Credit Cards With Rewards
Your guide to 0% credit cards and the best offers available
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Credit Cards With Rewards

The idea behind credit cards with rewards is quite simple. As you use the card and buy things you get a reward. It may be cash back or points or air miles but in total the rewards may be worth hundreds if not thousands of pounds a year, so they are well worth thinking about.

In theory they are a great idea, as they seem to give you a bit extra and are almost putting cash I your pocket. There are only a few major points to remember to get the best out of your card

Pay the card off each month

Don’t forget you are being charged anything between 15 and 25% and only receiving 1% cash back. So always pay off your rewards card in full each month to get the full benefit and not have it costing you extra.

Beware annual fees

Some cards also have an annual or monthly fee, which can eat into the value of the rewards. They are now increasingly uncommon but just watch out so you don’t fall into the trap.

Decide what rewards you would like

Most offers are for cash back, air miles or points towards other special offers. Which you go for entirely depends on your own circumstances. If you don’t fly much, air miles may not be of much interest. If you’re getting cash back is it for all purchases or only for some above a certain value and is there a maximum spend each month, above which you will not get any cash back?

There are always new offers appearing on the market so it’s well worth checking out several different cards to find the one that suits you the best. Most will have introductory offers of some form.

How to use your card

To get the best out of your rewards card you should use it for all your normal spending. Don’t forget, effectively you are being paid to use it. Shopping, petrol, trips out, wherever you can use your new card. Only use cash or debit card if you can’t use your new card.

If you are in the position of being able to reclaim your work expenses reward cards are great way to effectively boost your earnings at no cost to yourself.

Each month pay off your card totally, so no debt is carried into the next month. You avoid paying interest but still have the bonus of extra cash, air miles or points. Using the card like this means you’ll be beating the system in effect. You are getting the credit card company to pay you each month!

Don’t want to pay off in full each month?

More than likely a reward card isn’t right for you. You should look at cards with either a permanent low interest rate or a balance transfer with a substantial 0 interest rate.