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Research: 5 credit card rewards that card holders clamour for -

There are several different types of credit cards which card issuers are offering these days to attract card holders. There is intense competition amongst major card issuers too. The credit CARD Act has put a lot of restrictions on credit card companies. So getting more card holders is the only way to really make up for the lost revenue as far as card issuers are concerned. Here are some of the top incentives that are being offered by card companies. One should notice that the best rewards are always available for those customers who have an excellent credit history.

Cash back credit cards

Cash back credit cards are the cards for which there is the greatest demand amongst card holders. This is largely because of the amount of saving one can make with these cards. The cash back credit cards usually offer 1% cash back on all expenses and sometimes as high as 5% cash back on specific expenses like groceries, medicines or fuel. This could literally translate to a $100 saving every month, if the average expense of a household is around $800 - $1000. More importantly a lot of cash back credit cards, provide this discount in the form of direct deduction from the next month’s bill which is an added incentive.

Opening bonus

Although suited for festivals like Christmas and for New Year’s Eve, the opening bonus is a handy reward for those who know that some big expenses are due. For example, some credit cards last Christmas offered a $100 discount on the bill if card holders manage to spend $500 on the credit card within 3 months of opening an account. If you have plans to go on a vacation or to buy something expensive, the target can be achieved thereby allowing you to benefit from a substantial discount.

Travel rewards

A lot of travel cards bundle a few travel rewards for those card holders who fly frequently from one place to another. Travel rewards could include incentives like travel accident insurance, lost baggage reimbursement, discounts at hotels, restaurants and entertainment centres. Other benefits could include free lost card replacement and waiver of cash conversion fee as well.

Air miles

Your expenses will earn you points. But the utility of the reward is derived from how well you can redeem those points and how useful are the rewards. For example, some cards will give you one air mile for every dollar spent. At a later stage you can redeem these miles for discounts on your airplane tickets, hotel stays and other travel expenses. You can literally cash in on your past expenses, which is good.

Discounts at select merchants

Some branded credit cards come with special rewards with select merchants. For example, oil credit cards, often allow you to get a discount every time you purchase fuel from a particular chain of gas stations. Similarly, some credit cards will give you discounts for shopping at select merchants, irrespective of the amount of shopping you actually indulge in.