Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
The American Express Nectar Credit Card review 2020
If you want credit card with a flexible and easy rewards system, a Nectar credit card could be a useful one to have in your wallet.
With a Nectar credit card, you can earn points while you spend (in addition to those that you’d usually earn when you swipe your regular Nectar card at Sainsbury’s and other selected stores), safe in the knowledge that you’ll have no trouble redeeming your points at a range of high street and online stores.
You say: ★★★★★We say: ★★★★★
Doing its job: 5/5
In a nutshell:
Earn 2 points
per £1 spent
Up to 20,000 points
Up to 56 days
Interest-free each billing period
|Rep. APR||27.3% (variable)|
|Annual/monthly fees||Year 1 - £0, Year 2 onwards - £25 per annum|
|Loyalty scheme||Nectar Points|
|Incentive||As a new Cardmember, earn 20,000 bonus Nectar points when you spend £2,000 in your first 3 months of Cardmembership.|
|Additional Rewards Info||Refund Protection - provides refunds to cardmembers in the event of any retailer, online or offline, refusing to refund the value of any goods taken back within 90 days of them being purchased, maximum £200. Global Assist - 24/7 help available when travelling outside the UK. Access to tickets for must-see music, theatre and film events, often before they go on sale to the general public with American Express Experiences. Eligible for American Express Offers where cardmembers can choose offers from selected retailers to obtain discounts or cashback.|
|Purchases interest-free period (days)||56|
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
There are a couple of other great ways this card can help you boost your Nectar earnings too. For each friend you refer you’ll earn a cool 5,000 points, up to a maximum of 90,000 points per year. You could also opt to take Amex up on the offer of an additional card, perhaps for a partner, so that you’ll earn points on all their spending too. If you do this, bear in mind that in the UK credit card accounts can only ever be in one person’s name, so you’ll be solely responsibly for all spending on the card.
As with all reward point credit cards, if you carry a balance from month to month, what you’ll pay in interest will almost certainly outweigh what you’ll earn in rewards. Clear your balance in full each month, however, and you’ll take advantage of the card’s interest-free grace period on purchases – meaning it doesn’t have to cost you a penny.
Pros and cons
- Customers report excellent customer service when dealing with American Express
- Earn points on day-to-day spending
- Up to 20,000 points introductory bonus
- Annual fee
- Applicants with low credit scores are unlikely to be eligible
How does it compare with other Amex rewards deals?
When it comes to repayments, you can make manual repayments online or over the phone (0800 917 8015), or alternatively set up a direct debit. A direct debit is a great idea because it protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee or losing any promotional rates as a result. You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
|Minimum amount||Fixed amount||Fixed percentage||Full amount|
How to apply
It’s fast and straightforward to apply through the Amex site with its secure application form, which takes about 15 minutes to complete.
We’ve found that Amex’s customer service (0800 917 8015) is actually significantly better than most card issuers’. What’s more, the brand is really pushing to increase its customer base in the UK right now. But if this is your first experience with Amex, it’s worth appreciating that it does do some things a little differently, and if you’re having any difficulties then calling in for assistance will usually solve the problem.
If Sainsbury’s is your supermarket of choice, and you’re looking to get something back on your weekly shop, the American Express Nectar credit card lets you earn additional Nectar points. You’ll also be able to earn bonus introductory points, and benefit from a generous referral scheme if you have friends or family who also sign up for the card.
Of course, there’s also an annual fee that kicks in after the first year, which means you’ll need to be using your card relatively regularly to come out ahead.
Frequently asked questions
How many Nectar points can I earn?
You can earn 20,000 bonus Nectar points if you spend more than £2,000 in the first three months, and can then get two points for every full £1 you spend using your card. You can also get up to 90,000 bonus points per year by referring friends to American Express, provided they are approved.
Where can I use my Nectar points?
You can spend your Nectar points at a range of locations including Sainsbury's, Argos, Caffe Nero, Vue Cinemas, as well as eBay and even Eurostar. Find out what other credit cards offer Nectar point rewards here.
What will my credit limit be?
The minimum credit limit is £700, but your specific credit limit will depend on factors like your credit rating and financial situation.
How much does it cost?
This depends on whether you manage to pay off your balance each month. If not, you'll pay a variable rate of 22.2% on purchases, as well as a 3% (min. £3) cash advance fee. There's no annual fee for the first year, but you'll then pay £25 for each subsequent year.