Barclaycard Freedom could make you money

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By Paul Davies
Know Your Money Editor

Everyone wants to get a good deal and savvy shoppers might already be using reward cards in stores that they regularly shop in. However, a new credit card deal could also provide them with a little bonus.

The Barclaycard Freedom scheme may make a Barclaycard worth considering for consumers wishing to earn a little back on what they spend. The offer is available on most Barclaycard's, however consumers could be wise to find out if their card or the one they are considering getting is covered,

What's the deal?

Unlike other schemes that use points or vouchers, whenever you shop at one of the participating retailers - of which there are 30,000 - you'll earn one per cent of your purchase price as Reward Money except for 0.5 per cent at Shell. Customers can then redeem it automatically in selected stores.

A rate of one per cent means that in real terms a spend of £1,000 will see you given a reward of £10, or one pence per pound.

The credit card reward schemes are in contrast to those operated by Lloyds TSB, M&S, Sainsbury's Bank and Tesco, offer a combination of points and airmiles.

Retailers signed up to the scheme include LA Fitness, YO! Sushi, Goldsmiths, Nationwide Autocentres and Firebox.com.

Barclaycard says: "Once you register online with mybarclaycard, you'll be able to check how much Reward Money you've earned, redeemed and saved up. We'll also email you about special offers that may interest you."

Is it worth it?

Barclaycard have highlighted the positives of the scheme and suggested that cardholders buying an item at a retailer that has joined up with the scheme will see the value of their Reward Money appear on the screen of the card machine before they enter their pin number to pay.

Users will then be able to decide whether they would like to put some or all of their Reward Money towards that purchase, or continue to save for a future purchase.

Sarah Newman, managing director of Barclaycard Freedom, said: "The beauty of the scheme lies in the fact that Reward Money can be redeemed on purchases in most retailers and with around 30,000 retail outlets participating from today, the options to redeem are endless."

The experts seem to think it could be a worthwhile choice, but as is often the case it could be wise to consider whether it suits your needs and if you will shop at the retailers involved enough times to make a saving.

Peter Harrison, credit card expert at moneysupermarket.com, the price comparison website, said: "Barclay's card has really set a benchmark for the rest of the credit card market to follow with the launch of Barclaycard Freedom.

"It is the ease with which you can earn and redeem reward money on this scheme that makes it particularly attractive to many customers."

He added that it is only beneficial if customers pay off their balance in full each month, otherwise the interest they pay will offset the reward element.

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.