Credit card rewards are often a form of incentive provided by credit card companies to attract customers. With growing competition amongst credit card issuers, credit card rewards are a part o the strategy to incentivize customers to open more credit card accounts. However, not all credit card rewards are really good and each one has its own sets of advantages and disadvantages.
This is one of the best incentives for customers and also the most preferable rewards program. This is one of the very few rewards programs which do not force the credit card customer to go for more expenses in order to avail a discount or reward. In this offer, customers are directly given part of their expenditure back in the form of a check or by crediting to the account to be spent in the cycle. It means, whether credit card customers spend money in gas stations, grocery stories or super markets, they virtually get a discount of anywhere between 1-5% at all times. In one way the cash back works as a saving for credit card holders although there is an upper limit usually, on how much you can get back on the credit card every month.
This is another of the credit card rewards that is very popular amongst customers. In this, credit card customers get a fixed number of frequent flyer miles to their account for a fixed amount of expenditure. Over a period of time these frequent flyer miles can be redeemed to get discounts of air trips within the country or even abroad depending on how many miles you have saved.
Some credit cards offer discounts at entertainment venues. It is common for credit cards to offer rewards such as one ticket free for every one ticket bought for a sporting event, movie or theater, depending on the network of the credit card with which it has tie-ups.
There are many credit cards which have brand relationships with hotel chains and reputed restaurants across the world. Credit card rewards in such cases includes discounts up to 25% sometimes, on hotel stays or dinners. These rewards come in handy especially during the vacation.
This is one of the less popular types of credit card rewards. In this loyalty points are added to a customer's account which can later be redeemed for gifts at specific merchants.