How to pick the Best Rewards Credit Card In UK, And US

we’ve all heard of that one friend of a friend who somehow managed to pay for their five-star all-inclusive Caribbean vacation using just their credit card points and we are not jealous at all if you feel that all your credit cards are collecting little bits of lint dust in your wallet it might be time to invest in a rewards credit card from scooping some serious points to bagging the best treats start packing your bags and stockpiling sun cream because this video is your first-class ticket to getting the best rewards card for you

The Basics

How to pick the Best Rewards Credit Card In UK, And US

rewards cards work by offering you points every time you spend a certain amount on eligible transactions the amounts and what counts as eligible will differ between providers these lovely little points can then be redeemed for a variety of rewards and freebies like account credit gift vouchers tickets to concerts and fancy events instant shopping discounts hotel stays and even flights and upgrades however if the rewards you earn are outweighed by interest payments or account fees then the whole exercise was a waste of time so if you set up a direct debit to pay off your full balance each month then you should be able to avoid interest altogether do this and it’s a simple question of weighing up whether you’d earn more in rewards than any annual fee that the card might

Earning Point

How to pick the Best Rewards Credit Card In UK, And US

come with it goes without saying that the more points you earn per pound the better a good rule of thumb is to look for a card that offers at least 0.5 rewards on your spending to get more than this you’ll generally need to pay an annual fee some cards offer an enhanced earn rate when you use your card at certain places for example a supermarket’s own credit card will typically double the earn rate when you use your card to buy directly from them so think about how much you spend with a brand each month to get an idea of how significant a benefit that would be for you getting an additional card for a partner or family member can also be a great way to boost your points earnings just remember that you the account holder will be solely responsible for paying off the debt some rewards cards will offer sign up deals that give you hundreds or thousands of bonus points these usually require you to hit a certain spending amount within a specific time frame so carefully weigh up whether the deal is worth it some cards also give you anniversary points and those that don’t might well lose their appeal after the first year check in advance whether your points come with either an expiry date or a limit on how many you can spend ina year to make sure that you don’t lose out on any hard-earned rewards

Redeeming Points: Required Points vs Points-Plus-Pay

How to pick the Best Rewards Credit Card In UK, And US

it’s a great idea to think about how a credit card provider allows you to redeem your points generally the more flexible the program the better with a required points system each reward option has a specific value for example you’d need 10 000 points to redeem a 50 quid credit card for point plus pay scheme you can use a combination of points and money to redeem your chosen reward this system gives you much more flexibility if you haven’t quite earned enough points to bag yourself that little treat keep an eye out for promotions that let you redeem your points for more than they’d normally be worth these typically run for a short period of time or may involve brands that your card issuer is partnered with and are a great example of where rewards points credit cards trump cashback cards consider the real world value of whatever you redeem your points for if you earn one point per pound you’d need to spend ten thousand pounds on your credit card to get that 50 quid gift card yes you’re technically still getting something for free but what is that actually worth to you and could your points go further with another card or scheme

Types of credit card rewards programs

How to pick the Best Rewards Credit Card In UK, And US

when it comes to a rewards credit card always invest in the rewards card program that genuinely works for you and your lifestyle there are four main rewards programs to consider which include frequent flyer or air mars programs these were traditionally designed to earn you points and other benefits when you travel with a specific airline almost like an airline loyalty card but these days some rewards credit cards also let you earn points indirectly through everyday purchases which can then be redeemed with a number of airlines or transferred to different points programs credit card rewards programs these are essentially a credit card’s own brand rewards scheme that allows you to redeem points across a number of rewards from travel to gift cards and extra credit on Your account supermarket and retail rewards programs you guessed it we’ll earn you points and benefits at designated supermarkets and major retailers and finally cash back credit cards these rewards cards add credit or cash to your account when you hit a certain spending requirement most offer cashback as a percentage of your total spend while some providers might offer a one-time cash lump sum as an introductory offer if your credit card charges an annual fee make sure the value rewards is reward is at least equal to if not more than the cost of the annual fee most rewards credit cards will charge a transaction fee for overseas or international payments make sure you consider this fee before choosing a card especially for any rewards cards that offer more points for foreign transactions rewards cards often come with pretty high interest rates and that includes for cash advanced transactions so if you were to withdraw money from a cash machine on your rewards card you’ll likely pay a higher fee and typically won’t earn any points for this either that being said some rewards cards do offer balance transfers where you transfer existing debt to the new card and pay a lower introductory interest rate on the balance but again you usually won’t earn any points on this either

What next?

How to pick the Best Rewards Credit Card In UK, And US

the key to getting the most out of a rewards credit card is to balance the additional benefits with any additional costs and make sure the rewards genuinely work for you if you’re likely to carry a balance from month to month you’re more likely to pay more interest than you’ll earn in rewards and you should probably forego the reward scheme in favor of a low or no interest deal instead to find out more and compare which rewards card would work best for you head to finder.com UK And US. So, for more information, check this Banking Article/Post

Leave a Comment