Credit card rewards and what your should be careful about

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 » Credit card rewards and what your should be careful about

Credit card rewards and what your should be careful about


Updated: December 26, 2012

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

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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... 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!