Does one reward credit card give you the same benefits as any other rewards card? Lloyds TSB have launched their Rewards American Express Credit Card, their first loyalty card, which offers customers one point for every pound they spend, customers can use their points at retailers such as Debenhams, Marks & Spencers, UCI Cinemas and PC world. They are also offering 0% balance transfers for the first six months and then a 16.9% standard rate after this initial period. Lloyds intend to market their new card to their existing cardholders before venturing to the wider market.

Some leading experts say that the new card from Lloyds isn’t all it is cracked up to be. When the customer has earned 2,000 points they will receive only a £10 voucher which is redeemable at certain retailers. That is only a half a percent reward rate.

Compare it to the American Express Blue Card, which offers 2% cash back for the first six months and 0.5% thereafter on purchases up to the sum of £4,000 and then 1% above this sum yearly. They offer a rate of 2.9% for balance transfers for the first six months but have a standard rate of only 14.9%.

It somehow doesn’t live up to other reward cards on the market say critics e.g. the 0% balance transfer offer is usually implemented for the fist nine months on most other reward cards but the Rewards American Express Card only offers 0% balance transfers for the first six months. Lloyds said that their new card would be suited to some customers and that it depends on how the customers want to use their credit card.

This is only one comparison. There are many reward credit cards to choose from with mainly airline miles, cash back and reward points as their selling tools. If you want a reward card then you have to decide what you want from it and if it best suits your circumstances, maybe you travel and would benefit from air miles. It just may be that you like the idea of getting a little money for nothing with a cash back scheme. A reward card is also beneficial to you if you pay off your balance in full every month as you are gaining cash back etc. without paying interest on your credit.

In general the rewards credit cards that you are considering applying for will no doubt offer rewards that are of interest to you, otherwise you would be looking elsewhere. This article is to help you realise that although the reward card may be the rewards that you actually want, there may be more fruitful credit card rewards’ alternatives for you to consider. The example above showing the benefit of the American Express cash back offer compared to the Lloyds TSB card.

Is this a question about reward cards or about credit cards in general, you have to shop about for the best deal no matter what card you intend to obtain. With so many companies offering cash back and rewards is this what the consumer wants, or is it the clever marketing strategies of the credit card companies.