Incentives
Many credit card companies offer incentives and benefits for using their cards. Before you sign up for a card because it offers any of these features, or agree to pay for any of these features, think carefully about whether it is useful for you.
The type of incentives tend to change over time, but those that you might find include:
- Cashback – for every pound you spend on the card (generally excluding balance transfers and cash advances) you will get a certain proportion of that spend back in cash. For example, for every £100 you spend on your card you may get 1% i.e. £1 back in cash.
- Reward and voucher schemes – for every pound you spend on the card (generally excluding balance transfers and cash advances) you will be awarded a certain number of points or vouchers which can be redeemed for rewards or gifts.
- Additional warranty coverage – this may protect your goods, such as electrical appliances, bought using your credit card, for a period after the manufacturer’s warranty expires.
- Price promise cover – ensures that you will be refunded the difference if you buy an item and then find it cheaper somewhere else (including in the sales).
- Travel insurance – if you often use your card abroad it is worth looking into having a credit card that offers travel benefits such as international assistance, insurance for flight delay, or travel insurance that covers lost and delayed luggage and/or personal injury.
- Purchase Protection Insurance – covers your purchases against loss, theft or accidental damage for a specified period.
