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American Express Nectar credit card reviewed – with a 20,000 point bonus!

Last year American Express increased the sign-up bonus on its Nectar credit card to an impressive 20,000 Nectar points.  I thought it was worth taking a look at the card to see if it is worth adding to your purse or wallet.

This article was updated on 1st April 2018 and all of the information is correct as of that date.

Application link:  American Express Nectar credit card

Key facts:  No annual fee in year 1, £25 annual fee thereafter

The Nectar credit card has a representative APR of 28.2% variable, including the fee, based on a notional credit limit of £1,200.  The interest rate on purchases is 22.9% variable.

If you want to check your credit record before applying for a new card, click here to get your free Experian Credit Score.

Nectar 185

You should look at the two distinct aspects of this card – the sign-up bonus and the long term earning rate – separately.

There is no obligation to keep the card once you have spent the minimum required to receive the bonus, and the card is free for the first year in any event.

The sign-up bonus

The Amex Nectar card comes with a sign-up bonus 20,000 Nectar points, which is worth £100 when spent with most Nectar partners.  Some Nectar deals are worth up to 1p per point (a list of the best value Nectar redemptions is here) which would make the sign-up bonus worth £200.

It is important to note that you need to spend £2,000 within three months to receive this – you do not receive it as soon as you are accepted for the card.

Before applying, you should think carefully about your spending plans for the next three months.  Can you spend £2,000 easily?  Remember that some small shops do not accept American Express so it is slightly more restrictive than a MasterCard or Visa.

If you think you may struggle, you may wish to delay your application until a time when you can predict a period of heavy spending ahead.

The American Express Nectar credit card comes with a £25 annual fee.  For the first year, however, the card is free.  This gives you 12 months to decide if you can spend enough on the card to justify keeping it long term.  If not, you can cancel within the first year and will have paid nothing.

You will receive the bonus irrespective of any other American Express cards you hold.  You will only be disqualified from receiving the bonus if you have cancelled a previous Amex Nectar card in the last six months.

The on-going earning rate

This is pretty good!

You earn 2 Nectar points for virtually every £1 you spend on the card.  This is effectively 1% cashback and potentially more if you spend your points during a special Nectar promotion.

Unfortunately, Amex uses misleading language when describing the earnings rate on the website.  It reads:  “Collect up to 4 Nectar points for every full £1 spent at Nectar partners”.

This has nothing to do with the credit card.  What they mean is that, if you shop is Sainsbury’s or Homebase, you would receive four points in total.  Two of those points are the two that come from the credit card, but the other two are the points that BP etc will give your regardless of how you pay.  I am not very happy with the way that American Express words this as it could give a misleading impression.

Do you usually pay interest on your credit card balance each month?

Please remember that you should only consider getting one of these cards if you clear your balance promptly every month and do not pay any interest to your card issuer.

This card is not designed for people who pay interest on their credit card balances because the interest rate is far higher than many other cards on the market.  This page of the Moneyfacts site shows more suitable ‘low interest rate’ products if you search by ‘Low Standard Rate’.



you can easily spend £2,000 within three months and

you pay off your credit card bill every month (because the interest rate here is high if you don’t)

then I recommend taking a look at the American Express Nectar credit card. You will receive £100-worth of Nectar points for signing up – and they could be worth a lot more if used for a special promotion – and there is no annual card fee for the first year.  As you can cancel the card without penalty before the fee for the 2nd year comes round, you have nothing to lose.

Want to earn more Clubcard or Nectar points? Click here to visit the Shopper Points home page for the latest news and offers. Come back every day for new deals or join our email list.

Do you earn Clubcard or Nectar points from your credit card?.  If not, you're missing out. We review the best options in this article.

Do you convert Clubcard points into Avios or Virgin Flying Club? If you do, visit our sister site, Head for Points, which is full of tips for maximising your frequent flyer miles.

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  1. Will Squires says

    Sainsbury’s only give 1 point per £ as standard now, so you wouldn’t achieve 4 points per £ total unless you have another enhancement with Sainsbury’s bank or a voucher.

  2. Is there a referral bonus like with Amex Gold?

    • There is a refer a friend bonus but you will need to find someone else who has the card – which we don’t (I am already at my ‘4 Amex cards’ limit!).

    • Watfordh says

      I have the nectar amex and could provide a referral, but you’re probably better off going to topcashback. Currently £31.50 for this card.


    I have one myself dating from the days when it was always free so I still have mine and it also gives me access to the Amex opt in offers. I’ve only really used it in Sainsburys and BP but I think I ought to use it in other places as well to see if it triggers other Amex offers.


    I am wondering if its worth getting my OH his own Sainsburys Amex as well – he has own nectar card so I am wondering if during the application you include your nectar card number? Also how do you prove that you have an income above £30 k – do they ask for your household current account details? And how soon after you have triggered the bonus can you cancel your card? As you say its all I the timing – Over November, December and January and February we very easily would have met the target. this last 4 weeks have been very quiet and the next credit card bill will only be £300 – an all time low 🙂

    • Knowing Amex, it will ask for your Nectar number during the application process.

      You don’t give any proof of your household income, but obviously obtaining credit by giving false information is very serious!

      The 20,000 points would be sent to Nectar at the end of the month in which you pass the £2,000 total. However, you don’t need to rush to cancel as there is no fee to pay until the 12 months is up.

  5. Just wondering if they have any other partners we could transfer the points over to ie avios or BA etc?

  6. Hey, I want to apply for the nectar amex as a pretty good intro offer on a free card. Headforpoints website says “If you have had any American Express-issued card in the past six months, you are disqualified from receiving the Amex Nectar card for free in Year 1”.
    Above the article doesn’t mention this. Is it now free for everyone in the first year?

  7. When is this promotion on till? Also what restrictions are there if you hold other cards ie. BAPP and Gold. Should be ok I think?

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