Reward credit cards - going shopping with extra benefits

13 May 2013 - James Larkin

Reward credit cards  - going shopping with extra benefits

Using a reward credit card offers you a whole range of extras, because every time you use it you take part in reward schemes which make spending money more worthwhile, and thus make this type of a credit card a particular attractive way to pay.

What is the difference of a reward credit card to a traditional credit card?

A reward credit card is a traditional credit card which one can use to go shopping worldwide, to use at cash machines, to benefit from high security, and which gives you an agreed-upon credit line.
Credit cards are more likely to be accepted than other plastic money as it offers higher security: payment comes from the card issuer are not from the client who will only be invoiced later.
In addition to a traditional credit card, the cardholder has the possibility to collect bonus points, which he later can redeem against air miles and discounts for services and goods.

Who can get a reward credit card?

Everybody who can have a credit card has the option to apply for a reward credit card.

What does one have to consider?

When applying for a reward credit card one should, exactly as when choosing any other credit card, check the fees and interest rates.    But, when opting for a reward credit card, it is also worth first thinking if one is actually going to spend enough money to make the best out of the reward schemes, as a reward credit card will usually cost a little more than other cards.