Comparison Reward Cards and benefits
Many credit card issuers reward their cardholders with a range of useful rewards these can range from air miles to cash back to earning points. If you are intending to use a credit card on a regular basis then you might as well see how best the credit card and save you money on the things you want to do or need in the future.
By shopping around, and looking for the deal that works best for you can be a tedious task so we have put together a guide so you can compare reward credit cards
However, it should be noted that no reward scheme is worthwhile unless you can pay your balance off in full each month, otherwise the interest will always outweigh the reward. But if you do manage to avoid the interest, then you will essentially earn by spending – just be careful not to use it as an excuse to buy a few games or new shoes, see where you get the rewards from and use it to your advantage.
Types of rewards
Some credit card companies provide Credit Card Rewards as an incentive for using their credit cards. There are quite a few different options available, and it can be quite difficult to work out the actual worth of points, hopefully this will help you when choosing a new card. Different types of rewards include:
Airmiles – Earn Air miles for every pound spent on your credit card. Air miles can be redeemed for vouchers to provide discounts off flights & holidays. Air miles work like a point scheme, where you rack up mileage that you can then exchange for flights to different destinations. These are usually accrued by spending using an Air miles card, or a credit card that offers an Air mile reward scheme.
Points – Earn points for every pound spent on your credit card. These points can then be redeemed for vouchers from selected stores and service providers.
Cashback – Earn cash back when shopping online or at selected retailers, when you complete a purchase a percentage of the value or a fixed amount is paid back to you, either monthly or annually in some cases. Attractive if you pay the balance off your credit card every month. It is important to read the terms & conditions of any Cashback rebate offer as they differ from one company to the next.
Use our comparison rewards credit card site to see what deals are available from leading UK lenders
What are the benefits?
Use your card. The best way to profit from Air miles reward schemes is to use your credit card for as many transactions as possible each month, while having a direct debit set up to pay the balance in full. You can even pay things like your mortgage in this way to maximise the amount of points you earn without having to pay any charges, but provided that you don’t slip up, or incur any hidden charges, you will essentially get flights for free.
Redeem and pay. You should also check out whether or not you can pay cash to go further than your accrued points allow. Most schemes allow this, but some, like British Airways, apply restrictions, such as where you can fly too.
What are the disadvantages?
One of the main customer complaints was the fact that there are often hidden costs when claiming “free” flights. This occurs when the flight itself is free, but any applicable taxes, fees and surcharges are on top.
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