Rewards and loyalty schemes are a common way for chard card providers to offer additional benefits to cardholders and these schemes often offer charge card cash back, gifts or travel rewards.
One of the main ways that charge card providers compete for your custom is by offering charge card reward points.
However, when you compare charge cards it is important that you take other factors into account – not just the charge card points on offer.
What are charge cards and how do they work?
A charge card works in a similar way to traditional credit cards. You can use a charge card to buy goods and services online or on the High Street and you will receive a monthly bill detailing your transactions.
However, unlike a credit card a charge card requires you to pay your bill in full every month. You won’t pay interest on a charge card as you never retain a balance but you will usually need to pay an annual fee for usage of the card.
Why you should consider other card benefits and not just charge card reward points
When you’re shopping for a charge card there are lots of factors you should take into account. The most important are:
- Charge card fees
- Any minimum income requirements or other eligibility criteria
- Whether they suit your purpose
- Charge card cash reward, cash back, loyalty and rewards schemes
Always ensure that you fully research the charges and fees when you compare the best charge card offers.For example, many charge cards come with an annual fee which can be anywhere between £15 and £300.
Charge cards also levy fees for cash advances and overseas transactions which you should compare if you are planning to use your card for these purposes.
You should also be aware that the criteria for charge cards differ from provider to provider. Many cards have a minimum income level so you need to make sure you’re eligible for any charge card that you apply for.
In addition, make sure the card does what you want it to do. If you want a card for your business expenses, check that the card is a ‘corporate card'.
Only when you have researched these factors should you consider the charge card reward points scheme.
Card providers tempt you with a range of perks and loyalty schemes where you can collect charge card points based on your spending. You can then redeem these points for a range of benefits. These typically include charge card cash back, vouchers, gifts or travel perks such as free flights.
While the best charge card offers and rewards schemes can be tempting, it’s important that you choose a charge card based solely on its charge card cash reward scheme. If you don’t, it could end up costing you much more in the long run in fees and charges.
Once you find a number of charge cards that offer the facilities you need for the lowest cost, it's at that point that you should look for the best charge card rewards program you can get from them.
