Every 8.5 minutes the UK's level of collective debt, as a result of the credit crunch, goes up by 1 million pounds. This means that the average household's debts go up by 9.35 a day. As these increases take affect, more and more people are looking for ways to save themselves money. The credit crunch is affecting every aspect of daily life; for instance, food prices are going up and people are cancelling their holidays abroad left, right and centre. One, often overlooked, way of making savings, is through the use of reward credit cards. Here are just a few ways that savings can be made with these cards.
One way to make savings with reward credit cards is to apply for those offered by the major supermarkets. These cards often have reward schemes attached that help reduce the cost of the weekly shop. At present families are spending 15 more on their weekly shop than they were at the same time last year, and this is directly a result of the current economic difficulties. With such a huge increase surely any way to reduce the cost is going to be helpful.
These reward cards work by giving you a number of points whenever you use the card in-store. One of the major cards gives five points for every 4 pounds that you spend on the card. These points can be collected and then redeemed as cash off your next shopping bill. If you use the card on a regular basis then you will save more in the long run. Financial experts suggest that you put each weekly shop on the card and then pay it off monthly in order to maximise your savings. Some of these reward credit cards can even be used in a number of stores who are participating in a group loyalty scheme.
Another card that can help is a travel-related reward card, especially if you are one of the 24% who have cancelled their holiday this summer because of the crunch. With one of these cards you may still have time to book somewhere in the sun and make a saving into the bargain. These cards work by giving free Airmiles when you use it for purchases. The number of Airmiles varies; one card offers 1.5 Airmiles for every 1 you spend. Some of these cards also give rewards for having the card in the first place, one company offers 20,000 Airmiles if you spend 250 in the first 90 days; this is enough Airmiles to buy a return flight to Italy.
Cards offering free Airmiles work in a very similar way to supermarket reward credit cards, but give discounts on flights. One of the major cards, for example, gives 1.5 Airmiles for every pound spent. If you use the card to purchase a flight from the associated airline then the number of points awarded is doubled, making the savings even greater. Finally, as a further incentive, you are given 20,000 points if you spend 250 on the card within the first 90; this is enough points to purchase a return flight to Spain or Italy. As you can see, if you still want to go on holiday this year, then one of these cards can help make it possible.
It is recommend by most financial experts that you look carefully at your spending habits and your outgoings before you decide upon which card is right for you. If you have a poor credit rating it is better to work on improving your credit rating than apply for a new credit card as being declined can have an adverse effect on future applications for credit, loans, mortgages etc. If, on the other hand, you have a strong credit rating it is likely that you can already handle your financial circumstances reasonably well and that you could make savings from transferring and using a reward card.
One way to make savings with reward credit cards is to apply for those offered by the major supermarkets. These cards often have reward schemes attached that help reduce the cost of the weekly shop. At present families are spending 15 more on their weekly shop than they were at the same time last year, and this is directly a result of the current economic difficulties. With such a huge increase surely any way to reduce the cost is going to be helpful.
These reward cards work by giving you a number of points whenever you use the card in-store. One of the major cards gives five points for every 4 pounds that you spend on the card. These points can be collected and then redeemed as cash off your next shopping bill. If you use the card on a regular basis then you will save more in the long run. Financial experts suggest that you put each weekly shop on the card and then pay it off monthly in order to maximise your savings. Some of these reward credit cards can even be used in a number of stores who are participating in a group loyalty scheme.
Another card that can help is a travel-related reward card, especially if you are one of the 24% who have cancelled their holiday this summer because of the crunch. With one of these cards you may still have time to book somewhere in the sun and make a saving into the bargain. These cards work by giving free Airmiles when you use it for purchases. The number of Airmiles varies; one card offers 1.5 Airmiles for every 1 you spend. Some of these cards also give rewards for having the card in the first place, one company offers 20,000 Airmiles if you spend 250 in the first 90 days; this is enough Airmiles to buy a return flight to Italy.
Cards offering free Airmiles work in a very similar way to supermarket reward credit cards, but give discounts on flights. One of the major cards, for example, gives 1.5 Airmiles for every pound spent. If you use the card to purchase a flight from the associated airline then the number of points awarded is doubled, making the savings even greater. Finally, as a further incentive, you are given 20,000 points if you spend 250 on the card within the first 90; this is enough points to purchase a return flight to Spain or Italy. As you can see, if you still want to go on holiday this year, then one of these cards can help make it possible.
It is recommend by most financial experts that you look carefully at your spending habits and your outgoings before you decide upon which card is right for you. If you have a poor credit rating it is better to work on improving your credit rating than apply for a new credit card as being declined can have an adverse effect on future applications for credit, loans, mortgages etc. If, on the other hand, you have a strong credit rating it is likely that you can already handle your financial circumstances reasonably well and that you could make savings from transferring and using a reward card.
About the Author:
Frank Armstrong is a finance writer and has written financial based articles for a variety of websites. Read about rewards credit cards and credit cards online here.
Posts
No comments:
Post a Comment