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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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