Many brands offer 'free' and 'premium' versions of their reward cards, with premium offerings promising enhanced benefits in exchange for an annual fee.
But is it worth paying for the extra perks? We've crunched the numbers to find out what you could earn if you spend £500 or £1,000 a month on five top premium cards, compared to their free alternatives.
Amex Cashback Credit Card – £25 a year
You can get 5% cashback for the first three months (up to £125). After that, you’ll earn between 0.75% and 1.25% cashback, depending on how much you spend each year. The card comes with a £25 annual fee, and cashback is credited annually as a statement credit.
Is there a free alternative?:Is the premium card worth it?: Find out more:Amex Preferred Gold Rewards Credit Card – £195 a year
You earn one Amex Membership Reward point per £1 spent. This can be turned into retailer gift cards, air miles or Nectar points. You also get £5 cashback on two Deliveroo orders each month and four complimentary airport lounge visits annually.
Is there a free alternative?:Is the premium card worth it?:Find out more:Barclaycard Avios Plus – £240 a year
You earn 1.5 Avios for every £1 spent, with a monthly fee of £20. Avios points can be redeemed for flights, seat upgrades, and experiences with partners including British Airways. Spending £10,000 in a year qualifies you for a cabin upgrade voucher or 7,000 bonus Avios.
Is there a free alternative?:Is the premium card worth it?: Find out more:British Airways American Express Premium Card – £300 a year
British Airways has its own air mile card where you can get 1.5 Avios per £1 spent and a generous 30,000 welcome bonus. If you spend £15,000, you get a free companion voucher meaning you can take an additional flyer for free on the same flight and class.
Is there a free alternative?Is the premium card worth it?:Find out more:Virgin Atlantic Reward+ Credit Card – £160 a year
Virgin Atlantic’s air miles credit card earns 1.5 Virgin Points per £1 spent. If you spend £10,000 in a year, you’ll qualify for a Flying Club reward voucher, redeemable for an upgrade to premium or a companion ticket.
Is there a free version?: Is the premium card worth it?:source https://www.which.co.uk/news/article/are-premium-cashback-and-reward-credit-cards-worth-the-annual-fee-a0zJ37D7RPP9