What are the types of credit card rewards usually on offer?
Answered on Friday, October 8th, 2010 by
Amy Miller

There are varying degrees of credit card rewards that credit card issuers give out to attract more customers, given the stiff competition in this field. With millions of new credit card accounts being approved every quarter, credit card companies are doing everything they could to win customers, especially those who have a very good credit history. Even the credit card rewards are therefore segregated in a similar way, in the sense that the best rewards are usually available to credit card customers with high credit card ratings.

Amongst the most popular rewards are the air miles that are rewarded for a stipulated amount of expenditure every month. Credit card customers need to accumulate these air miles and when they have enough of them these could be redeemed to get discounts on airline tickets. Some cards even offer special privileges which include lounge and concierge services at the airports not available to normal passengers.

Another very popular credit card reward offered on many cards is the cash back offer. In the cash back offer, credit card customers get some of the money they have spent during the month back. The amount of cash that is returned could vary from 1% to 5%. In fact, it could vary depending on where the purchases have been made, for example, groceries and gas stations could lead to greater cash back. The cash is returned in the form of a check addressed to the credit card holder or added to the account so that it can be redeemed in terms of purchases in the next month.

Credit card rewards also include special discounts at shopping malls at select merchants or special brands. Some could be flat discounts on anything that the credit card holder purchases while others could be in the form of discounts on purchases after the credit card holder has shopped for certain amount of money. While the former reward is quite useful, the latter is not so useful unless the credit card holders use it efficiently. Credit card rewards also include loyalty points which are rewarded after every expense. These loyalty points can then be redeemed by the customer. While some could be exchanged for gifts or other merchandise in the inventory of the credit card company, others offer discounts on special brands or select shopping malls where these loyalty points can be used to get rebates of any purchase made.

Other Popular Credit Card Rewards FAQs

There are so many great credit cards that offer cash back, it’s difficult to narrow it down to just one. But you’re right that another type of card is probably a better choice.

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This is an interesting dilemma. The thing about credit cards is, you will only get into debt using one if you use it to buy things that are beyond your means.

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