There are dozens of credit card offers out there that will reward you for every pound you spend either in straight cash back to your account or in the form of reward points. Once you have accumulated enough points you can then use these against particular card features. An example of some features on offer at the moment would be to use points gained against, flights, upgrades, hotel vouchers, days out amongst many others.

These type of credit cards are only beneficial to the customer if they pay their balance off at the end of each month. If they do not make the payments then the interest rates can cancel out the value of the rewards should the balance not being paid off. Setting up a direct debit mandate with the credit card provider can be a way of making sure that payment is made at a specified date.

It can take some time to decide what credit card is the best suited due to taking on board exactly what each offer and what is going to benefit most overall. Once you have made the right choice and manage the credit card in the right manner then you will start to reap the rewards. Head of credit cards at moneysupermarket.com, Peter Harrison, says “The accrual and redemption rates can vary a lot and there’s no real transparency in what the value of each reward is. So we’re looking at rewards and aim to get research out next year.”

With these types of cards customers can earn cash back on the amount of money that they spend.  The cash that can be earned back is generally low compared to what is spent but continual regular use of these credit cards can soon see the cash adding up giving the feeling of getting something back in return.

It is a good idea, however, to make sure that you repay what you have spent on these credit cards at the end of each month so that by the time the introductory period is over you are clear to move onto another offer.  By doing this you are making sure that you are not going over to the high interest rates that are charged after the introductory period and making sure that you do indeed benefit from any cash back you have gained.

An industry insider has advised that cash back credit cards have always been popular with customers.  They are offers that the public have accepted more in the current climate but added that due to tighter conditions and the lenders not competing against each other as much there is not as much choice out there as there has previously been on offer to customers.

It is not only the credit card companies that the FSB is asking to help stop the recent closure of small business, which has been seen becoming a even more common occurance these days, but it is also asking the Government, banks, local councils and the consumers to all pitch in and help with the fight for regulation along with having more access to money and keeping the cashflow running smoothly.

John Wright the Chairman of the FSB said “With base rates at 2 per cent and falling, the Chancellor and the Governor of the Bank of England must look into capping interest rates charged on credit cards. A cap on interest rates will at a stroke not only reduce business costs but give consumers a real boost and cut the cost of borrowing. 2009 must be a year of action for small businesses. The small business sector is the sector to see the UK out of the recession. Small businesses are innovative, enterprising and flexible. But an increase in late payments, a decline in trade and poor access to finance will leave thousands facing closure in 2009. With support from the Government, the banks and others, we can all reach a destination in 2009 that takes us out of the dark tunnel of recession and onto the bright road of recovery.”

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