Most credit cards will come with some sort of benefit or reward scheme to entice you to use it. “The better the reward, the higher the cost” is generally a good way of explaining the “string.” For a rewards scheme to really be all that it can be, a more than reasonable amount of money must be available to spend. As a result, the better rewards schemes come on credit cards with higher interest rates or fees, sometimes both. You may even see the grace period on your contract being shortened to a period of mere days to encourage active use and repayment.

If money is no object then a credit card with a better rewards scheme could be more beneficial to you than saving money on excess interest. A lot of online shopping sites will offer incentives to shop with them as well and combined with the card incentives, there is the potential for a lot of shopping! And a lot of rewards!

In fact, the higher your disposable income, the more suited to you are credit cards with the rewards schemes. Because the interest rates charged are generally higher to get the better rewards, the more time and money you can dedicate to using your credit card for everyday transactions, the greater your rewards are going to be. Remember to use your rewards credit card for purchases you can repay before the interest-free repayment period expires, this way you are essentially being “paid to shop.”

There are all sorts of rewards you can earn through using your credit card. Many schemes offer points towards air travel and accommodation. Many more give away whiteware and appliances when enough points have accrued. How about the ones that give you vouchers to spend at your local grocery store? Or a trailer load of goodies for Christmas if you spend over a certain amount before time? Beauty spa trips, casino adventures, thrill seeking activities, dinners and beds are just a few of the hundreds of different rewards available to reward-based credit card users.

Some, however, will delete your points every 6 months, so this can make it hard to earn any substantial amount if you are just a casual credit card user. Others will store points for up to two years, while still yet others never remove any points from you for your entire life!  Look at all the terms and conditions of your credit card rewards scheme closely to see if it really is the best for your shopping needs.

By Jasmina