What are the types of credit card rewards usually on offer?

Answered on October 08, 2010
Updated on October 08, 2010
The content is accurate at the time of publication and is subject to change.
Amy Miller 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.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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BROWSE MORE QUESTIONS ABOUT Credit Card Rewards:

When you are thinking of applying for a credit card, all factors need to be taken into account, especially if you pay any fees for this card. With cash back cards, it's pretty simple - yes, in most cases they are worth it. Cash back cards give you plain and easy to use rewards that you can redeem on your purchases. So, basically you buy something and then erase its cost with your cash back. If your card has got fees and you tend to carry a balance, first calculate your overall spendings. See how much cash back you will earn with your average spendings with this card and then deduct the...
A cashback card is a card that gives you cash back as rewards. Basically this means that a percentage of the amount spent on purchases is returned to you. This percentage may differ depending on the terms of a credit card issuer that produces your card. For example, the amount of your cash back is 3%. It implies that if you spend $100 with this credit card, you'll earn $3. After you earn the rewards, you may redeem them on purchases. Cash back rewards can be redeemed for statement credits, cash or gift cards.
There are a lot of cards that will give you rewards when you shop at retail stores. Usually retail stores try to offer you a co-branded card with a discount on this brand's purchases, some minor rewards or special financing. However, you pay for these questionable benefits with very high APR and fees. And those cards are only appropriate for shopping at one brand. A better option for shopping would be to acquire a general rewards card. Such a card will let you earn rewards at any store and there are cards that have no annual fee and long periods of 0% intro APR.

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