After getting into a bit of a financial mess when I was younger thanks to taking on too much credit without any proper financial advice I am wary of taking on any form of credit, however, having a credit card and using is sensibly can make you better off with reward cards.
The premise is simple. Spend on one of these reward cards and they pay you – some of these cards even pay you cashback. Do it right and you can earn £100s worth of goodies each year, at no cost. If you’re debt-free and pay off every month, you might as well get paid to spend but you do need to be strict with yourself and ensure you pay back the balance EVERY month to avoid interest fees.
When I worked at Tesco I had the Tesco Clubcard Credit card which at the time offered two points instead of one, as well as being interest free. Paying it off every month on payday earned me lots of extra Clubcard points which I then used to pay for Christmas or on their Clubcard Rewards to get cheap holidays / days out. If you are a loyal Tesco shopper, although they don’t offer 2 points for every pound anymore, the rewards are still good as you can earn five Clubcard points for every £4 you spend on it in Tesco including Tesco petrol and one point for every £4 spent elsewhere.
Credit cards such as the TSB Avios card give you reward points which you can then spend on flights, hotels, and days out etc or you can opt for cards such as the American Express* Platinum Cashback Everyday card, which is the top fee-free card, especially if you’ve big spending to do in the next few months, as it has a great introductory rate, then tiered ongoing cashback.
For frequent travellers it is worth looking into cards that reward you in airmiles but part of the choice depends on which airlines you prefer and their availability, as often the big gain comes from using credit card points along with points from frequent flying.
If you are looking to get a credit card, I recommend you look at the Money Saving Expert as it contains lots of valuable information about which cards offer the best deals and pitfalls you need to look out for.