Credit Card Reward Schemes

Our Online Card Buys *

	Typical APR Variable	Max Int Free
	13.9%	56 days
	13.9%	56 days
	14.9%	56 days
	14.9%	56 days
	14.9%	56 days
* Based on Lowest Standard Rates and is not a full search of the whole market

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You may think credit card reward schemes are a great idea, a way of getting something extra while youre using your credit card. On the other hand you may think credit card reward schemes are an insidious way of trying to persuade us to spend more on our plastic. Theres perhaps a grain of truth in both arguments.

Credit card reward schemes work in a simple enough way. Spend money on the credit card and youll be rewarded either in points, which you may use to redeem gifts, flights, holidays etc., or in cash through a cashback arrangement.

If you want to take proper advantage of one of these credit card reward schemes you need to make sure that you are disciplined in the use of your credit card. If you dont pay off the outstanding amount every month youll find that whatever reward is on offer will be dwarfed by the interest youre paying out.

Cashback cards tend to offer a better return than cards offering points (however, the points are dressed up and whatever fancy name they go by). Do all your spending on your cashback credit card and not only will you have extra protection thanks to the Consumer Credit Act but youll also be earning money back for yourself.

The best points cards among credit card reward schemes are those in which the reward on offer is directly linked to the card provider. An example here is the GM card which allows you to points that will give a discount against buying a new car

Want a card that gives rewards? Use our comparison tool to search the right card for you.

Last Updated: May 2007 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.