How Do Retail Reward Credit Cards Work?
Retail Reward Credit Card Best Buys
Retail Reward Credit Card FAQ's
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Retail reward credit cards are the Nectar loyalty cards of the credit card market place - giving cardholders a little something back on all their spending - and yes, there is even a Nectar credit card!
Retail reward credit cards are no different to standard credit cards, except for the fact that instead of earning nothing on your spending, retail reward credit cards give you points for all your card purchases - and not just when you shop with the named retailer!
What are retail reward loyalty schemes?
Retail reward loyalty schemes are set up by retailers or companies.
Loyalty schemes are way of getting and keeping business. If you have a Boots Advantage card for example, you're more likely to buy your toiletries and cosmetics from Boots - and earn some Advantage points - than go to Superdrug and earn nothing.
What do retail reward credit cards offer?
Retail reward loyalty schemes set up in partnership with a credit card issuer - 'retail reward credit cards' - offer the added bonus that not only can you earn loyalty points with the named retailer, but you can actually earn points on all of your spending - wherever you choose that to be.
For example, if you have a Nectar loyalty card, you'll know you can only earn Nectar points at selected retailers, e.g. Sainsbury's and BP. With a Nectar credit card you'll not only be able to earn Nectar points at Sainsbury's, but you'll also be able to earn Nectar points at Tesco or Asda too!
Plus, when you do shop at Sainsbury's - or any other Nectar sponsor - you'll be able to earn even more Nectar points for using your Nectar loyalty card and Nectar credit card together.
Nectar isn't the only loyalty scheme to offer a retail reward credit card; in fact there are well over 10 different retail reward credit cards available today - including cards by Vauxhall and Saab, BMW, Mini, Amazon, Virgin, Sony and AOL.
Do retail reward credit cards vary?
Yes - just because each retail reward credit card offers you points for your spending, doesn't mean you'll be getting the same number of reward points per pound you spend, or that you'll need the same number of points to get your hands on your first free gift.
Some retail reward credit cards offer very handsome payouts, the GM Card for example is the top reward credit card available - beating even the payouts offered by cash back credit cards - by at least 3 times!
However, some retail reward credit cards are actually a bit stingy with their point payouts and worsen the benefits for cardholders by asking for tonnes of points just to claim a free key ring.
Aside from the actual point schemes on offer, retail reward credit cards also vary because they are run in partnership with different retailers or companies.
This means that the actual rewards you can claim will be very different from one retail reward credit card to the next. Also, the shops or companies you can earn extra points with will depend upon the retail reward credit card too.
How do I earn retail rewards?
- Credit card spending
The main way to earn retail rewards is to arm your wallet with a retail reward credit card and then remember to use it for buying stuff as much as possible.
The more you spend on a retail reward credit card the more loyalty points you will earn.
Remember with most retail reward credit cards you are not just limited to a select shop or number of shops where you can earn points - points will usually be awarded on all credit card spending - even when you spend with a rival company!
- Bonus points
Some retail reward credit cards offer bonus points when you first open the account or when you first use the credit card to pay for a purchase.
Bonus points can be a great way to kick start your point earnings, and are often enough to claim your first free reward too!
- Loyalty spending incentives
Retail reward credit cards that are partnered with one particular retailer or that are part of a particular loyalty scheme will often award you with extra points when you spend money with them and their partners.
For example, the Nectar credit card when used in conjunction with a Nectar loyalty card at Nectar sponsors (Sainsbury's, BP, etc..) will earn you double Nectar points.
What retail rewards will I get?
The rewards on offer will vary between retail reward credit cards and is often dependent upon the particular retailer or company the credit card is teamed with.
For example, the AOL credit card allows you to redeem points for AOL broadband subscriptions, whereas the GM Card offers money-off a new Vauxhall or Saab car - quite a considerable difference!
- Which retailers and what rewards are currently available?
Currently, the retail reward credit cards available, and their related rewards include:
GM Card - offering money-off a new Vauxhall or Saab car
Nectar Credit Card - offering Nectar points (for the standard Nectar stuff!)
BMW Credit Card - offering prize draw entries to win exclusive BMW goodies!
Mini Credit Card - offering prize draw entries to win exclusive Mini goodies!
Egg Credit Card - offering cash back and discounts at selected online retailers
Amazon - offering gift certificates to spend at Amazon.co.uk
SonyCard - offering Sony products
AOL - offering AOL broadband subscription
Virgin - offering Virgin discounts
MBNA - offering a range of rewards, including travel, entertainment and shopping.
Compare retail reward credit cards
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