A reward credit card works exactly like a traditional credit card. One can pay in shops and restaurants with it worldwide, it is possible to withdraw cash, go shopping on the Internet, rent cars and book events. And like any other credit card the amount of the money you spend will be only booked off your card account at the end of the month. This way one is more flexible and there is no need to carry lots of cash around. A reward credit card will also protect your purchases with a special insurance against damage and theft for some time.
But a reward credit card offers one more thing over other credit cards, as one can earn something when spending money with it. This is because a reward credit card offers either discounts on services and goods, or one can collect air miles, or take advantage of bonus point systems which one can redeem against a selection of special offers. Some reward credit cards allow you to give to charity and in some cases one can even credit the collected rewards back to one’s card account. But one should never forget that a reward credit card does not make one’s purchases cheaper and therefore should always make sure not to spend more money than one actually has.