The American Express Nectar Credit Card Review 2022

• Earn 20,000 Nectar points when you spend £2,000 in the first three months (subject to eligibility)
• The earn 2 points for every £1 spent on the card, and a minimum of 3 points for every £1 spent at Nectar partners (when your card is used with the loyalty card)
• Redeem points at retailers, which include Sainsbury’s, Argos and eBay
• Points can be converted to Avios airmiles and spent on flights, hotels and car hire
• No annual fee for first 12 months (then £25)

While there is an annual fee of £25 to pay for this card which offers access to the popular Nectar loyalty scheme, it’s waived for the first year. The fee will then apply on the anniversary of card membership.

There is no introductory offer on purchases, so new spending will be charged at a rate of 24.7% (variable) for the first 12 months. The representative annual interest rate (APR) – which factors in the fee – sits at 30% (variable).

However, you will get a standard 56 days’ interest-free on purchases. This means that if you clear your balance in full when it is due, you won’t pay a penny in interest.

If you are late with your monthly payment, a £12 fee will be triggered.

Under the standard American Express Nectar Credit Card reward program, you’ll earn 2 points for every full £1 you spend on the card, and a minimum of 3 points for every £1 spent at Nectar partners (when used in conjunction with their loyalty card).

But for new customers, there’s also a generous welcome bonus. It pays 20,000 Nectar points if you spend £2,000 in the first three months of the account open date. The points will be awarded within a month of collecting them.

To put this into context, 20,000 Nectar points are worth £100 when redeemed with a Nectar partner, which include Sainsbury’s, Argos, eBay, Esso and Eurostar. Nectar points can also be converted into Avios (and vice versa).

As an American Express Nectar cardholder, you can benefit from extra points via the referral programme, too. You get 5,000 bonus points if a family member or friend applies for a card (and is accepted). This perk is capped at 90,000 points per year.

This is all alongside benefits including discounts on travel via American Express Offers, and music, film and theatre tickets via American Express Experiences.

As with any credit card, the American Express Nectar Credit Card offers protection on purchases – as long as they cost more than £100 and up to £30,000.

You get this cover under section 75 of the Consumer Credit Act, and it applies to the whole cost of the item or service you are purchasing, even if you only put part of the cost – such as the deposit – on your plastic.

More information is available with our guide.

Alongside section 75, American Express also offers its own refund and purchase protection scheme.

As the American Express Nectar Credit Card offers an attractive rewards offering – with a generous welcome bonus – expect to need a decent credit score to qualify.

It makes good sense to use an eligibility checker to view how likely you are to get accepted before applying formally. A ‘soft search’ won’t damage your credit rating should you be turned down and go on to make multiple card applications.

• Attractive welcome windfall and ongoing rewards offering
• Points can be redeemed at a range of retailers and can also be converted into Avios
• Generous ‘refer-a-friend’ programme
• Points can be accrued more quickly by adding a friend or family member to your account
• No annual fee to pay for the first 12 months (then £25)
• No minimum income requirement
• Purchase and refund protection

• No introductory interest-free window on either purchases or balance transfers
• Annual fee (though this only kicks in in year two)
• High APR
• Foreign transaction fees apply for use overseas
• Not as widely accepted at retailers as Mastercard and Visa

If you’ve had a personal American Express card in the previous two years, you won’t be eligible for the welcome bonus.

While the card may be great value in year one when it’s fee-free, you’ll need to do a fair amount of spending on the card thereafter to make it worth paying.

You’ll also need to be prepared to put £2,000 on the card in the first three months to unlock the welcome bonus, which only makes sense if this level of spending would otherwise fall in with your budget.

If you use the card to withdraw money from an ATM, interest will be charged straight away. And be wary of using this card overseas, as foreign transaction fees will apply.

If you’re already a keen Nectar reward scheme user, and looking for a card where you can build up your points – as well as air miles – from almost all your everyday spending, this one could be just the ticket.

This is especially the case if you’re planning to spend at least £2,000 within the first three months – resulting in a 20,000-point windfall worth £100.

However, with a representative APR of 30%, the value of any rewards you earn will be wiped out if you leave a balance lingering on the card from one month to the next. To avoid paying interest, set up a direct debit to clear your balance every month.

If you don’t plan on using the Nectar scheme, most of the features on this card can be found elsewhere.

Equally, if you think you would benefit from having an introductory 0% period on purchases or balance transfers to give yourself some breathing space, then you might be better off with a card with introductory offer – and no ongoing costs. That said, this is likely to mean foregoing such attractive rewards.

Equally, you may be able to find cards with even more generous welcome bonuses or more extensive rewards – but probably in return for a higher annual fee.