Credit card companies advise customers to use credit for rewards
The credit crunch is having many repercussions but not all of them are bad. Just as shops are increasingly eager to tempt us inside by cutting prices and putting up sale signs, many credit card companies are also trying to persuade us to spend more.
Credit card companies advise customers to use credit for rewards
Debit card users are missing out on free money that they could accumulate by using a credit card instead.”
In fact, figures show that 89% of us are paying out more money on simple household costs than we were last year.
It isn’t particularly ethical at a time like this for credit card companies to reward us for making more purchases, but it could still be in your favour if you take advantage of these deals correctly.
The experts
Moneyexpert.com has also mentioned the credit card companies urging us to spend more on our cards in order to receive rewards.
”Debit card users are missing out on free money that they could accumulate by using a credit card instead,” the website recently reported.
“American Express has revealed that those who use debit cards to pay for everyday goods would gain hundreds of pounds in cash back if they were to use a credit card as an alternative.”
Cards widely considered good buys include the Halifax All in One Mastercard and the Marks & Spender Money Mastercard which both have no interest charges for ten months on purchases – ideal for the Christmas shop!
Virgin also recently launched a new card with a whopping 16 months interest free period.
Rewards
Bonuses are plentiful, with the M&S card you can collect M&S points even when shopping elsewhere and for every 100 points you collect you’ll receive a £1 voucher to spend on M&S goodies.
The Paypal card on the other hand is offering £20 off purchases on Ebay when you sign up and the Barclaycard OnePulse is another popular card because Londoners can get up to 5% off travel.
Speaking about the deals credit card companies are now offering, Tom Allder, Vice President of American Express’s UK arm, said: "Simply by changing the way they pay for items, people could be earning themselves hundreds of pounds of free cash."
Reports have also revealed that a household which paid for their necessities with an American Express Reward Credit Card could earn in the region of £380 in the first year of owning it.
Sound advice
If you want to save some money consider switching to a card with a long interest free period and looking into perks.
Most of us will spend in excess of £1,000 a year on household items and other purchases which we could make with our credit cards and if you’re in the business of paying off your balance every month, that could mean you were up £100 a year in M&S vouchers with the M&S card.
There are tons of other similar great deals out there, so shop around and good luck!
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