Retail Reward Credit Cards | September 10

Retail Reward Best Buy Guide Read more in... Part 1: How Do Retail Reward Credit Cards Work? Part 2: How to Compare Retail Reward Credit Cards Retail Reward Credit Card Questions Got a Credit Card Question? Send your question to and we'll set our team of credit card experts to it! Most recent questions: What type of rewards can I get with a retail rewards credit card? Which shops offer retails rewards credit cards? Are retail reward credit cards the same as store cards? More frequently asked questions »

Part 3: How to Use a Retail Reward Credit Card

Follow the step by step instructions below to apply for, use and lose your retail reward credit card in the most rewarding way you can.

How to use a Retail Reward Credit Card Step by Step

1. Apply for your credit card - Once you’ve found your perfect retail reward deal you can apply online.
   
   There’ll be a form to fill out which will ask for details such as your pre-tax salary and your address(es) for the past five years – if you are applying for a credit card with a company with whom you already have a reward card or another agreement you will probably need the details of that to hand as well.
   
   The new credit card provider will then contact get in contact with you by post. You may need to provide them with some additional details – e.g. identification - and after that you’ll receive your credit card.



2. Set up a direct debitIt’s vitally important that you don’t miss any of the monthly minimum repayments on your retail reward credit card. Missing payments could lead to your rewards being swiftly withdrawn.
   
   You should aim to pay back more than the minimum to avoid interest (see point 4) so set your direct debit as close to your estimated spending as you can.



3. Spend away - Now that you've got your retail reward credit card the best way to make the most of it is to move any spending that leads to rewards on your credit card… to your credit card.
   
   Don’t let your retail reward credit card gather dust in the bottom of your purse.



4. Don’t pay any interest - If you pay interest you’re eating into your retail rewards so try to avoid it at all costs. There are a number of ways to ensure against this.
   
   First, avoid letting your credit card balance roll past the interest-free period at the end of the month and accruing interest. Set up a direct debit that you know will cover the amount or make a date in your diary to check the account.
   
   Second, avoid confusing yourself - and your bank balance - by trying to take advantage of too many special offers at once.
   
   For example, say you have a 0% purchases deal at a specific retailer but you also make a large purchase with a different retailer. The 0% balance will usually have to be paid off in full before you can even make a dent in the higher-interest purchase so in theory it could accrue interest for months.
   
   Finally, avoid high-interest transactions without an interest-free period. These will usually include cash advances - including cash withdrawals at an ATM and cashback at the till -, balance transfers and all gambling transactions but make sure you check your credit card's terms and conditions.



5. Collect your rewards - This is the fun bit and doesn't need much explanation except to say that not all points systems are created equally. You'll usually get more for your money when you trade in points for retail rewards or discounts than cashback, for example.



6. Get rid of your credit card when it becomes unrewarding - Know when your retail reward credit card's offers end and get rid of them after that or when you stop using them.
   
   There's no point having a credit card you don’t use or look at, it makes you more vulnerable to fraud and you could have to pay a dormancy fee if you leave it for a long time.
   
   It's not enough to just cut up the credit card either, you'll need to contact you card provider to let them know that you're leaving.

Retail reward credit cards