Cashback and rewards credit cards are a great way to earn back rewards on your spending, especially for those who pay off there balance's off in full each month.
Paying off your balance's in full each month will mean you will not have to pay out any interest meaning you can get full benefit of rewards offered by the card provider.
Cashback credit cards seem to be the most popular reward, with lenders offering aything from 0.5% and up, some providers even offering as much as 5% cashback. The amount of cashback you can earn varies on how much you spend, the mosre you spend the more you earn back.
To get the most from these cards you should really pay off your credit card balance in full each month to avoid any heavy interest charges. By paying for your monthly purchases on your card, you can make money back on your spending.
Interest rates on cashback and reward cards can be high due to the rewards they have to offer. If you don't pay off your balance's in full each month then the benefits will be overweighed by the interest. you may want to consider a credit card that offers 0% interest for limited period of time or a low interest rate for the life of the balance.
Making the most of your card
To make the most of your credit card and gain the maximum cash back is for you to place as much of your monthly expense's on your credit card. The more you spend the more you can earn back, if you spend £500 a month and have a card that offer 2% cashback you will earn £120 cashback at the end of the year. Its doesn't sound like much but it's a way of making your money work harder.
Most cashback credit cards work by refunding a percentage of your entire spending once a year. This will normally be credited back into your account.
Read the small print
As with any credit card it is important to check out the details of the cash back offer. Some providers offer a good introductory rate, which is scaled back down after an initial period. Others pay more, the more you spend, or may cap the amount that is paid. The way to get the most out of this type of card is to choose one that is tailored to the way you spend.
Reward schemes
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.
Rewards credit cards have simerla APR rates to that of cashback cards so the rewards will be worth nothing if you don't pay off your balance's in full each month. The interest you will be charged wil simply wipe out the rewards you earn back. you may want to consider a credit card that offers 0% interest for limited period of time or a low interest rate for the life of the balance.
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