Cash Back Credit Cards ? Reward Yourself

As the competition in the UK lending market has become ever more intense, lenders and credit card providers have had to go to ever more lengths to attract customers to them. While there is a limit to how low they can go on interest rates, in fact many now go as low as zero per cent for well over six months, card providers can also seek to attract customers with loyalty and reward schemes. These basically reward you for every pound you spend on your credit card.

Loyalty schemes come in all sorts of variations and can offer you air miles, discounts on petrol, points and cash. Cash is probably the best reward you can get from your credit card provider as you can spend it where and when you like and you are not limited by the card provider.

As well as the type of reward, you should also be looking at how much of a reward you are getting. Most rewards will be at around sixty pence for every one hundred pounds you spend on your credit card but some can be lower than forty pence and others as high as eighty pence per hundred pounds so its worth shopping around and finding a card with a generous reward scheme.

You should not allow a reward scheme to distract you from your main purpose in getting the card however. For most people, by far the most important things to be looking at when they take out a credit card is the interest rate and other charges.

If you frequently have a balance left over on your credit card that carries forward from one month to the next, then a low interest rate on this will save you far more than any loyalty scheme will ever give you. Likewise, if a card has a good loyalty scheme but an annual subscription fee, calculate how much you would have to spend before you earn back your subscription fee. It is likely that you would have to do an awful lot of shopping to earn back the fee, and if you shop around you could probably find a reward scheme that's just as good but without the need to pay a fee.

If you are one of those customers who always pays off their credit card balance in full each month, then you do not have to worry about interest rates, as you will not be subjected to them and you can afford to choose your credit card based on its reward scheme.

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Why Rewards Credit Cards Could Work For You

Trying to choose the right credit card can be a tricky thing. Many people don't even realize that they have vast options when it comes to the credit card they choose to use. Most just use whatever their bank or credit union offers. What they don't know is that they could be saving tons of money by choosing to use a rewards credit card. Many different major credit card companies such as Visa, Mastercard, Discover, and American Express all offer some form of rewards credit card. Most of these companies have various forms of rewards Credit Cards, something to fit the needs of any customer. If you are going to use a credit card for all of your purchases anyways, why not get something back in return?

While living in such a fast paced world, using forms of payment such as cash or checks are not always convenient. It's not always convenient, or safe to carry around a ton of cash whenever you need to make a purchase. Plus there is always the chance that some stores do not accept checks as a form of payment due to the issues that can accompany checks. For these reasons, it has become almost essential to have at least one type of credit card to use for most of your purchases. This is especially true for those who tend to perform the majority of their shopping over the internet, television, or phone. So now that you know that rewards Credit Cards exist, how do you go about choosing the one that is right for you?

There are a ton of rewards Credit Cards available to customers who qualify for a credit card. The key is to find the one that will work in your life. You can find cards that offer gas rewards, points rewards, travel rewards, gift card rewards, or cash back rewards. All of these can be great, but if there is one that benefits you more than the others, that is the one you should pick. Many such cards offer a certain percentage for certain types of purchases. Some cards will require the purchases be made in specific categories, while other rewards cards will allow the purchases to be made anywhere. This is one of the reasons that it is important to do the proper research necessary in order to find the rewards credit card that is right for you.

Don't spend your money without gaining anything back in return. Find a rewards credit card that will offer you benefits for spending money on things that you already have to buy such as groceries, clothing, gas, prescriptions, and any other items you pay for monthly. You work hard for your money - why not get a little bit back in the form of points, rebates, gift cards, or cash back when using a rewards credit card?

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Rewards Or Cash Back ? Credit Card Choices

A very common question you hear asked these days is which is the better, cash back or rewards Credit Cards loyalty schemes. The following is a brief explanation of the cash back vs. rewards Credit Cards loyalty schemes argument:

Cash Back Credit Cards

As their name suggests, cash back Credit Cards offer customers the chance to reclaim a certain percentage of their credit card expenditure in the form of a cash back payment. This payment can be made either as a credit on the balance of the customer's credit card statement or in the form of actual cash being paid to the customer.

In most cases, the cash back being offered is in return for purchasing certain brand-named products or for using the card in particular stores. Thus, while it is true that you are getting a percentage of your purchase price back as a cash back reward, the bigger question you should be asking yourself if whether or not you would have purchased the product in that shop had you not been offered the cash back!

Rewards

By far the more popular credit card loyalty scheme is the rewards program. Here, a card provider will offer a certain number of rewards points per threshold amounts spent using the card. This way, the more you spend on the card, the more rewards you receive. Within a specified deadline date, you then need to exchange the points that you have accrued for a reward.

The reward can be in the form of air miles, household products, or any one of the other rewards usually set out in a catalogue sent to the card provider's customers. The major difference between the rewards loyalty scheme and the cash back loyalty scheme is that the rewards scheme usually works on the amount you spend, not the product you buy.

Advantages of the Reward Schemes

A credit card with a fruitful reward scheme is more common, and often more valuable, than the cash back scheme because the affiliated credit card company makes a certain amount of profit from its goods. Think about it, if you spend $100 in store how much did these goods actually cost the company? The profit that they make can e offered with the reward scheme of the credit card, keeping customers happy. If they only offered cash back then this may be at 50% of the reward rate.

Therefore if you can choose a reward credit card that you can use, i.e. a store where you regularly shop then the best choice in this debate must be the reward credit card scheme.

