Credit cards can make Christmas spending financially rewarding

With the expense of Christmas fast approaching now is the time for people to prepare for how they are going to pay for it.

According to independent financial research company Defaqto, for the financially disciplined a credit card could be the perfect solution and by choosing the right type of card they can be rewarded as they spend.

Defaqto's analysis of the credit market has found that 13 credit cards offer cashback rewards, where people receive monetary benefit according to how much they use the card.  The table, below, highlights the credit cards that are currently offering the highest cashback rewards.

David Black, Defaqto's Insight Analyst for Banking, said: "If you are confident that you can always repay the entire outstanding balance on your credit card every month then it makes sense to choose a card that offers rewards. Although Christmas is an expensive time, the right type of credit card can help you earn while you spend.

"There are essentially four types of rewards available: air miles; cash back; points schemes and shopping rewards.  Alternatively, if you need to borrow and repay over an extended period then a credit card that offers a long 0% introductory rate on purchases is an attractive option.

"The key is to choose a card with the type of reward that you want and that fits your circumstances.  However, the rewards offered by credit cards vary widely so it is important to focus on these benefits when comparing different options if you want to take advantage of the best offers available.

"If you have a good credit record and secure employment you can take your pick from the offers available so it makes sense to choose a credit card from which you can obtain some additional benefit.  If you want to have a new card for your Christmas spending, then you need to think about applying for it now so that you have it in time."