This is an American Express sponsored post
When you take out a credit card, you will often be told about reward schemes and incentives to try and entice you into a deal. Many of us are somewhat hesitant, believing that such offers may be a little too good to be true and while it is always wise to remain frugal and cautious when it comes to taking out a card, there are several ways you can make sure such reward systems really do work in your favour.
Always bear in mind that however great the rewards may be, it is still a credit card and all monthly repayments must be met. Just like you should ensure the interest rates and payment schedules work for you, see exactly what reward schemes are on the market. You can find deals that offer everything from cashback and store credit to redeemable points, vouchers and gifts, so make sure it is a system that fits your needs and interests.
Do your homework
By keeping an eye out in advance so you know which outlets support the schemes you have signed on to, you can be a savvy shopper and maximise the opportunities to redeem rewards. It doesn’t take long to adjust your shopping habits to incorporate as many of the relevant shops and businesses as possible into your everyday spending routine.
Another good way to make your points go further is to collectively save them up with your partner and redeem them together, allowing you to treat yourself to bigger rewards. With the Nectar Card from American Express for example, in addition to your own you can also take out a Supplementary Card for a loved one, allowing you to stack up even more points in a shorter space of time. As always of course, terms and conditions apply – click here.
Representative example: Representative 18.7% APR variable. Based on annual fee of £25 and assumed credit limit of £1200. Interest rate for purchases: 19.9% p.a. variable.
Applicants must be 18 years old or over. Approval is subject to status and terms and conditions apply. For full terms and conditions call 0845 600 5210 or visit www.americanexpress.co.uk/
Boost your budget
By saving up rewards through your day-to-day spending, you can choose to utilise them as and when they are most needed. Say for example a birthday is coming up or Christmas is just around the corner; rather than blow the budget you need for weekly shopping, redeem your build-up of points etc. and take the financial stress out of your purchases.
Everyone loves a good treat and whether it is for ourselves or a loved one, we all deserve that something special from time to time. Rather than dip into your bank balance however, why not simply use accumulated rewards? You can splash the cash and enjoy the things you like without feeling guilty about actually parting with any extra money.
As with any card, the most important step is remaining in control of your repayments to avoid slipping into unmanageable debt. After all, rewards are of little use to you if you cannot afford to pay your bills. The good news is that according to Mindmetre research 59% of people* surveyed in the UK are less worried about their personal debts than a year ago and 60% are working to reduce credit card related problems, meaning we are at last becoming more conscientious when it comes to our finances, so that benefits like reward schemes can – as they should – continue to benefit the consumer.