Pros and cons of various credit card rewards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Pros and cons of various credit card rewards

Pros and cons of various credit card rewards


Updated: December 26, 2012

Credit cards serve a different purpose for different users. Many users keep a credit card as a tool to pay for transactions. But a few individuals do use credit cards as a necessity. This is bad as it can lead to debt if the money borrowed is not paid within the grace period. But for all those who use credit cards for the ease of paying for things, there are a number of reward schemes that you can look at and take advantage of.

Each reward scheme is designed with an intention to cater to a different type of customer. Credit card companies offer different reward programs, offers and other features that make every card unique in its own way. You need to choose a card that is a good fit for your personal needs.

The air miles rewards scheme:

Pros:

  • Its gives air miles for every dollar that is spent on the card.
  • The points that you accumulate can be redeemed when you purchase an airline ticket.
  • It is useful for business men who travel around a lot and also frequent vacationers.
  • It can be combined with reward programs that the airline is offering.
  • The reward scheme can include free accommodation, airport pick up and drop, and even tickets to amusement parks and other attractions.
Cons:
  • It may be limited to a certain number of participating airline companies and the destinations might also be limited in scope.
  • This credit card will usually have an annual fee.
  • There will be a certain date within which the points must be redeemed, and hence you will have to make your travel plans according to this date.

The points based reward scheme

Pros:

  • It accumulates points based on the number of times you swipe your card or the amount you spend in dollars.
  • The points can be redeemed for either cash or gifts.
  • It is best for people who use their cards every day for all and various purchases.
  • It will also provide certain discounts at select stores for grocery and even other goods.
  • The cash that you can redeem will be directly credited to your account at the end of the year.
Cons:
  • The points will have a certain lower and upper limit. You need to redeem them within a certain time frame and failing to do may cause you to lose your points.
  • They cannot be redeemed if you cross the upper or lower limit and will be forfeited.
  • Certain purchases from non participating stores will not count towards redemption.

The gas points reward program

Pros:

  • It will provide points on every dollar that is spent on gasoline.
  • It can be redeemed for cash or gasoline gallons.
  • It is best for people who use an automobile regularly for commute or business.
Cons:
  • It may be limited to certain participating gas stations and oil companies.
  • It will not offer much flexibility when it comes to rewards and discounts on other goods.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.

Other Travel with Credit Cards Research:

Related Research:

Top 5 Cards for Travel from Our Partners: Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners: Winter 2017/18 – Expert Choice

Posted: February 2, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already - the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: January 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: January 10, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading