Make the most of rewards based credit cards by making full repayments
Credit card advisors have been highlighting just how effective rewards based credit cards can be when used by those that exercise sensible repayment habits in terms of their credit card use. There are a number of rewards based credit cards available in the UK these days, and amongst these are air miles credit cards, cash back credit cards, and rewards points credit cards. Often you can get additional points by using your credit card to make particular purchases, such as getting extra air miles by using your card to purchase a flight or a holiday through a particular operator.
However, experts have warned that consumers that only make the minimum repayment on their credit card balance cannot benefit from this type of card. For these consumers the best card to opt for is one that offers interest free purchases for a fixed period or one that offers a low rate of interest. Those that can really benefits from rewards based credit cards are those that tend to repay their balance in full at the end of each month. These people tend to use their card regularly, which means that they can quickly accrue rewards on the card. And by making the repayment in full on the balance of the card at the end of the month consumers can avoid interest charges, thus there will be no interest charged to counteract the rewards accrued on the card.
Experts also state that consumers could put the money that they put aside to repay the card balance in a higher interest account where it can accrue additional interest until it is time to repay the card balance. One analysts stated: "If you can be disciplined enough to use your credit card for your day to day purchases, while keeping the money aside to repay your statement at the end of each month, then it can be a win-win situation."
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