If you’re responsible with your spending habits and pay off your credit card balance in full every month, a reward card might be ideal for you!
In basic terms, the more money you spend on a reward card the more ‘rewards’ you’ll be entitled to. These rewards can be ‘converted’ into vouchers for shops, airlines, hotels, tickets and lots more! This means if you’re disciplined with your spending you can easily earn hundreds of pounds worth of ‘free stuff’ every year!
Reward Credit Cards don’t have to be used for high value items such as a new car or piece of furniture, they’re actually great for everyday use such as shopping in the local supermarket, buying clothes, use at the petrol station and more! As stated the more you spend the more rewards you’re likely to receive.
Here’s some great tips to remember:
Set up a direct debt – Being in charge of your financial agreements means knowing when payments are due to be made. You can make this easier by setting up a direct debt for your reward card, this helps you to automatically clear the balance each month. After all, what’s the point in getting a ‘reward’ if you’re charged interest for missing a payment! The gain then may not be worth it!
Spend normally – As stated above, spend on the credit card as much as you normally would. If you pay off the balance in full at the end of each month, you should replace all of your transactions methods and spend on the reward card to get the maximum number of rewards. Use it instead of cash, cheques, debit and other cards you may use. After all, you want to get as many rewards as possible. You can even use this type of card for work expenses too! This gives you even more power to earn rewards at no further expense to you. (If your Budget allows)
Check the rewards – Not all card providers offer the same ‘level’ of rewards, some will include great things such as flights, holidays, days out and more, while other providers may offer rewards which are ungenerous. Of course, this is where ‘shopping around’ comes in handy to understand exactly what’s on offer.
Will Reward Cards last forever? – Unfortunately, nobody can truly answer this question, it’s like asking how long is a piece of string? Of course, there is a chance that companies may cut rewards in the future, so get a good deal while you can!