A reward card is a credit card that allows you to earn a reward when you use your card to purchase goods and services.
The rewards you could receive by using a reward card include Air Miles, Tesco Club card or Nectar points, money off petrol or cheaper flights.
A reward card is a great way to get a little extra back from your credit card but they are only suitable for people who pay their balances off in full each month. This is because the interest charged when you run a credit card balance over from one month to the next will likely outweigh the value of the reward.
But if you pay your balance off in full each month then you won’t need to worry about the interest rate on your reward card as all of your expenditure should be paid off before your card starts charging interest on it.
This means that all you need to do is to choose the rewards that are most attractive to you. If you want cashback, or to donate to good causes when you use your credit card then please consult our cashback credit card and charity credit card comparison tables.
In any event paying your balance off each month and reaping the rewards from a reward card also means that you don’t have to worry about balance transfer credit cards or new credit cards or cheap credit cards.
