Cashback, points and gifts for using your credit card


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Cashback, points and gifts for using your credit card

Cashback, points and gifts for using your credit card

The content is accurate at the time of publication and is subject to change.

A system of payment, credit cards offer proffer not just a simple way to purchase goods and services conveniently but also bring with them a number of additional benefits. Credit card rewards are by far one of the best things of possessing a credit card. Generally these are offered by the credit card company to encourage the consumer to use their card more often than they otherwise would. Being able to earn cash, travels for free and receiving actual gifts are some of the perks of using a credit card. Customers are advised to use the rewards that would be most beneficial to them.

Upon utilizing the credit card just like how it was designed for, consumers can gain many benefits from it. Yahoo! Finance suggests approximately 40 percent to 45 percent of credit cards associated with reward programs. An array of credit card issuers offers a range of credit card reward programs depending on the type of card issued and its optimum use by the account holder. The ability to receive back cash, pay down a debt without any hassles and earning points while still being able to purchase things on a routine basis is generally what these reward programs offer. In some instances credit card companies also offer points to frequent flyers and gift certificates.

Almost always, rewards are linked to buying an item or service on a credit card and don`t necessarily have to include the transfer of balance, an advance in cash or any other distinct use. Issuers in most cases bear a cost of around 0.25 percent and 2.0 percent. Some networks also augment their fees so that issuers have sufficient funds to offer a system of rewards. A number of issuers however are not very enthusiastic about redemption and compel the credit card holder to reach out to the customer service centre to gain the rewards. They do this by generally masking the redeemable awards on their website. A few others nevertheless enable redemption, though at merchandise that has a much reduced price.

Credit card rewards have become an inevitable part for the company issuing a credit card. This has to do with the very competitive environment that does exist and rewards points are seen as a way by which the company maintain a good relationship with their consumer. By and large, credit cards that are unredeemed do not go into the state treasury but are retained by the issuer. Card issuing companies must handle credit card reward points and associated incentives with utmost care so that they gain a portfolio that`s profitable.

Most credit card issuing companies try to keep the rewards as transparent as possible. Besides maintaining a catalogue of products that appear under their reward programme, they also try to make it incentive for the customer to make purchases through their credit card. The underlying fact is that credit card companies want the consumer to make more purchases on the whole and hence they offer additional benefits to the consumers.

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:

Related Research:

Top 5 Secured Credit Cards: January 2021 – Experts’ Choice

Top 5 Secured Credit Cards: January 2021 – Experts’ Choice

Posted: October 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Credit Card Tips For Holiday Shopping 2020

Credit Card Tips For Holiday Shopping 2020

Posted: October 15, 2020

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Top 5 Soft Pull Credit Cards: January 2021 – Experts’ Choice

Top 5 Soft Pull Credit Cards: January 2021 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!