Best Visa and Mastercards for Earning Rewards: Your Ultimate Guide

In the ever-evolving realm of credit cards, choosing the right Visa or Mastercard can be a game-changer for individuals looking to earn rewards such as Avios, airline miles, or hotel points.

With a plethora of options available, this article delves into the top choices and provides insights into why each card may be the right fit for you.

Understanding Foreign Exchange Fees

Before we dive into the credit card options, it’s essential to note that most of these cards come with a 3% foreign exchange fee. This means that if you use them abroad, you’ll incur additional charges.

To avoid this, it’s advisable to get a separate free credit card for international use. Unfortunately, there are no travel rewards cards without foreign exchange fees, except for one intriguing option - Currensea.

Currensea Mastercard Debit Card

Currensea offers a simple yet ingenious solution. You can pay abroad with your Currensea Mastercard debit card, and it will convert the cost to Sterling with just a 0.5% fee - a significant reduction compared to the usual 3%.

This option is not only cost-effective but also risk-free, as Currensea is entirely free to use.

Visa and Mastercards Earning Air Miles

For avid Avios collectors, here are the top Visa and Mastercards to consider:

» Barclaycard Avios Plus Card

Launched in February 2022, this card has taken the market by storm. Offering an impressive 25,000 Avios sign-up bonus when you spend £3,000 in three months, it sets a new standard for Visa and Mastercard credit cards in the UK.

With an earning rate of 1.5 Avios per £1 and a British Airways upgrade voucher for £10,000 annual spending, it’s a stellar choice.

» Barclaycard Avios Card

If you prefer a fee-free option, the Barclaycard Avios Card offers 5,000 Avios as a sign-up bonus. However, it’s advisable to start with the Avios Plus Card for the 25,000 Avios bonus and then downgrade to the free card later.

» HSBC Premier Mastercard

HSBC Premier account holders can opt for this card, which earns 0.5 Avios per £1. While it’s not the best choice for pure Avios earning, it can be valuable for those considering conversions to other travel partners.

» HSBC Premier World Elite Mastercard

This premium card comes with an annual fee but offers an impressive 80,000 points sign-up bonus, airport lounge access, and 1 Avios per £1 spent. It’s worth considering if you meet the requirements.

Best Card for Earning Virgin Points

For those interested in Virgin Points, here are the top options:

» Virgin Atlantic Reward Mastercard

The free Virgin Atlantic card offers 0.75 Virgin Points per £1 spent, making it a decent choice for earning Virgin Points.

» Virgin Atlantic Reward+ Mastercard

For a lower annual fee than the Avios Plus Card, this card matches it with 1.5 Virgin Points or Avios per £1. However, Virgin Points have limitations compared to Avios.

Conclusion

The market is currently brimming with excellent Visa and Mastercard options for earning travel rewards. The Barclaycard Avios Plus Card stands out as a top choice for Avios enthusiasts, offering an unprecedented 25,000 Avios sign-up bonus. Additionally, the Virgin Atlantic cards provide good value for those well-versed in maximizing Virgin Points.

Before making a decision, it’s important to assess your travel and spending habits to determine which card aligns best with your goals. Keep in mind that foreign exchange fees may apply when using these cards abroad, so consider a solution like Currensea to mitigate those costs.

As with any financial decision, it’s crucial to conduct thorough research and ensure that the chosen product suits your specific circumstances. This guide is intended to provide insights into the available options but should not be considered financial advice.