What is a reward credit card?

Find out what advantages there could be to taking out a rewards credit card.

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Reward credit cards give you bonuses on top of your spending, like loyalty points, airmiles, and cashback. They are best used for everyday spending in order to maximise the benefits you can earn, but should be paid back in full every month in order to avoid your interest payments offsetting any rewards gained.

Reward types

Applying for a rewards credit card

Providing you’re happy replacing your day-to-day spending (be it with cash or debit and credit cards) with a rewards card, you could be in line to earn added extras on top of your monthly spend.

MoneySuperMarket’s Credit Monitor app showcases a range of credit cards to you, all of which you are likely to get. Alongside this, we also tell you the interest rate you’re likely to be offered, providing you with peace of mind.

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If your credit score isn’t particularly high, Credit Monitor also provides a service whereby personalised tips and actions are presented to you that could help you improve your score. By taking action on these, you could soon see your credit score increase, along with gaining access to a wider and more competitive range of cards.

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Ahead of selecting a rewards credit card, it’s worth thinking about the following considerations:

Repaying in full every month: The interest rates on rewards credit cards are not normally very competitive, so they are only worth it if you can afford to pay off your balance in full every month

Translating points in money: If you earn loyalty points on your spending, find out how much these points equate to, for example one point earnt being the equivalent to 1p to spend in store.

Is the spending limit realistic? If your card stipulates you need to spend a certain amount annually to earn rewards make sure this is compatible with what you actually tend to spend month-to-month. Spending beyond what is affordable can risk you getting into debt and diminishing the real value of your rewards.

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