Rewards credit cards make an appealing offer: spend as normal and collect free flights along the way. Some people do exactly that and come out hundreds of pounds ahead each year. Plenty of others pay an annual fee for points they never use, or pay interest that wipes out every reward.
Whether a card "just for the points" is worth it comes down to three things: whether you pay in full every month, how you'll redeem the points, and whether the fee pays for itself. This guide works through the numbers using UK card terms checked on 6 October 2026.
Note: Fees, earn rates and bonuses change often, and two big welcome offers end today (6 October 2026). The value of a point is an estimate, not a guarantee. This is guidance, not personal financial advice.
Key Takeaways
- A points card only pays if you clear the balance in full every month. UK purchase rates on these cards are around 29–30% APR, which wipes out any reward.
- About 1p per Avios is a sensible working value. What you actually get depends on how you redeem.
- Sign-up bonuses are where most of the value sits. 20,000–25,000 points for £3,000 of spending is worth more than a year of normal earning for most people.
- Paid cards (£195–£300 a year) only pay their way with heavy spending or a voucher you'll really use.
- If you won't book reward flights or hotels, a no-fee cashback card is simpler and often the better choice.
At a Glance: Popular UK Points Cards
| Card | Fee | Earn per £1 | Standard welcome bonus | Main perk |
|---|---|---|---|---|
| British Airways Amex | £0 | 1 Avios | 5,000 Avios for £2,000 in 3 months | Economy 2-for-1 voucher after £15,000 a year |
| Barclaycard Avios | £0 | 1 Avios | 5,000 Avios for £1,000 in 3 months | Cabin upgrade voucher after £20,000 a year |
| Barclaycard Avios Plus | £20 a month (£240 a year) | 1.5 Avios | 25,000 Avios for £3,000 in 3 months | Upgrade voucher or 7,000 Avios after £10,000 a year |
| Amex Preferred Rewards Gold | £0 in year one, then £195 | 1 point (more on airlines, foreign currency and Amex Travel) | 20,000 points for £3,000 in 3 months | Up to 10,000 bonus points a year, 4 lounge passes, £120 Deliveroo credit |
| BA Amex Premium Plus | £300 a year | 1.25 Avios from 7 October 2026 | 30,000 Avios for £6,000 in 3 months | 2-for-1 voucher after £15,000 a year, any cabin, 2-year expiry |
Both BA Amex cards have a boosted welcome offer (10,000 and 60,000 Avios) for applications made by 6 October 2026. From tomorrow the standard bonuses above apply.
How Points Cards Work
You earn points on every purchase and swap them for flights, hotel stays, upgrades or vouchers. In the UK, most rewards cards earn Avios (used by British Airways and several other airlines) or American Express Membership Rewards. Membership Rewards points convert to Avios or Virgin Points at 1:1.
The key difference from cashback is that a point has no fixed value. A cashback card pays a set percentage in pounds. A points card pays nothing until you redeem, and what you get depends entirely on how you redeem.
What Is a Point Actually Worth?
UK loyalty sites commonly use around 1p per Avios as a working figure. The real range is wide:
- Good value: reward flights on routes where cash fares are high, especially when you use a 2-for-1 companion voucher on a premium cabin.
- Middling value: short-haul economy, where cheap cash fares make the points less useful.
- Poor value: swapping points for shopping vouchers or merchandise, which often works out at well under 1p.
Two things pull the value down. Reward flights still carry taxes, fees and carrier charges, which can be large on long-haul trips from the UK. And points are only worth something if reward seats are available on the dates you want.
Rule of thumb: if you can't see yourself getting at least 1p per point, compare the card with cashback, not with other points cards.
The Real Prize: The Sign-Up Bonus
Normal earning is slow. At 1 point per £1, spending £1,000 a month earns 12,000 points a year, worth about £120 at 1p each.
Welcome bonuses are far bigger:
- Amex Preferred Rewards Gold: 20,000 points for spending £3,000 in three months, with no fee in the first year. You won't get the bonus if you've held another personal Amex card in the past 24 months.
- Barclaycard Avios Plus: 25,000 Avios for £3,000 in three months, but the £20 monthly fee starts straight away. Under rules changed on 31 July 2026, you get no bonus if you've had a Barclaycard Avios bonus in the past 24 months, and you can't apply at all if you've held any Barclaycard in the past six months.
- British Airways Amex (free): 5,000 Avios for £2,000 in three months as standard.
That's why many people treat a points card as a one-year project: earn the bonus, redeem it, then decide whether to keep the card before the fee arrives. Barclaycard lets you downgrade from Avios Plus to the free Avios card in its app.
Only chase a bonus with spending you'd do anyway. Buying things you don't need to hit £3,000 turns a £200 reward into a loss.
Do the Numbers: £1,000 a Month
Here's what each card is worth after the first year for someone who spends £12,000 a year on the card and pays in full. Bonuses are ignored and points are valued at 1p.
| Card | Fee | Points a year | Value at 1p | Net |
|---|---|---|---|---|
| BA Amex (free) | £0 | 12,000 | £120 | +£120 |
| Barclaycard Avios (free) | £0 | 12,000 | £120 | +£120 |
| Barclaycard Avios Plus | £240 | 18,000 + 7,000 at £10,000 | £250 | +£10 |
| Amex Gold | £195 | 12,000 + 5,000 at £10,000 | £170 | −£25 (before perks) |
| BA Amex Premium Plus | £300 | 15,000 | £150 | −£150 |
The first year looks very different. On the same spending, Amex Gold would earn about 37,000 points (bonus, everyday spend and the £10,000 spending bonus) with no fee, worth around £370. Avios Plus would earn about 50,000 Avios, roughly £500, less £240 in fees.
