Credit
Cards And Their Rewards
by: Joseph Kenny
A lot of credit card
companies offer incentives to people with large debts. These include
0% balance transfers, 0% purchase rates and long term low interest
rates on balance transfers. But people who clear their balances
regularly do not benefit from these rewards. After all, if they
pay off their balances each month, they are not paying interest
anyway. So how can these people gain something from using their
credit cards? The answer lies in credit card reward schemes.
What Are Credit Card
Reward Schemes?
Credit card reward schemes
are schemes that offer bonuses or incentives to people when they
spend on their credit card. These schemes are usually linked to
the amount spent, so this is a good option for people who put their
monthly spending on their credit cards. There are a number of credit
card reward schemes to choose from.
Earning Nectar Points
With Your Credit Card
One of the best known
reward schemes is the Nectar points scheme. This started as a loyalty
card scheme, with Sainsburys, Debenhams and BP as the principal
players. There are now a number of retailers who accept and issue
Nectar points. There is also a branded Nectar credit card (run by
American Express) which allows card holders to earn Nectar points
when shopping for a range of goods with the credit card. Card holders
who also have a Nectar loyalty card can earn up to 4 points for
every pound spent. These points can then be used for shopping, entertainment,
travel and more.
Other Credit Card Points
Schemes
Many other credit card
companies also offer their own proprietary points schemes. Again,
these allow card holders to collect a set number of points for every
pound spent. These points can then be used to claim discounts on
food, wine and travel; travel insurance; clothing; high street discount
vouchers; or exchanged for cash. Many credit card companies also
give cash back rewards. These consist of a rebate of a certain percentage
of the amount spent on a credit card per month or year. There is
usually a cap on the amount of the rebate.
Reward Yourself For Travelling
Another common points
scheme is the air miles scheme. This allows card holders to earn
a set number of miles linked to the amount they spend on the credit
card. Card holders can have separate air miles accounts or can gain
more benefit by applying for one of the many credit cards that offer
air miles as their reward. With air miles credit cards, credit card
holders can also benefit from balance transfer rates and other incentives.
Many air miles credit cards also offer additional discounts or upgrades
on travel products.
Other Credit Card Reward
Schemes
In addition to these
credit card reward schemes, there are credit cards that offer specific
incentives to consumers. These include earning money to help with
the purchase of a car. Credit card holders can also consider using
their credit cards to give to charity. There are a number of charity
credit card schemes backed by major banks.
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