Regardless of what your personal feelings are towards the cash back vs. rewards Credit Cards loyalty schemes, if you are applying for a credit card today then it is most definitely in your best interests to ensure that you are offered one or other of the two loyalty schemes as to do otherwise could mean you missing out on a golden opportunity to have your credit card giving you something for a change!

You may freely reprint this article provided that the author bio and live links are left intact.

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How Credit Works

In order to acquire and maintain access to credit, one must have a working understanding of how credit works - namely, how credit scores are established and tracked by the three major credit bureaus.

Inquiry Myths

As discussed in "The Larry Rule," people who repetitively apply for credit are viewed with suspicion by the credit agencies. However, there are some caveats to the Larry Rule. First, multiple inquiries for the same purpose - shopping for the best deal on a home loan, for example - count as just one inquiry. Secondly, it is never harmful for you to check your own credit report - only applications for credit (not mere inquiries) count against you. Third, and most importantly, inquiry data is only kept on file for six months. So in other words, the Larry Rule has a six month statute of limitations.

The exceptions to the Larry Rule outlined above are all good news for consumers. Unfortunately, not everything contained in this article is so pleasant. For example, you may believe that your permission must be given in order for someone to check your credit. Unfortunately, this is a myth, except where it applies to employers. A potential creditor, an insurance company, a landlord, or virtually anyone else can access your credit report without your permission.

Credit Repair Myths

Many people believe that paying off debts immediately improves their credit score. Unfortunately, this one of many credit repair myths. While a paid debt is marginally preferable to an unpaid liability, the truth is that missed payments and past delinquencies are still ugly marks on your credit report, and simply paying off an old debt may not improve your credit score by even one point.

The good news is that late payment and old delinquency information will disappear after seven years. But the idea that all negative information is wiped out after seven years is another credit repair myth. The truth is that Chapter 7 Bankruptcy stays on your record for 10 years, and unpaid judgments can potentially remain on your credit report forever.

Another popular myth is that the act of closing your Credit Cards is good for your credit score. This myth is perhaps the most painful, as many people who close open accounts have difficulty opening new ones in the future. The truth is that open, active, and up-to-date accounts help your credit. Unused credit capacity (i.e. available credit) is a positive factor in determining your credit score.

Credit Counseling Myths

Credit counselors and debt management services have received a bad name over the years, and much of the negative publicity has been deserved. It is, for example, a myth that you can simply pay a company to "fix your credit." Any firm that claims to perform this hands-off service should be avoided.

But there are good, reputable credit counseling and debt management services who truly do help people. And despite the myth that using such a service inevitably hurts your credit, the truth is that many of these companies are able to reduce their clients' debts and maintain or improve their credit scores at the same time. When considering a credit counselor, look for firms that have these dual goals, not companies that focus solely lowering your liabilities.

Sincerely,

James

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Advanta Business Credit Cards: Is Advanta Right For Your Business?

Advanta opened for business in 1951. Its founder, Jack Alter, ran the company from a spare bedroom of his home. Today, more than 50 years after its initial start, the company has grown into a large corporation, specializing in Credit Cards for small business owners. If you have a company and are thinking about getting a credit card to help with finances, Advanta is one of the options you'll find. Here's a closer glance at the pros and cons of an Advanta business credit card.

Made for Businesses

Advanta cards are geared to small business owners, and many of their features reflect that. Some of them are designed so that all of the company expenses can be placed on just one account. This helps streamline operations, making it easier to calculate finances. The credit lines that Advanta offers are remarkably high for the credit card industry, reaching up to $50,000. You also may have the option of including your company's name on the card.

Comparable Rewards

If you do not usually carry a balance, you may be able to take advantage of some of the rewards that Advanta offers. A number of this company's cards include a reward program. With the Advanta Platinum BusinessCard with Rewards, for example, you can choose between earning cash back or points through purchases. With the cash back plan, you'll receive up to a 5% rebate on business-related items, such as computers, electronics, gas and diesel fuel, utilities, telecommunications, and online advertising services. You'll get 1% cash back on other purchases. If you choose the point system, you can earn one point for every dollar that you spend. The points can then be redeemed for travel items or pre-paid bonus cards.

Not for Everyone

While Advanta does offer specific benefits for small business owners, applying for a credit card through them may not be your best option. Generally speaking, you'll need a solid credit background to receive one of their cards. So if you have a history of credit trouble, you may want to look at applying for a different card.

The APR, or annual percentage rate, of many Advanta cards is reasonable. However, it is usually a variable rate, fluctuating with the prime rate. The card's rate is based on the highest prime rate during a 90-day period. This may mean higher interest rates on your card, depending on the status of the economy.

Read the Fine Print

Generally speaking, it's a wise idea to read through the attached terms and conditions before applying for a credit card. The same is true for Advanta Business Credit Cards. While they offer many benefits, they may have potential drawbacks as well. The reward plans or interest rates may not fit your business needs. If this is the case, search online for other options. Many websites carry a variety of cards geared toward small business owners.

Whatever you decide, take the time to carefully weigh the options before you apply. If Advanta has what you need, apply for the card. If not, find a card that suits your business and send in an application for it. When the actual plastic arrives in your mailbox, you'll have a card that can help advance, and not hurt, the small business you've worked so hard to create.

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