Friday 1 May 2015

Reward credit cards.. All you need to know

The idea of reward cards are fairly simple.. you get rewarded for spending on your card. Everyone loves a freebie, so if you do it right and in a sensible way, it can help you earn £100s worth of goodies each year. Depending which you go for, you can collect points, get cash back for spending or redeem points for gift cards/discounts.

There are a few things you do to really maximise the points you get, these include;

Stick to your budget
Enticing rewards can easily spur consumers to stretch their budgets. Don’t fall into this trap.

Pay off your balance each month 
Avoid late fees & interest rates!

Pick rewards that match your lifestyle

Apply for multiple cards
If you have a good credit rating, you should consider applying for multiple cards that offer point sign-up bonuses. Then you can spend the minimum amount on each card to earn the bonus. 

Be aware of limits
You may earn 6% back on groceries, which sounds fantastic. But if it’s just on the first £6,000 of groceries spent in a year, you can’t possibly earn more than £360 back. Know the limits.

Treat your card like cash...use it for everything
One of the best ways to rack up rewards is to make plastic your spending method of choice. Retailers and restaurants are increasingly receptive to credit cards, and you can use them for everything from health care payments to utility payments to coffee. Just pretend that you’re spending cash, which means always paying off the full balance. Using a credit card for everything is also a good way to track your spending, because there’s always an electronic record of it. As always, only spend if you have the money. Don’t rack up debt just to earn rewards.

There are so many different types of reward cards you can get including Avios from TSB credit cards,  American Express cash back card and the Tesco clubcard credit card. You just need to find which one is right for you and your spending!

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