Cashback vs Avios vs Points: Which Credit Card Reward Is Worth More?

By QuidRadar Team · Updated 30 October 2026

Rewards credit cards pay you back in one of three main ways: cash, airline miles such as Avios or Virgin Points, or a store or bank points scheme. Which one is best depends on how much you spend, what you'll actually redeem, and whether you'll pay an annual fee. This guide compares them using the cards on QuidRadar.

Key takeaways - Cashback is simplest: it's worth exactly what it says. UK cashback cards we list paid about 0.25% to 1.25% on general spending. - Avios and Virgin Points can be worth more, but only if you redeem them well, usually on flights where you also pay taxes and charges. - Store points suit you if you already shop with that retailer. - Annual fees eat into rewards. Work out your yearly spend before choosing a fee-paying card. - Rewards are wiped out quickly by interest. These cards make most sense if you pay in full every month.

This is general information, not financial advice.

Cashback cards

Cashback pays a percentage of your spending back as money, usually credited to your account once a year or monthly. When we checked on 30 October 2026:

Card Cashback Fee
Amex Cashback Everyday Up to 1%, plus an introductory higher rate £0
Amex Platinum Cashback 0.75% up to £10,000 spend, 1.25% above; 5% intro (up to £125) £25 a year
Halifax Cashback 0.25%, paid each January £0
Santander Cashback 3% in year one on travel, eating out and takeaways (including fuel); 0.25% on everything else £0 a month
UW Cashback Card Up to 10% at partners, 1% elsewhere £3 a month

Example: spend £1,000 a month (£12,000 a year) on the Amex Platinum Cashback card. You'd earn 0.75% on the first £10,000 (£75) plus 1.25% on the next £2,000 (£25), so £100 before the £25 fee: £75 net. Amex acceptance varies by shop, so you may need a backup Visa or Mastercard. See Is American Express Accepted in the UK? Amex vs Visa and Mastercard.

More on how these work: Cashback Credit Cards Explained: Are They Worth It? and Cashback credit cards UK – compare 18 cards.

Avios and airline points cards

Airline cards earn miles you can use for flights, seat upgrades and sometimes hotels. When we checked:

Card Earn rate Fee
British Airways American Express 1 Avios per £1 £0
Barclaycard Avios 1 Avios per £1; 5,000 bonus Avios if you spend £1,000 in 3 months £0
Virgin Atlantic Reward 0.75 Virgin Points per £1 (1.5 with Virgin Atlantic) £0
Virgin Atlantic Reward+ 1.5 Virgin Points per £1 (3 with Virgin Atlantic) £160 a year

What are Avios worth?

There's no fixed value. It depends on what you redeem them for. Reward flights usually also involve taxes, fees and carrier charges paid in cash, and seat availability is limited on popular dates. Converting points into shopping vouchers or using them for cheap economy flights often gives poor value. Using them for long-haul business class or a "companion" style voucher can give much more.

A practical way to compare: before you choose, look up a redemption you'd actually book. Divide the cash price you'd otherwise pay (minus the taxes and charges) by the number of points needed. That gives you a value per point to compare with cashback.

See Avios and Airline Miles Credit Cards: How They Work in the UK for more detail.

Bank and store points

Store points are good value if you'd shop there anyway. They're less flexible than cash.

Which reward should you choose?

If you… Consider
Want simplicity and flexibility Cashback
Fly with BA or Virgin and can plan ahead Avios or Virgin Points
Spend mostly with one retailer That retailer's points card
Spend heavily and travel often A fee-paying card, if the perks outweigh the fee
Sometimes carry a balance None of these. Look at low APR cards instead

Does an annual fee pay off?

Divide the fee by the extra reward rate you'd get compared with a free card. For example, if a paid card earns 0.5% more than a free one and costs £25 a year, you need to spend £5,000 a year just to break even. Count only rewards you'll use.

Watch out for

  • Interest: at around 25% to 30% APR, a balance carried for a few months can cost more than a year's rewards.
  • Foreign fees: some rewards cards charge fees abroad. See No Foreign Transaction Fee Credit Cards (UK): Which Cards Charge 0% Abroad?.
  • Excluded spending: cash withdrawals, balance transfers and some payments usually don't earn rewards.
  • Changing terms: issuers can change earn rates and redemption values.

How to compare offers side by side

Turn every reward into an estimated value per £100 spent:

  • Cashback: the rate itself. 1% cashback is £1 per £100.
  • Avios or Virgin Points: points earned per £100, multiplied by the value per point you'd realistically get.
  • Store points: the value of the vouchers you'd get, but only if you'd spend that money at the store anyway.

Then subtract the annual fee, spread across your yearly spend. Don't forget welcome bonuses, but treat them as a one-off: they shouldn't decide which card you keep long term.

Frequently asked questions

Is cashback better than Avios?

Cashback is simpler and always worth its face value. Avios can be worth more if you redeem them well on flights, but their value varies and reward seats can be limited.

How much is 1 Avios worth?

It depends on how you redeem it. Work out a value by comparing the cash price of a flight you'd book with the Avios and charges needed.

Are rewards credit cards worth it if I carry a balance?

Usually not. Interest charges will typically outweigh the rewards you earn.

Do rewards credit cards have annual fees?

Some do and some don't. Several cards we list, including the BA Amex, Barclaycard Avios and Amex Cashback Everyday, had no annual fee when we checked.

Can I earn rewards on balance transfers?

Generally no. Rewards usually apply only to eligible purchases.

This is general information, not financial advice. Figures were taken from issuers' websites on 30 October 2026.

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