Almost all credit cards offer you some kind of reward program either at the time you sign up, or if you are a loyal customer of the card. Reward plans work out well only if you don`t pay for it, in other words, if you don`t pay a huge annual fee for the membership. Different reward schemes work well for different needs of people. Most popular reward schemes are air mile rewards, point rewards, cash back schemes and gas points.
Air mile reward plans are usually available in premium credit cards like platinum or gold membership visa or master cards. You can get a free upgrade to those cards if you are a valuable customer or you might have to pay a onetime membership fee or an annual fee to own the card. Air mile reward plan will have air miles awarded to you for every dollar you spend using your credit card.
Point system is the most common reward plan of all and is available on a standard credit card these days. You don`t have to pay any kind of fee to own a standard credit card, and so this reward scheme works fine for most people. In this scheme, you will be awarded certain number of points for every dollar you spend through your credit card and when you reach a particular limit, you can either buy merchandize or get cash back for the points. Some cards have both upper limit and lower limit set for the number of points you can earn, which can be a setback, if you use your card very often.
Cash back scheme works just like the point reward system, but here you will receive a check directly if you wish to get your reward. It is like getting money back for every dollar you spend. There is no preset condition to the way you have to spend the money you get from the credit card company. You will receive a check which you will have to deposit in the bank and the money is yours to use. This system however, has a certain lower limit fixed, crossing which, you will be eligible to claim your rewards.
Gas points will give you points for every purchase at a gas station using your card. This is a very simple reward scheme and will not usually have a lot of restrictions to en-cash the reward. You will be eligible for free fuel at the participating gas stations, if you wish to use your reward points.