Credit card reward systems and the way they word

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Credit card reward systems and the way they word

Credit card reward systems and the way they word


Updated: December 26, 2012

Add to Favorites:

There are various systems of rewards that are offered by banks for credit cards. A lot of banks have started offering these sorts of rewards with a view to increase their customer base. And with the current economic crisis that the planet is facing, it is becoming more important for banks to devise new ways to attract customers.

There are a number of credit card rewards systems. The most popular type of credit card reward is the points based system. Under the point`s bases system, the card holder would get points for every time that the card is used. The number of points obtained could depend on the number of swipes or the dollar amount that is spent on the purchase. Always try to find out what sort of system your card follows before you go chasing points for yourself.

Apart from this type of reward system there are several others which follow a more direct way of rewarding the customer. Many times, banks give out freebies to customers when they first open their accounts. This sort of reward could be a vacation package or even a mobile phone. But before accepting such rewards, make sure you really need them in the first place. There could be a lot of rewards that you just won`t need.

But apart from rewards, there are a lot more things that you need to look into while choosing your credit card. Rewards are just a way of enticing the customer into going for a particular credit account. Apart from rewards, you will have to find out whether the credit account is actually worth taking for its features. The interest rate that you will be paying on borrowed amounts needs to be as low as possible. Along with this, try getting a higher credit limit on the credit account if you are going to be using it to make large purchases. Ensure that your card does not have an annual fee. If so, try to get it revoked or get a better deal on the other features. Not many cards have an annual fee these days and it really does not make sense for you to pay to be able to use a credit account.

Rewards are a means to attract more customers. You need not spend in order to get rewards, but rewards are just a bonus that one gets for using a credit card. It must not become the sole reason why you spend on your card. Remember, you still need to pay back whatever you spend on your card.

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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading