Living a luxury lifestyle can involve a fair bit of credit card spending but many frequent credit card users are not getting the most out of their cards. A bit of smart shopping can net you hundreds of pounds in rewards, as well as providing perks that only big spenders can access. From straight-up cashback on your usual monthly spend to loyalty points, air miles and exclusive services, swapping your usual credit card for a rewards card can be very, well, rewarding. Credit companies use rewards schemes to attract high-spending customers and, depending on your spending habits, can reap you huge benefits.
However, it’s important to shop smart when it comes to switching to a rewards card. If you are unable to pay off the balance in full each month, the interest charges could amount to more than the value of the rewards you are being offered. Some also have tight acceptance criteria, annual fees and minimum spending requirements, so doing a bit of research can be beneficial to ensure that you are choosing a card which fits your needs and lifestyle. Once you have made the switch, however, very little effort is needed to reap the rewards.
There a variety of credit cards available, all with their own pros and cons. Cashback cards allow you to earn a percentage of your money back on purchases made using your credit card. TotallyMoney.com reports that you can earn up to £237.50 per annum based on a £1,000 spend per month; for those with a luxury lifestyle, there is the potential to earn a lot more. Cash has universal value, so you are unrestricted by loyalty schemes or by companies choosing to devalue the points you have accrued, making this an attractive option. However, because of this, they often don’t offer the best return on your investment and if you are loyal to a few retailers, using a loyalty-based credit card can be a better way to get the most from your money.
Waitrose and John Lewis, for example, offer you double points if you use your credit card at one of their stores, so if you shop there frequently, you can rack up points much faster and end up with a greater reward. However, your points are turned into vouchers, so you can only spend them in Waitrose or John Lewis. Cards which allow you to spend points in a variety of places often offer a lower return on your purchases, so it’s worth weighing up your options based on your spending habits. Frequent fliers may also be attracted to credit cards which provide air miles but these are also worth researching carefully; it can be difficult to actually spend your air miles to receive a free flight which is convenient for you and your travel plans.
For those who are eligible, luxury credit cards also have a variety of perks to entice big spenders to stay loyal. Personal shopping services at luxury retailers, complimentary upgrades whilst travelling and concierge services at your beck and call can all be accessed by taking out one of these credit cards. The AmEx Centurion and the Coutts World Card have some of the best luxury rewards attached, but are invite-only.
Research suggests that more and more people living the luxury lifestyle are shopping smart and using rewards cards to make the most of their money; a little bit of research means you can really reap the rewards in the long run.