Credit cards are convenient, safe and really easy to use. As the preferred method of spending for millions and with worldwide acceptance you can use credit cards to make payments online, in shops, restaurants and thousands of other places. One type of credit card you can get is a rewards credit card. With a reward card, you can get all the benefits of a credit card but with additional benefits, you earn rewards as you spend. Not only does the card give you a line of credit, it also gives you many extras just for using the card.
There is a wide variety of rewards on the UK market all offering different rewards. For regular travellers you can earn air miles and discounts on hotel stays and travel insurance. There are also a variety of cashback programmes which are very popular. With many cards you can earn points which you can exchange at hundreds of retailers and outlets and earn discounts on things like fuel and grocery shopping. You can earn rewards every time you spend and the more you spend the bigger the rewards. Reward credit cards can help you save and earn money at the same time. There are also some great introductory rates where you can get even more bonuses. As soon as you make your first card purchase on your best priced rewards credit card you will start to accrue reward points and discounts. Reward points can be redeemed as soon as you earn them and the number of rewards points you have will be shown on your monthly statement.
The main disadvantage of a rewards credit card is that they encourage spending as you will earn rewards every time you use the card. Bear in mind that is still ultimately a credit card and that if you miss payments you will have to deal with charges and interest. Reward cards can be great for people who are regular shoppers but they are not suited to people who rarely use their credit cards. They are also not suited to people who have poor credit. If you are attempting to rebuild your credit you would be better served with a card that does not offer the temptation of reward cards which encourage you to spend. Furthermore, reward credit cards often have higher standards for credit scoring and could harm your credit further by having your application rejected.
Reward credit cards are better suited to those who pay off their credit card bills and balance in full every month. This is because the interest that you will pay on your outstanding debt can outweigh the value of any reward. However, there are now far more reward credit cards around and deals available to suit more people and their needs. You should bear in mind that you might have to spend a lot of money to earn a decent reward. Also be wary of introductory offers and don’t just be drawn in by these. With some cards once this period ends they can become very expensive so make sure you know what happens once the offer finishes.
The reward credit card market is very competitive. Use comparison sites to find a great rewards credit card. They offer a free and easy to use service to help you find the right card for you. Not only do they compare rewards credit cards but there are a variety of other cards to choose from including credit cards, prepaid cards, business credit cards, student credit cards and even credit cards for people with bad credit. Whatever card you are looking for they offer comparison tables so you can easily weigh up the pros and cons to find the best one for you.
When deciding on a reward credit card remember that different cards offer different rewards and the right card for you will depend on your lifestyle and what sort of rewards you want to earn .You might want to find a cashback card instead which can be more flexible because you get money back to spend where you choose. On the other hand some rewards credit cards restrict where you can redeem your reward. Each reward programme will have a different way of redeeming points or discounts offered. In many cases you will be given access to a rewards website where you find the details of offers and discounts where points can be redeemed. The main aim is to earn the maximum amount of rewards for the money you spend. When choosing a reward programme make sure is suits your spending habits. Also see whether you are charged for being a member of the rewards card and if you choose a card where you earn points per pound spend make sure you know what the actual worth of these points are when redeemed. You should also see whether the reward points expire.