Consumers can benefit from rewards based credit cards

One popular finance website has recently highlighted the benefits of rewards based credit cards, stating that many consumers could benefit from having these credit cards providing they use them properly. Officials from the site, Confused.com, said that in the current climate many people could benefit from effectively being able to get something for nothing.

With rewards based credit cards consumers are able to earn points, rewards, or cash back when they make purchases on the card, and there are various different rewards based credit cards to choose from offering a choice of different rewards. Some of the rewards available with these credit cards include air miles, points towards discounts, vouchers, and more, as well as cash back.

Those that use these credit cards need to ensure that they clear the balance in full each month otherwise the interest that they pay on their balance could by far outweigh the rewards that they earn for making purchases on the card. However, by repaying the balance in full each month no interest is charges and customers can effectively get something for nothing by earning their rewards.

The level of rewards offered on these cards can vary depending on the card and provider that you go through, and rewards can only be earned by making purchases on the card and not for cash transactions and withdrawals.

A Confused.com official said: “Using a reward based credit card can be a great way to earn incentives like cash back, flights and shopping vouchers.  Our findings show that it is still possible to get something for nothing and that savvy shoppers really can be rewarded for using a credit card, with incentives that all the family can benefit from.  Customers who are able to pay off their balance in full each month are likely to benefit the most from a reward card, otherwise the benefits could be outweighed by interest charges.  For customers who find it harder to do this, a zero percent purchase card may offer a more suitable and beneficial proposition.”

Tags: Credit Cards, Credit card cashback, interest, rewards, points

Insurance premiums could fall for those with penalty points

In the past UK motorists that have clocked up penalty points on their driving licences have seen the cost of their vehicle insurance premiums rise quite considerably as a result of this.

However, according to recent reports from insurance companies points that have been accrued through speeding will no longer result in rising premiums, as speeding will no longer be viewed by insurance companies as signifying that the driver is a greater risk on the roads.

Insurance companies have revealed that points accrued through speeding have become so common that there is little point viewing these drivers as a greater risk on the roads. This means that many UK drivers with points on their licence as a result of speeding may find that their insurance premiums start to fall. Some insurance companies have announced that those drivers with up to nine points on their licences will now be treated as those without any points in terms of insurance premiums.

In the past, these drivers could have seen their car insurance premiums rise to four times the amount of standard premiums. Swinton Insurance has been the first to make the announcement about the fall in insurance premiums for those with points, and it is expected that other insurance firms are set to follow in the footsteps of the insurance giant.

An official from Swinton Insurance stated: ‘Penalty points used to be the yardstick for dangerous drivers, but with up to 10million drivers collecting them, they are so common place that they have almost become pointless. We will be looking at each driver as an individual and not automatically upping the cost of their premium if they have six penalty points on their licence.’

Tom Smith
4th June 2007

Tags: cheaper, collect, discount, speeding, dangerous, car, penalty