A lot of credit card companies offer incentives to people with large debts. These include 0% balance transfers, 0% purchase rates and long term low interest rates on balance transfers. But people who clear their balances regularly do not benefit from these rewards. After all, if they pay off their balances each month, they are not paying interest anyway. So how can these people gain something from using their cards? The answer lies in credit card reward schemes.

What Are Credit Card Reward Schemes?

Credit card reward schemes are schemes that offer bonuses or incentives to people when they spend on their credit card. These schemes are usually linked to the amount spent, so this is a good option for people who put their monthly spending on their cards. There are a number of reward schemes to choose from.

Earning Nectar Points With Your Credit Card

One of the best known reward schemes is the Nectar points scheme. This started as a loyalty card scheme, with Sainsburys, Debenhams and BP as the principal players. There are now a number of retailers who accept and issue Nectar points. There is also a branded Nectar credit card (run by American Express) which allows card holders to earn Nectar points when shopping for a range of goods with the card. Card holders who also have a Nectar loyalty card can earn up to 4 points for every pound spent. These points can then be used for shopping, entertainment, travel and more.

Other Credit Card Points Schemes

Many other credit card companies also offer their own proprietary points schemes. Again, these allow card holders to collect a set number of points for every pound spent. These points can then be used to claim discounts on food, wine and travel; travel insurance; clothing; high street discount vouchers; or exchanged for cash. Many card companies also give cash back rewards. These consist of a rebate of a certain percentage of the amount spent on them per month or year. There is usually a cap on the amount of the rebate.

Reward Yourself For Travelling

Another common points scheme is the air miles scheme. This allows card holders to earn a set number of miles linked to the amount they spend on the credit card. Cardholders can have separate air miles accounts or can gain more benefit by applying for one of the many credit cards that offer air miles as their reward. With air miles credit cards, credit card holders can also benefit from balance transfer rates and other incentives. Many air miles credit cards also offer additional discounts or upgrades on travel products.

Other Reward Schemes

In addition to these credit card reward schemes, there are credit cards that offer specific incentives to consumers. These include earning money to help with the purchase of a car. Card holders can also consider using their credit cards to give to charity. There are a number of charity schemes backed by major banks.

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About the Author

Joe Kenny writes for the Credit Card Guide, offering views on credit cards in the UK, visit them today for some great 0% balance transfer offers and start clearing credit card debt today.