Financial Services > Credit Cards > Cashback and Reward Cards

Cashback and Reward Cards

Credit cards that feature loyalty schemes may be worth considering if you are able to pay the full balance on your card off each month, as you get greater protection.

Cashback schemes are designed to credit your account with a certain percentage of the amount you spend each time you use your card - the more you spend on your card the more money you receive back.

There are, however, some checks that should be made before signing up for a cashback credit card. Firstly check whether cashback is offered on every purchase or only on purchases made through selected retailers, and secondly, check whether you get instant cashback (your account is instantly credited at the time of each transaction) or whether you will receive the money on a yearly basis in a lump sum.

Loyalty/reward schemes offered by some credit card providers enable you to earn reward points each time you use your card. Each purchase racks up bonus points if they are made within a certain time limit, while additional points may be available when you shop at partner stores/sites.

Before choosing a reward card, it is important to:

  • Check how points are earned, how much they are worth and how and where they are redeemable.
  • Remember that cards with good loyalty schemes tend to have relatively high interest rates – (if you don’t pay the full balance owed each month, a card with low interest introductory offers on purchases/balance transfers may be more suitable).


BACK TO ADVICE INDEX >>