Credit Cards - Reward Cards
As with the cashback credit cards, the reward credit card has a high interest rate and you should only consider taking one out if you can pay off your balance in full every month, otherwise the amount you will be charged in interest will negate any reward scheme.
The loyalty and reward schemes offered by some credit card providers at the moment such as Tesco credit card enables you to receive a percentage of the total amount of interest paid for the duration of that year whereas the MBNA credit card enables you to earn points each time you use your credit card, which can then be redeemed against travel experiences.
Care is needed to make sure you understand how loyalty points are earned before signing up for a card and also check to see if points can be earned from any purchases you make or if it is only with selected retailers.