At this level of spending the free cards win from year two. Paid cards only come out ahead if you value the perks:
- Amex Gold: the £120 Deliveroo credit and four lounge passes close the gap, but only if you'd use them.
- BA Premium Plus: the earn rate drops from 1.5 to 1.25 Avios per £1 on 7 October 2026, and the triple Avios on BA spending goes too. The case for the card now rests almost entirely on the 2-for-1 voucher, which is valid in any cabin. Used on a long-haul business class trip, that voucher can be worth more than the fee. Full terms are on the Premium Plus card page.
- Avios Plus: 1.5 Avios per £1 is now the highest standard Avios earn rate of the cards here, and it's a Mastercard, so it's accepted more widely than Amex.
Know your number first: FactsDeck's Budget Planner shows how much of your regular spending could realistically go on a card you clear every month. That figure decides whether a paid card can earn back its fee.
Why the APRs Look So High
Fee-paying cards show eye-watering representative APRs because the fee counts as a cost of borrowing. Amex Gold's representative APR is 85.8% variable including the fee, while the purchase rate is 29.1%. Barclaycard Avios Plus shows 80.1%, with a purchase rate of 29.9%.
If you pay in full every month, you don't pay that interest. If you don't, the maths falls apart. Carrying a £2,000 balance for a year at around 29% costs roughly £500 or more in interest, several times what a year of points is worth.
Five Ways Points Cards Backfire
- Carrying a balance. Interest costs far more than the rewards are worth. If you already owe money on cards, clear it first. FactsDeck's Debt Payoff Planner can map out a plan.
- Overspending to hit targets. Spending "for the points" is still spending.
- Devaluations. Schemes change the rules, as Premium Plus holders are finding out this week. Never pay a fee for a perk you can't afford to lose.
- Unused points. Points sitting in an account earn nothing, and companion vouchers have expiry dates.
- Too many applications. Each full application leaves a hard search on your credit file, and several close together can make lenders cautious. Read does checking your credit score hurt it? to see the difference between soft and hard searches.
For US Readers
The same logic applies in the US, but the numbers are bigger. US travel cards tend to offer larger welcome bonuses and charge higher annual fees, and many come with statement credits that only count if you'd spend the money anyway. Points can often be moved to several airline and hotel partners, which gives more ways to get good value.
The warnings are the same too. US card APRs are high, so carrying a balance cancels out the rewards, and hard inquiries show up on your credit reports and can affect your FICO score. The Consumer Financial Protection Bureau (CFPB) publishes plain-English guides to card terms and fees.
What This Means for You
A points card is a tool for people who already handle credit well. If you pay in full every month, travel at least once a year and will book reward flights, the welcome bonus alone can be worth a few hundred pounds. A free card can then keep earning steadily.
Paid cards are a closer call. Work out what the perks are worth to you in pounds, not what they're worth on paper. If the honest answer is less than the fee, downgrade or cancel before renewal.
If you sometimes carry a balance, or you'd never use the points, skip it. A no-fee cashback card, or no new card at all, is the better choice. For simpler starting points, see FactsDeck's guide to the best credit cards for beginners.
What You Should Do Next
- Check you've paid every card in full for the past few months. If not, deal with the balance first.
- Work out your realistic monthly card spending and whether it covers a bonus target without extra buying.
- Decide how you'd redeem: reward flights, hotels or nothing at all.
- Use eligibility checkers before applying, so you don't leave unnecessary hard searches.
- Set up a full-balance Direct Debit as soon as the card arrives.
- Put a reminder in your calendar a month before any annual fee is due.
- If you need help with debt, contact MoneyHelper or a free debt charity rather than taking on more credit.
Frequently Asked Questions
Can I convert Amex points to Avios?
Yes. Membership Rewards points from cards such as Amex Preferred Rewards Gold convert to Avios or Virgin Points at 1:1.
Can I cancel a points card after the first year?
Yes. Amex Gold has no obligation to keep the card beyond the free first year, and Barclaycard lets you downgrade Avios Plus to its free card. Redeem or transfer your points first, because closing an account can mean losing them.
What is a companion voucher?
It lets a second person fly on a reward booking for no extra Avios, though you still pay taxes and charges for both seats. The free BA Amex voucher is economy only and lasts one year, while the Premium Plus voucher covers any cabin and lasts two years.
Is a points card better than a cashback card?
It can be, but only if you redeem points at around 1p or better and keep fees low. If you don't travel or don't want to manage booking rules, cashback is simpler and the value is guaranteed.
Should I get more than one points card?
Only if you can manage them all and pay each in full every month. For most people, one points card plus a Visa or Mastercard backup is plenty, since Amex isn't accepted everywhere.
This article is for information and education only and isn't financial advice. Card terms were checked on 6 October 2026 and can change at any time. Always read the provider's current terms before applying.
