Cashback credit cards are designed to credit money back each time you spend on your card. The amount of money you can earn back can vary from as little as 0.5% upto 2% some even as high as 5%. In addittion the more you spend on your card the more money you get back.

Cashback credit cards can be of great benefit when used correctly. If you pay off your balance in full each month, then cashback cards are certainly a great choice as you will not be paying any interest and be pocketing anything upto 5% cashback.

Before signing up for a cashback credit card, check whether cashback is offered on every purchase or only on purchases made through selected retailers. Additionally, check whether you get instant cashback whereby your account is instantly credited at the time of each transaction or whether you will receive the cashback annually in a lump sum.

What are Reward Credit Cards?

Reward credit cards are loyalty schemes offered by some credit card providers and enable you to earn reward points each time you use your card. Bonus points are sometimes credited if you make a purchase with your card within a certain time limit and additional points may be available when you shop on partner sites.

Before choosing a card which offers reward points, check how points are earned, how much they are worth and how and where they are redeemable.

In addition to the opportunity to accumulate cashback and reward points, many providers also offer special discounts on certain products and services and prize draws exclusive to cardholders.

It is worth noting that cards with good loyalty schemes tend to have relatively high interest rates so if you don't pay off the full balance each month, a card with low interest introductory offers on purchases or balance transfers may be more suitable.

For a full list of credit card providers please click here.

AA Credit Card	American Express	BT Credit Card	Capital One	Halifax
Egg Card	MBNA Europe	Sainsburys	Tesco Card	Virgin Money