Credit card rewards and what your should be careful about
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 rewards and what your should be careful about

Credit card rewards and what your should be careful about


Updated: December 26, 2012

By
Add to Favorites:
Credit card rewards are often part of a strategy by the credit card issuers who are looking to draw more customers to use their card and also spend more on it. Credit card rewards are not always a token of appreciation for the credit card holders. In many ways they could be disguised tricks to enhance revenues of the credit card issuers. Here are some common rewards and things which credit card holders need to be careful about in that regards. Cash back offers These are the most popular of credit card rewards and offer at least 1% saving for the customers based on their expenses. In fact a lot of customers give up using other credit cards to benefit from cash back offers on one of their credit cards. However, customers need to ensure that there isn`t any annual fees on these cards as an annual fee of 75 - 150 dollars could eat substantially into the savings. Card holders should also check what the cap on redeeming cash back is. Many credit cards allow cash back only up to a certain stipulated amount per month and per year. Frequent flyer airline rewards Those excited about their airline miles should ensure that there is no fine print involved. A lot of airlines do not let redemption of points in the form of discounts on airline tickets at will. There are blackout dates more often than not. Also customers find it hard to get tickets when they want to redeem the discounts. Airline miles reward credit cards are notorious for their high annual fee. Also ensure there is no transaction charge or hidden fee while redeeming the airline miles. Opening bonus To cash in on the holiday season a lot of credit card issuers have announced an opening bonus in the form of points or cash for customers who open new credit card accounts. However, the bonus doesn`t come without any caveats. Most cards offer a bonus of about 100 dollars only if the cardholder manages to spend a substantial amount in the first 3 months. Often this offer pushes card holders to spend more than what they actually do in order to avail the opening bonus. When there are joining points instead of cash, one has to know exactly how these points can be redeemed. Frequent Shopper rewards These are one of the trickiest reward cards around. If there are discounts, they are usually available only after you reach milestone expenses. The other disadvantage is that the discounts can be redeemed only at certain merchant stores, which might not be your preferences. Therefore card holders are better off spending based on their budget, and not based on the rewards on the credit cards.

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

Other Travel with Credit Cards Research:

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: August 9, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading