There is a huge range of credit cards available on the market today. From interest free credit cards and instant decisions credit cards to adverse and prepaid cards, but reward points cards are one type of card which can actually earn you money, or other privileges, if you are suitably financially disciplined.

What are reward cards?

You can find credit cards which will reward you in a number of different ways, for example in air miles, charity payments, football club donations, supermarket savings or cash.

In a reverse to the usual system, where banks make money on the interest paid on people’s credit card debts, reward credit cards are the opposite in that the user, as long as they are careful, can make money or accrue other benefits by using their cards.

Cashback cards, for instance, reward the cardholder each time they spend by paying them back a percentage of the payment made each time, often this occurs for a set period of time.

How to choose a reward card

The reward card which will benefit you the most will depend on your individual needs and interests. If you regularly visit the same supermarket for your weekly shop then it could be sensible to make use of a loyalty card which could earn you savings on your shopping.

If you support a particular football team and would like to show your affiliation then a branded credit card for favourite club could be a good idea. Most Premiership sides have affiliated credit cards which will donate a percentage of your spend to their youth training scheme.

However, in most cases the money donated will be miniscule and it may be a better idea to use a cashback credit card and donate the cash you earn to your team.

Charity and air miles credit cards work in much the same way as football cards, and you can find the best deals for these on any good price comparison website. In all cases, in order to donate without any cost to you, you need to ensue the balance of the card is paid off in full every month. If not, a lifetime balance or 0% balance transfer card may suit you better in the long run.

Cashback credit cards

While it is a very attractive idea to earn money as you spend, and some cards have a promotional periods where you may be earning as much as 5%, but it is vital to read all the details before signing up for one of these. You will find certain cashback cards have lower APRs and a better overall return, but you also need to consider how you will be using your card.

You must also remember to pay off the balance in full each month, or the interest you accrue will dwarf the cash you earn on your spending. Cashback credit cards tend to have higher APRs than regular cards so this is even more important with a cashback card. If you will have trouble paying off the interest then an interest free credit card may be a better idea.

Author Bio: At Credit Choices you can compare interest free credit cards and instant decision credit cards online. Whatever your individual credit card needs, we can help you find the best deal.

Category: Finances
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