Credit cards that reward as you spend

Cedit card rewards

Cedit card rewardsChristmas shopping can be stressful for so many reasons - the mad rush, the endless queues, and of course the expense. But what if you could actually be rewarded as you spend?

Whether it's air miles, cash back, points schemes or shopping rewards, there are credit cards out there which reward us for spending. Of course you have to be safe in the knowledge you can always repay the outstanding balance, but if you are, they can be a real perk at times like this when increased spending seems almost unavoidable.

As with most expenditure, planning is key. Take a serious look at your income and outgoings, and see if you can take on a credit card which gives you something back. And work out how much you might put on the card - especially over the festive period.

You must be realistic - there's no good in taking on a credit card you'll struggle to pay it off.

An independent financial research company Defaqto found 13 credit cards that offer rewards, where people receive monetary benefit according to how much they use the card.

Why not look into the rewards credit cards can offer, and see if they will work for you?

David Black, Defaqto's Insight Analyst for Banking, said: "If you are confident that you can always repay the entire outstanding balance on your credit card every month then it makes sense to choose a card that offers rewards. Although Christmas is an expensive time, the right type of credit card can help you earn while you spend."

He went on to say: "The key is to choose a card with the type of reward that you want and that fits your circumstances.

"However, the rewards offered by credit cards vary widely so it is important to focus on these benefits when comparing different options if you want to take advantage of the best offers available."

Defaqto highlighted the following credit cards as the ones that currently offer the most generous cash back rewards:

  • World MasterCard from Capital One
  • Platinum Cashback Credit Card from American Express
  • 123 Cashback Credit Card from Santander
  • Rewards Plus Credit Card from AA

The longest 0% introductory rates on purchases from available credit cards were highlighted as:

  • Marks & Spencer Credit Card (15 months)
  • Tesco Clubcard Credit Card (15 months)
  • Barclaycard Platinum with Purchase Credit Card (14 months)
  • Halifax All in One Card (13 months)
  • Virgin Money Virgin Purchase Credit Card (13 months)

Defaqto also said there are 19 credit cards offering air miles, 66 offering points schemes and 53 offering shopping rewards.

The group's credit card comparison tool can be used to help you find the card that's right for you.