Treat Yourself With A Rewards Credit Card
How good would it make you feel if every time you spend money
you get a reward? Pretty good I would think, well you can, with
a credit card reward scheme, but only if you know how to manage
these credit cards.
Credit card rewards are a great way to reward their loyal
customers by given them something back every time they use
their credit card. Most credit card companies give you reward
points, for example say for every £10 you spend you get 1
reward point back. You can then save these points and redeem
them for holidays, TVs, flights and more or even cash rebates.
The credit card companies are looking for ways to make us spend
more money with our credit cards and as the more we spend the
more profit that the credit card companies will get. Interest
rates are getting higher and do not forget the retailers as
they charge them a fee of up to 2% on the amount that we spend
in their premises.
A cash back credit card is properly what most people go for.
With cash back credit card you can purchase whatever you wish,
and receive cash back, however, with point rewards you are
restricted to what you can purchase. You usually receive your
cash back in a lump sum each year, and many customers tend to
see this as the best option. The people who can make this
scheme work to their advantage are the credit card customers
that never pay interest charges, as they get all the advantages
but do not pay a penny back in interest.
One of the best cash back credit cards on the market is the
offer from American Express, their Blue card and Platinum card
are two of the best cards around, you have to spend more to
gain full advantage of the Platinum card spending over £7,500
to get a 2% return on every £100 spent.
The best reward cards are usually self-motivated as with Virgin
who will give you more value for putting your reward points,
into buying airline tickets with them. Although Tesco will only
redeem 50p for every £100 spent in their store means they are
not exactly breaking the bank!
The credit card reward scheme is not for everyone; if you are a
borrower meaning that you don’t pay your debt off fully each
month then a reward card is not for you. The reason is the
interest that they add to your account every month, will exceed
the amount of points that would have accumulated on your
spending so you’ll not benefit from this scheme.
Many credit card reward schemes are now targeted to the travel
market. Credit card companies look on this sector as being more
lucrative for the consumer and the rewards are specifically
targeted as a benefit that many people will enjoy. Supermarkets
are becoming more prominent in the reward credit card
environment with Asda, Sainsbury’s and Tesco major players
allowing consumers to charge their reward points to their
weekly shopping bill.