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