The 8 Things You Need To Know About Shopping and Reward Point Credit Cards

March 25, 2012 by  Filed under: Credit 

There are many different credit cards available all with different terms and conditions. In addition there are a number of reward point cards that offer you the opportunity to build up points to redeem at various shops. These are sometimes referred to as shopping cards.

How does a reward point card work?

A reward point card works in exactly the same way as any normal credit card. You use it in exactly the same way. Each month you will receive your bill and will have to pay at least the minimum amount off the outstanding balance.

The main difference is every time you use a reward point card you will get points or cash back which can be used to obtain vouchers or be redeemed at certain shops.

Do all credit cards offer points or cash back?

The simple answer is no, although in some cases your existing card may allow you to register for the scheme operated by the issuer.

Can I use a reward point credit card and my existing shop’s own loyalty card?

Yes. The transaction when using a reward card is handled in exactly the same way as any other transaction.

With reward cards issued by the banks operated by major supermarkets, you may get a higher number of points for using the card in that particular supermarket than you would using it in any other shop.

Are there restrictions on where I can collect points?

It depends on the card. With some, you will only get points in certain places. A promotional sticker near the entrance or till should show that the shop is participating in that particular scheme.

Will I get points if I withdraw cash using my card?

No, points are not given when drawing cash, as this is a pure banking transaction. You should also remember that drawing cash will attract interest immediately even if you pay your bill in full each month.

Are there restrictions on how I spend my accumulated points?

Yes. Depending on the issuer, often points can only be spent in certain shops or on certain services. With some reward points you may be able to reduce the bill at the checkout at certain shops.

How much does it cost to take out a reward point credit card?

Usually the cost is exactly the same as a normal card from the issuer.

Do all banks offer reward point credit cards?

No. There are some banks that offer a number of different credit cards and only some of these are reward point based.

Some issuers will automatically offer rewards on shopping credit cards whereas with others you have to register to join the scheme. There should be no discrimination in the issuer’s normal lending policy if you apply for points schemes credit cards. Remember to read terms and conditions as well as compare rewards before signing on the dotted line!

Article Source:
http://EzineArticles.com/?expert=Cary_L_Ryder

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!


You must be logged in to post a comment.

Prev Post:
Next Post: