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