Consumers can benefit from rewards based credit cards
June 28, 2010 by Reno
Filed under News, News-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.
Tags: Credit Cards, rewards, Credit card cashback, interest, pointsA 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.”
Barclays now offers travel cards
September 17, 2007 by admin
Filed under News, News-Credit-Cards
With millions of Brits heading off on their summer holidays abroad, one major consideration is how to deal with taking money abroad.
Some people rely on cash and traveller’s cheques for spending abroad, whereas others prefer the convenience of credit and debit cards, despite the security risks associated with using your plastic abroad. However, there could be a safer alternative available, that combines easy and convenience with increased security.
Pre pay travel cards are available for consumers that want the ease and security of having a card rather than cash when they go abroad, yet do not want to risk loss or theft of their regular credit and debit cards. These cards are also useful for those that want to ensure that they do no spend more than they have budgeted for when they go abroad. Like a pre pay phone, these cards can be loaded with cash before you go on your holidays, and can be used up to the amount that you have loaded onto the card.
Barclays has now decided to offer travel cards to customers, which will be free to obtain and load with cash. However, ATM withdrawals will be charged at 2%, with a minimum £1.50 charge, and there will be a 2.75% conversion fee if it is in a different currency. A Barclay’s spokesman stated: ‘Pre-pay cards are safer than cash and more flexible than travellers’ cheques. Furthermore it helps holidaymakers budget for the spending on their trip by not allowing them to spend more than the balance on their card.’
There are travel cards available from other providers as well, and these are the Post Office, which charges a flat fee of £10 for the card and for loading, and from Travelex, which charges 2% of the amount being loaded onto the card with a minimum fee of £10.
Tom Smith
17th September 2007
Online banking is booming
June 11, 2007 by admin
Filed under News, News-Banking
Ten years ago the Nationwide Building Society started the huge phenomenon that has become online banking.
And as we reach a decade of banking via the Internet it seems that this method of dealing with finances and applying for banking services has become more popular than ever. There have been some concerns over the ease of banking fraud via the Internet, but with increasingly stringent safety measures in place and customers becoming savvier than ever when it comes to security, online banking continues to thrive.
One of the UK’s leading banks, HSBC, as reported an increase of fifty five percent in terms of its online business. According to recent figures around eighteen million people in the UK now use the Internet to deal with their finances and manage their bank accounts, and HSBC alone has received nearly two billion visits.
At a recent Annual General Meeting the chief executive of HSBC stated: “More and more of our personal and commercial customers are seeing the benefits of buying online. Our websites handled 1.8 billion visits last year and online sales increased by 55 per cent.”
He also stated that the bank was starting to move more towards interaction with customers through the Internet rather than through the branch.
A number of banks that are trying to encourage customers to deal with them online have offered various incentives and rewards such as increased interest rates on savings and bonuses – this is because it is easier, faster, and more time effective for banks to deal with customers in this way rather than through a branch.
When banking online customers can make bill payments, transfer cash, check balances, apply for services such as credit cards and loans, set up and cancel direct debits and standing order, and more.
Tom Smith
11th June 2007
Are You Paying For Your Cash Back Credit Card?
May 13, 2007 by admin
Filed under Credit Cards
The offer seems to be too good to be true. Spend money on your credit card and your provider will give you cash back on the card as part of your credit card loyalty program. The more you spend, the more cash back you become entitled to. This all sounds well and good, but if you’re not careful you may very well find out that it is you who are paying for the cash back bonus you’re getting, not your UK credit card provider.
In order for your cash back reward program to work in your favor you need to be a disciplined credit card user. This does not mean that you should not use your credit card, or only use it in certain circumstances. In fact, you really should be using the card as often and as much as you can if you want to take the full benefit of the loyalty program. What it does mean, however, is that you need to make sure that you clear your credit card balance at the end of each credit card statement billing date. If you fail to clear your credit card balance on the statement due date, and you carry-over your credit card balance to the next month, then you start to become the person paying for your cash back rewards, not your credit card provider.
The reason why it is so important that you do not carry over a credit card balance to the next payment statement date is because you need to avoid incurring any interest or fees if you want to benefit from the cash back loyalty program. As soon as you lose this, any benefit you would have got from your cash back credit card loyalty program will be cancelled out by the interest and fees you need to pay for carrying over a balance on the card. Indeed, you may well find that the interest and fees you pay each month for carrying over the balance on your credit card will exceed any cash back you would be entitled to. Unfortunately, this aspect of cash back credit cards is something that UK credit card providers are relying on in order to fund the cash back they’re offering you in the first place.
Consequently, if you are the type of UK credit card user who pays off their credit card statement balance at the end of each billing cycle, then having a cash back credit card loyalty program can prove to be very lucrative for you. However, if like 60% or so of the other users of UK credit cards you are a borrower on your credit card, then it is very likely that you should look for some form of alternative loyalty program or, more importantly, a credit card that offers you a lower monthly interest rate than your current card provider offers, as, in the long run, this is very likely going to save you more money.
If you are in any doubt as to whether or not a UK cash back credit card is for you, be honest with yourself and ask yourself whether or not you have the discipline to pay off your credit card statement each month. If the answer to this question is yes, then this card is working for you. If the answer is no, you are paying for your credit card cash back loyalty program offer – and then some.
Richard Smith
13th May 2007
More Information:
External Links:
- More cash back credit card offers from CardGuide.co.uk
- Cash Back or Rewards – You Choose
Not sure which would be the best for your spending levels? This article discusses the advantages and limitations of bothtype of credit card offers
