What Are reward credit cards?
Reward credit cards offer incentives for repeated use. There are three distinct types of reward card:
Airmiles credit cards
These cards provide points through either frequency of use, or use in a specific sector or outlet, and the points accrued can be exchanged for flights, car hire or hotels. According to the Airmiles website, spending £500 per month on your card will net you in the region of 750 points per year. These points amount to a flight from London to a major European city - View our Airmiles credit card comparison table or our guide to Airmiles credit card guide.
Cash back cred cards
A cash back card gives you a percentage of money back from the cost of any purchases that you make.
Think twice before applying for a cash back card. If you don’t have the means to pay off your balance in full each month then you may get spiked by relatively high interest rates. If you are unable to pay off you credit card balance in full each month then a 0% balance transfer or lifetime balance transfer credit card may be more suitable.
Reward points / loyalty credit cards
These include supermarket credit cards such as the Tesco Clubcard or Nectar credit card for example. These cards reward you with loyalty points when they’re used in specific outlets, which you can use at a later date to fund purchases and gain discounts.
If you would like a charity to benefit from your spending, there are a number of charity credit cards that now incorporate that function. View our guide to charity cards for find out the best way to give.
For help and more information on which is best card for you read our useful reward credit card guides.
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