As more and more financial companies are looking to attract as many clients as they can, new credit cards with special incentives are common these days. Among them, cash back cards and reward cards are the most popular in the UK. They can be used just like normal cards, but the idea is that each time you purchase something with them, you earn something back. Let's take a closer look at both of these credit cards.
Cash back credit cards
The way cash back cards work is fairly simple. They generate up to 3% of what you spend as cash back. This amount accumulates over time and you can get it back after a certain period, which stretches, depending on the financial company, from one month to a year.
However, with most of these credit cards you would have to spend around £1,000 a month to generate significant cash back. This means that if you're looking for fast and easy money, cash back cards are not the thing you want.
Reward credit cards
These credit cards work just like cash back cards, but instead of getting money back, you receive special vouchers and discounts according to how much you spend. The good thing with reward cards is that you may be able to get larger discounts, but the bad thing is that you can only get discounts to certain shops or products.
This is why you should look for reward cards that offer vouchers to the things you need more. For example, if you are using your vehicle for long drives each day, you'll be interested in getting a reward card that offers fuel discounts from certain gas stations.
It's up to you to decide which one of these fit you best.