| There are many credit card deals that | | | | An alternative to cash back rewards is a |
| are aimed at people with a lot of debt | | | | point earning system. Each pound spent |
| to manage. These deals offer 0% balance | | | | equates to a certain number of points. |
| transfer rates and low long term | | | | An example of a points scheme is the |
| interest rates to credit card customers. | | | | Nectar scheme, one of the largest in the |
| But people who pay off their balance in | | | | UK. Like supermarket loyalty card points |
| full every month do not gain a lot from | | | | schemes, credit card points schemes |
| those deals. Those people would be | | | | allow cardholders to exchange their |
| better off shopping around for a credit | | | | points for vouchers, cash or discounts |
| card that offers a reward. There are | | | | on goods and services. |
| several reward schemes to choose from. | | | | Other Rewards |
| Cash Back Rewards | | | | Some cards allow customers to apply |
| Cash back rewards are rewards where | | | | their points to other rewards. For |
| credit card customers get a cash rebate | | | | example, the GM credit card allows you |
| that is linked to the spending on the | | | | to save your cash back to apply to money |
| card. Usually this will be a percentage | | | | off a car. Some credit cards allow |
| of the amount spent, anywhere from 0.5% | | | | members to use their points to book |
| or more depending on the card. Some | | | | holidays, pay for flights and buy wine. |
| cards offer a rebate of £1 for every | | | | And one credit card offers a concierge |
| £100 spent, others offer as much as | | | | services, multi-trip travel insurance |
| £3. This soon adds up. This is paid at | | | | and executive lounge pass. |
| different times. This can be an | | | | What To Watch Out For |
| attractive reward for people who put | | | | Many of the reward cards have high |
| large balances on their cards and clear | | | | interest rates compared with the 0% and |
| them each month. | | | | low interest deals. This should not |
| Earning Air Miles | | | | matter for people who clear their |
| Many credit cards also allow cardholders | | | | balances in full each month. However |
| to earn air miles. Again this is linked | | | | people who do not clear their balances |
| to the spending on the card. Cardholders | | | | in full but who still want to benefit |
| earn a specified number of points for | | | | from the rewards will need to be |
| every pound spent. These can then be | | | | careful. Many cash back reward cards |
| applied to travel with major airlines. | | | | have a cap on how much cash back a |
| Some airlines, such as British Airways, | | | | cardholder can earn each year. |
| BMI and others, have their own points | | | | When choosing a reward card, look for |
| schemes. Others use the international | | | | the one that offers the highest reward |
| Air Miles program. Air Miles can also be | | | | or the one that will give rewards that |
| used to qualify for other airline | | | | are useful to you. Air miles are only |
| rewards such as upgrades to airport | | | | useful if you go on holiday, while |
| lounges and so on. Other types of travel | | | | discount vouchers can be used in a range |
| rebates can also be earned. | | | | of stores, so you will easily find one |
| Earning Points With A Credit Card | | | | that is useful for you. |