We don’t write about the Sainsbury’s Nectar credit card much but we do cover it occasionally, including a full card review each year. It is, after all, another option for earning Avios under the Avios / Nectar partnership.
That said, we will now write about it even less. Sainsbury’s has come like a thief in the night and gutted the value of the card.
From 1st November, the Nectar earning rate will be reduced to just 1 Nectar Point per £2 spent in Sainsbury’s, Argos, Habitat and Tu.
This is a 75% reduction on your return on spend at Sainsbury’s-owned retailers. A Nectar point is worth 0.5p so under the new rate your effective cashback rate in Sainsbury’s and Argos is just 0.25%.
Spending at all other retailers remains unaffected at the incredibly poor rate of 1 Nectar point per £5 spent – basically 0.1% back!
What should you do if you have the Sainsbury’s Nectar credit card?
Apart from the sign-up bonus of 8,000 Nectar points, there is now no reason – at all – to get this card.
The free Barclaycard Avios Mastercard outperforms is your best bet though, even when you shop in Sainsbury’s or Argos, earning you 1 Avios per £1 spent. Even if your ultimate goal was Nectar points and not Avios, you are far better off with Barclaycard. Your 1 Avios per £1 will convert into 1.6 Nectar points per £1, worth 0.8p.
Want to earn more points from credit cards? – September 2023 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.
SPECIAL OFFER: The sign-up bonus on the Virgin Atlantic Reward+ Mastercard is doubled to 30,000 Virgin Points if you apply by 2nd October. You receive 15,000 Virgin Points with your first purchase and a further 15,000 points if you spend £3,000 within 90 days. Apply here.
British Airways American Express Premium Plus
25,000 Avios and the famous annual 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and a huge range of valuable benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
30,000 bonus points (SPECIAL OFFER TO 2ND OCTOBER) and 1.5 points for every £1 you spend Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers:
American Express Business Platinum
40,000 points bonus and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
Capital On Tap Business Rewards Visa
Get a 10,000 points bonus plus an extra 500 points for our readers Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.