Best credit cards for everyday spending and rewards in 2025
Choosing the best credit card for everyday spending and rewards in 2025 means focusing on options that offer strong cashback or points on groceries, bills, and shopping while keeping fees low. UK consumers can earn up to 5% back on groceries with cards like the Tesco credit card or M&S credit card, according to Money to the Masses analysis from October 2025. This guide covers top picks across categories, helping you match a card to your habits for maximum value, subject to eligibility checks.
Understanding rewards for everyday spending
Everyday spending on essentials like groceries and utilities qualifies for rewards on most UK credit cards, turning routine purchases into savings. Rewards typically come as cashback (direct money back) or points (redeemable for vouchers or travel), with average returns of 0.5-1.5% on general spend, per Finder’s October 2025 data. In 2025, expect rising cashback rates due to competitive banking, but always pay off balances to avoid APR charges—the annual percentage rate of interest on unpaid amounts.
What counts as everyday spending
Everyday spending includes groceries, fuel, bills, and online shopping, excluding large one-offs like holidays. For example, £500 monthly on groceries could earn £25 in cashback at 5%. Track categories to target cards like the best cashback credit card for supermarkets.
Types of rewards: Cashback vs points
Cashback provides straightforward percentage returns, ideal for bills, while points offer flexibility for retail or travel redemptions. Cashback edges out for simplicity on daily use, but points suit higher spenders. Which? identified 12 Best Buys in 2025 for these, analysing hundreds of deals.
2025 trends in UK card rewards
Rewards are shifting towards sustainable options and higher grocery bonuses, with no-fee cards proliferating. Balance transfer credit card deals now often bundle rewards, but devaluation risks loom—net returns could dip if thresholds rise. MoneySavingExpert highlights Tesco Clubcard at up to 1p per £1 spent as a stable choice.
Top cashback cards for groceries and bills
The strongest cashback comes from retailer-linked cards, with Tesco and M&S leading for UK shoppers spending £300+ monthly on food. These beat general cards by 3-5% in bonuses, but cap at specific stores. For versatility, Barclays and Virgin offer 0.25-1% on all bills.
Tesco and M&S options
The Tesco credit card via Clubcard gives 1p per £1 at Tesco (up to 5% effective with doubles), per MoneySavingExpert’s 2025 review. M&S credit card matches with 1 point per £1, worth up to 1% on clothing and food. Both have no annual fees but 19.9% representative APR.
Barclays and Virgin cashback deals
Barclays Platinum cashback credit card returns 1% on supermarket spend up to £500 monthly, dropping to 0.25% after. Virgin credit card pays 0.25% on everything, plus bonuses for direct debits. Ideal for mixed bills, with Virgin’s rates stable into 2025.
No-fee alternatives
American Express offers no-fee entry cards with 1% cashback equivalent via points. For low spenders, these avoid thresholds—Finder notes average 0.5% without extras.
| Card name | Reward rate | Annual fee | Representative APR | Best for |
|---|---|---|---|---|
| Tesco Clubcard Credit Card | Up to 5% on groceries | £0 | 19.9% | Supermarket shopping |
| M&S Credit Card | 1% points on spend | £0 | 21.9% | Food and clothing |
| Barclays Platinum | 1% cashback supermarkets | £0 | 21.9% | Bills and fuel |
| Virgin Money | 0.25% all purchases | £0 | 22.9% | Everyday mixed spend |
| Amex Platinum Cashback Everyday | 0.5-1% cashback | £0 | 22.2% | Online and dining |
Data from Which? and MoneySavingExpert, October 2025. Eligibility varies by credit score.
Best points-based rewards cards
Points cards excel for flexible redemptions, with American Express leading at 1-2 points per £1, convertible to cash or miles. These suit £1,000+ monthly spenders, offering more value than flat cashback on non-grocery items. In 2025, schemes like Avios tie rewards to travel perks for everyday users.
American Express for flexible points
American Express credit card’s Membership Rewards give 1 point per £1, worth 1% as cashback or more in travel. No fee on basic versions, but premium tiers boost to 2x on dining—Finder rates it top for versatility.
Avios and travel-linked rewards
British Airways Avios credit card earns 1 Avio per £1, accelerating free flights from daily spend. Pairs well with everyday purchases, though redemption minimums apply.
Nectar and retailer-specific schemes
Sainsbury’s Nectar card yields 0.25% points on non-grocery, doubling at stores. Money to the Masses calls it a 2025 winner for loyalty holders.
