If you feel that credit cards can become a headache, then you haven’t heard about the reward system in credit cards. Do you want to get something as a reward for every time you use a credit card to pay something?
You can get rewards of 100 pounds of cashback and bonuses. But the point is to be careful and use it with full analysis to enjoy maximum reward points and avoid being left out of pocket. You need to stay informed and keep track of every point that we are going to share just now. If you want, you can keep more than one card with you.
In the UK, American Express credit card offers more sign up bonuses. But wait, you will get to know everything about each top credit card with a reward system.
Tips for a reward credit card that you should keep in mind
- Repay the amount in full
You can set your card in direct debit to repay in full to avoid paying interest every month. If your card provider doesn’t offer such an option, then talk to them to pay off in full. However, if you are unsure of taking any such option then pick a regular credit card with a lower interest rate.
- Take notice of what reward you get offered for your card
There are two types of schemes – Cashback and Reward. Cashback works by getting a certain amount back for every pound you spend from your card. Some card providers pay your cashback once a year as annual credit and some require you to spend some minimum amount on becoming eligible for cashback. The Reward system works when you use your card to pay for flights, hotels, shopping, and eating.
- Be debt-free before taking a reward card
Before taking a reward card, you should pay off all your debts to increase your credit score. Your credit card application gets accepted based on your credit score. If you require another credit card after a reward card, then your chances can be ruined. So consider these tips beforehand.
If you have a bad credit score, then you might not be getting a credit card next time as quickly as you thought.
- Don’t use these cards for regular work
Usually, a person would use their credit cards to withdraw money but with reward cards, don’t because you would be charged with fees and interest rates even if you pay off your due amount in full. These cards are meant to reward you with points just like a debit card.
Best reward card you can find in the UK
The following credit cards offer the best reward system:
- British Airways American Express Premium Plus Credit Card for Avios earning
This card offers a welcome bonus of 25,000 Avios after spending 3000 pounds in the first three months. The earning rate is 1.5 Avios per 1 pound of spending on every type of purchase and a reward of 3 Avios per 1 pound for spending on British Airways and British Airways Holidays.
You also get a Two-in-One Companion Voucher after spending 10,000 pounds annually. The annual fee is 195 pounds for this card. APR of 76% variable and it has a purchase rate of 22.9% variable.
- American Express Gold Credit Card
After spending 3000 pounds in the first three months, you get a reward of 20,000 membership points. With this card, you get 1 membership reward point with a spending of 1 pound. Similarly, if you spend 1 pound directly with Airlines or foreign currency, then you get 2 membership reward points. 3 membership reward points are given for spending
1 pound on American Express Travel.
With this card, you get two airport lounge passes to make your experience even better and enjoyable. You have to pay annual fees of 140 pounds which will be waived off the first year. APR of 57.6% variable and you get a purchase rate of 22.9% with a credit limit of 1200 pounds.
- Virgin Atlantic Reward Card
If you make your first card purchase within 90 days of opening your card, then you get 15000 bonus points. For 1 pound spending on any everyday service, you get 1.5 Virgin Atlantic Flying Club miles. With Virgin Holidays or Virgin Atlantic spending for 1 pound, you get 3 miles point.
If you spend 10,000 pounds annually, then you will unlock the Virgin Atlantic reward. This card has an annual fee of 160 pounds. There is an APR of 63.9% variable with a purchase rate of 22.9% variable with a credit limit of 1200 pounds.
- American Express Platinum Card
If you spend 4000 pounds in the first three months, then you will get 30,000 membership reward points. Like American Express Gold card, you get 1 membership point for 1 pound spending on any purchase and 3 points for American Express Travel.
You get a Complimentary Priority Pass, access to Amex fine hotels and resorts, Centurion Lounge Access, Purchase Protection, world travel insurance on an annual basis, concierge services, Addison Lee credits, and many other incredible deals.
You have to pay annual fees of 575 pounds. It is a charge card, and hence, it has no APR, but you need to pay the balance each month.
In the Nutshell
Just keep in mind to pay off your debt before applying for reward-based credit cards. This way, you maintain a good credit score and have easy application acceptance. You indeed get easy debt consolidation loans for bad credit UK no guarantor, but you should be careful about what you are adding to your expenses.
Reward cards are best for taking the opportunity to enjoy cashback and fantastic deals. Choose the best-suited card according to your preference. Just keep in mind the points we discussed with you first hand.