Credit cards reward spenders
Whether you're after cashback or free flights, you could bag attractive rewards by paying with plastic.
To sweeten credit card offers many lenders have adjusted reward programmes to create new types of benefits and promotions for the most common types of purchases, such as weekly shopping and petrol.
Some lenders are even rewarding cardholders who pay with their cards at specific types of merchants including energy companies and specific retailers.
While reward cards can be a good option, they're not for everyone.
What to look out for
There are many advantages to having a rewards card. Some, if used correctly will earn you hundreds and even thousands a year. It’s quite simple, if you spend on the card you will earn money and it will cost you nothing.
Sounds like a good idea right? Well what many fail to realise is that rewards cards only reward diligent consumers. Taking advantage of these cards requires disciplined spending - if you’re not careful you may end up paying a lot more than you bargained for.
What isn't advertised is that lenders can strip away rewards for a number of reasons and there may be hidden fees. You may also face some restrictions when using your bonus miles.
This can include anything from seat restrictions and blackout dates to restrictions on where you can fly. Make sure you check with your lender before booking a hotel somewhere.
The incentive for credit card companies to offer rewards is that they can charge upwards of 20 per cent APR and higher annual fees. That is why it is vital that you only purchase what you can afford so you can pay off the balance at the end of the month.
What’s on offer?
Supermarkets have some attractive options for repeat customers. When you spend on your Sainsbury’s card you can earn double nectar points.
For savvy card users, the perks can be fantastic. Some cards have introductory offers that can give you free flights, cashback and even free points.
The Miles & More American Express Platinum card gives you 1,500 welcome reward miles and with theAmerican Express Platinum card you could earn up to 5% cashback.
If you are particularly diligent, the American Express BA Premium Plus card rewards you with 1.5 air miles with every £1 you spend.
With the Virgin Atlantic White card you can earn up to 3,000 flying club miles with your first purchase and the bmi American Express credit card offers you 20,000 destination miles when you spend £250.
Lloyds TSB 's Air Miles Duo credit card ensures that when you spend £1500 in the first three months you will earn enough miles for two return flights from London to destinations in Europe.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
Loans - FAILING TO ADHERE TO REPAYMENT TERMS MAY RESULT IN PENALTY CHARGES AND AFFECT YOUR CREDIT HISTORY. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Rates may depend on your individual circumstances
Compare cheap loans:
Fill in our quick form to get a quote