Tip: Maximise points by combining cards
Rotate between cashback for groceries and points for travel—track via apps to hit bonuses without overspending. Always check credit score first to boost approval odds.
0% interest cards for purchases
Top 0% purchase credit cards offer up to 36 months interest-free, per Compare the Market’s 2025 data, perfect for spreading everyday buys like appliances. Combine with rewards for net gains up to 1%, but watch fees post-period.
Long-term 0% deals
Barclays and HSBC lead with 30+ months at 0% on purchases over £100. Ideal for £500+ spends, saving £100+ in interest versus 20% APR.
Combining with rewards
Some like Virgin Money bundle 0% with 0.25% cashback—use for bills while earning. Avoid if rewards don’t offset 2-4% transfer fees.
Eligibility and pitfalls
Good credit required (score 700+); pitfalls include reverting to 25% APR. Balance transfer options can extend, but clear in full.
Options for bad credit with rewards
Even with bad credit, cards like Aqua offer 0.5% cashback after six months on-time payments, building history. These start basic but upgrade to better rewards, filling a gap in mainstream guides. Vanquis provides similar entry-level perks for rebuilding.
Aqua and Vanquis basics
Aqua credit card approves scores below 600, with 29.8% APR but 1% cashback potential. Vanquis credit card mirrors at 0.5%, focusing on responsible use.
Building credit through rewards
Pay on time to raise scores 50+ points yearly, unlocking premium cards. Track via free tools; rewards motivate consistency.
Guaranteed approval cards
Options like Capital One suit very poor credit, with minimal rewards but credit-building reports.
How to apply and maximise rewards
Compare via tools like MoneySavingExpert’s eligibility checker, then apply online in 10 minutes—pre-approval avoids score hits. Maximise by hitting bonuses early, like £20 sign-up on £1,000 spend, and redeem quarterly.
Comparison tips
Use tables for APR, fees, and rewards; factor £500 monthly spend. Sites like Which? best credit card deals analyse hundreds.
Application process
Enter details at provider sites; decisions instant. Apply for credit card steps include ID upload.
Avoiding common fees
Pay full monthly to dodge 20%+ interest; cap foreign use at 2.75%. Review terms yearly.
Frequently asked questions
What is the best credit card for everyday spending in 2025?
The Tesco credit card stands out for everyday spending in 2025, offering up to 5% rewards on groceries through Clubcard points, ideal for UK families. It has no annual fee and a 19.9% representative APR, but requires good credit for approval. For broader use, Virgin Money provides consistent 0.25% cashback on all purchases, helping low-to-medium spenders save £50+ yearly on £2,000 monthly bills.
Which UK credit card gives the most rewards in 2025?
American Express Membership Rewards card delivers the highest potential, with 1-2 points per £1 redeemable at over 1% value, especially for travel. High spenders (£1,500+/month) can maximise via bonuses, but it suits fair credit scores. Compare to Tesco’s 5% grocery cap—Amex wins for flexibility, per Finder’s top picks.
Are there cashback cards with no annual fee?
Yes, most top cashback credit cards like Barclays Platinum and M&S have £0 fees, returning 1% on supermarkets without extras. These are accessible for average credit, avoiding premium costs. However, watch spending limits—exceeding reduces rates, as noted in MoneySavingExpert guides.
How to choose a rewards credit card for groceries?
Assess your monthly grocery spend; opt for retailer-tied like Tesco credit card if £300+ at one store for 5% back. Check eligibility via soft searches to match credit score. Factor APR for any carryover—low spenders favour no-fee flat rates over bonuses.
What are the top 0% purchase cards for 2025?
Leading 0% purchase credit cards include Barclays at 31 months and NatWest at 28, per Compare the Market, for interest-free everyday buys up to £5,000. Combine with rewards for extra value, but plan repayments to avoid 20%+ post-period rates. Good credit is key; bad scores face shorter terms.
Can I get a credit card for bad credit with rewards?
Yes, Aqua credit card and Vanquis offer basic 0.5% cashback for bad credit applicants, helping build scores with on-time payments. These have higher APRs (29%+) but no deposit, easing entry. Over six months, upgrades unlock better rewards—strategic for rebuilding while earning small returns on essentials.
What is the best cashback credit card for bills in the UK?
For bills, Virgin credit card’s 0.25% on all debit payments is reliable, with bonuses for setup. It outperforms general cards for utilities, saving £30 yearly on £1,200 bills. Eligibility is broad, but monitor for rate changes in 2025 forecasts.
