Something for nothing is not always the case, when you are told that this is going to happen, but with a credit card reward scheme this can work but only if you use it in the right manner.

Spend more receive more

Reward are an idea way of getting something back on the amount of money that you spend on your card, receiving either points for in exchange for flights, holiday’s and the like or cash rebates, it’s all done to encourage us to spend more on the cards to make the credit card companies even bigger profits, from us in interest charges and from retailers that they charge a fee of 1% of the amount that we spend in their premises.

A cash back credit card does not suit everyone

If you are a borrower, which means that you don’t pay your debt fully each month then a reward card is not for you. The reason for this is interest that will be added to your account each month will exceed the amount of points or cash that you have made on your spending, also you will probably find that interest charges are slightly higher than the norm on these cards.

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Now to the card holders who can make these cards work to their advantage, these are the card customers that never pay interest charges. Using one of these cards instead of cash or debit cards for your everyday spending will help you to some of that something for nothing feeling that makes you feel good.

How to choose a cash back credit card

Here are a few pointers for you on how to choose a reward card, firstly cash back cards are basically at the top of the list, and this is because with cash you can buy what ever you want with it, once you get it which is usually in a lump sum each year. The best cash back cards will beat a points reward card hands down, as if you return your points for a reward item that’s all you will get, but with a cash back you might find that you will have you have change left to spend on something else.

American Express supplies the best cash reward cards on the market, with their Platinum card and Blue card, which is basically the best, as higher spending, is required on the Platinum card to gain the full advantage of the reward, this will mean spending over £7,500 to get a 2% return on every £100 spent.

You will find that the best reward cards are usually self-motivated by this I mean the card that you have belongs to a certain product seller, such as General Motors who will give you more value for putting what you earn in points, into buying a car from them. Though Tesco will only redeem 50p for every £100 spent in their stores, back into your shopping trolleys but will give you £1.65 if you want to cash in on a day out or other gifts. I will reiterate again that if you are a borrower don’t touch these cards are they are no good to you, and will cost you more than you will get.