Rewards Credit Card
As the name suggests, a reward credit card gives the user a ‘reward’ every time he/she uses the credit card, examples of rewards that credit cards offer include air miles, points that can be exchanged for goods, holidays etc. Some of the reward credit cards offer similar offers to those of other credit cards, such as 0% introduction offers and other such deals. The exact value associated with reward credit cards is hard to assess as the needs and expectations are different for each user, but it is always in the reward credit card users mind that the more I spend on my reward card, the more I am rewarded by it, a somewhat dangerous train of thought. It should be remembered that no reward scheme is worthwhile unless you can pay your balance off in full each month, otherwise the interest will always outweigh the reward. Having said all that, if you actually find something you need that can be exchanged for the points you have been rewarded with for using you credit card, then you have earned it by spending, just don’t over do it.