Retail Reward Credit Cards

How retail reward credit cards work...

Retail reward credit cards work on the same principles as cash back cards (see cash back credit cards). However, instead of offering you money back for your purchases they give you a discount on particular goods and services, or points to redeem for certain products.

The types of rewards you can claim will largely depend upon the reward credit card you take out and the retailer or company the card is partnered with. For example, a Sony credit card is unlikely to give you a discount on your weekly shopping at Sainsbury's, but it would offer useful rewards if you love music, films or Sony branded electronics.

- What do you spend and what do you want?

Choosing a retail reward credit card should be approached with a similar discerning attitude that you would adopt on any major purchase. If you were buying a car you would want to know if it had enough seats for your family and a big enough boot for your shopping. In the same way you should look at reward credit cards and decide.

1. Will I have to adjust my spending habits to accumulate points/discounts, or can I stick to my everyday purchases and gain all the points I need?


2. Once I earn these points/discounts can I spend them on something I want, or will I have to waste them on needless rubbish?

Thankfully, there are now credit cards available offering a host of different rewards, from free CD's to money off a new car. This means that there really is a reward credit card out there to suit everyone.

The following is a list of some of the popular types of retail reward credit cards that are currently available:

• Retailer rewards
• The most common type of retail reward credit card; provided by specific companies, who offer you points that you can exchange for products and services they sell.


• Service provider rewards:
• Allow you to claim points for money off a service they provide. For example: Free broadband access, sky television discounts.


• Savings and discounts:
• Retail reward credit cards offering savings and discounts take out the competitive element of point saving and instead give you certain discounts and savings for merely being a cardholder.


• General reward schemes:
• Non-partner specific reward credit cards usually offer this type of scheme. They allow you to collect points that can be exchanged for a range of different goods and services from various high street names.

- Rules for retail reward credit cards

As with cash back cards, these cards are strictly for the disciplined. Make sure that you change the card you spend on and not what you spend. The way to reap the rewards from these cards is through earning off everyday purchases such as shopping and petrol, not from buying extravagant new items you don't need.

Once again the most important thing to remember is to pay off your balance in full at the end of every month. If you don't, you wont be getting any benefit from the card, as the cost of interest will always outweigh any potential rewards.

Compare retail reward credit cards