With reward credit cards you can earn from your purchases. One of the best things about reward credit card is that this. When you have cash back credit card this is especially the case because with every pound you spend on your card, you get a corresponding point. When you have collected these points, you can either exchange it from a credit card’s redemption shop or you can use the cash to buy any products or anything you like. Furthermore reward credit cards often offer you rebates with every purchase that you make. This means that every time you buy an item a certain percentage is given back to your account. And similarly to cash back points, rebates can be used to make new purchases or pay off your credit card balance.
However there are some disadvantages of reward credit cards. They have a very high annual fee. This is why it is important to find ones with low annual fee or no annual fees at all. Moreover aside from annual fees, interest rates on reward credit cards can also be very high. Most reward credit cards come with variable interest, so the rate you’re paying today can become really expensive in time. What you have to make sure of is you don’t get caught out if when you first get a reward credit card you are offered really low introductory rate but rises dramatically once the introductory period has expired. So if you are thinking about getting a reward credit card make sure you read the terms and conditions this way you will not have any unexpected surprises a few months after receiving it.