of interest charged on purchases, while still having access to some rewards benefits.
Welcome Bonus and Annual Fee
This card has no annual fee but still provides a welcome bonus. You’ll get 2,500 Membership Rewards points for spending £1,000 in the first three months of holding the card. Based on TPG UK’s latest points valuations, those 2,500 Membership Rewards points are worth approximately £38.
Representative example: 9.9% APR variable with a purchase rate of 9.9% per annum variable with an assumed credit limit of £1,200.
There’s a straightforward earn rate of 1 Membership Rewards point per (full) £1 spent. Unfortunately, as this is a no annual fee card, there are no categories or purchases that earn a higher rate than this.
The Membership Rewards can be transferred to a number of airline and hotel partners. With most airlines, you’ll receive a 1:1 transfer rate, meaning your 5,000 Membership Rewards would become 5,000 British Airways Avios. Read our complete guide to Membership Rewards here.
You could alternatively elect to redeem those 2,500 Avios for a £12.50 gift voucher for retailers like Boots and Currys PC World, although we think there’s more value in transferring them to an airline or hotel program instead.
- A low 9.9% interest rate on purchases.
- You can opt to have free supplementary cards for any close family and friends in order to maximise your Membership Rewards or low-interest rate. But remember you, as the primary cardholder, will still be responsible for paying the balance each month.
- There’s travel accident insurance for up to £150,000 when you use the card to purchase that transport.
- Purchase protection up to £2,500 and refund protection up to £200 for eligible items (conditions apply).
Keep in mind that some of these benefits, such as the insurances, are subject to enrollment.
Which Cards Compete With This Card?
American Express UK offers a trio of Amex Rewards Cards that are all branded similarly. The other two in this trio are the Rewards Credit Card from American Express UK, which offers twice the welcome bonus (5,000 Membership Rewards points), and the Rewards Purchases Credit Card from American Express UK (review coming soon), which offers a generous 0% interest rate on purchases for 18 months.
Both of these other cards offer arguably a better value proposition than this card if you are interested in either interest-free periods for purchases.
The Rewards Low Rate Credit Card from American Express UK isn’t a terribly exciting card. The welcome bonus is low, but fortunately, there is no annual fee.
This card seems to be pitched towards those who may not pay the balance in full each month, looking instead to pay the lowest ongoing interest rate. Again, we would always recommend paying your balance in full each and every month.
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