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Research: Different types of credit card reward programs -

Credit card rewards are offered based on the usage of credit cards. The following are the different reward programs offered by various credit card companies:

Airline reward programs are the most common credit card reward programs offered are either in the form of redeemable reward points or frequent flyer cards. The accumulated points can be utilized for availing discounts on booking air tickets, special benefits, priority access in airport, etc. Reward programs are generally offered with an expiry in terms of period and number of miles travelled.

Balance transfer is another major type of reward offered to credit card holder, where the balance amount in a credit can be transferred to another credit card at a lower rate of interest or zero rate interest. By availing the transfer, the cardholders are able to maintain their debt at lower rate of interest or without interest. However, the zero interest rate is valid for a period ranging from minimum of three months to maximum of eighteen months.

Hotel Rewards Programs refers to the Credit card rewards that can be redeemed during the stay at a hotel. Such rewards are for business travellers who stay in a particular group of hotel with attractive rates and offers including cash back offer. For everything spent on hotel stay will be returned with discount and rebate points. The rewards can be utilized towards free vehicle transfer also.

Cash Back offer is one of the most renowned rewards extended by the credit card companies. It is considered the most flexible rewards than any other type of reward program, as cash rebate is offered on anything spent by the customer and the same can be spent on anything. Cash back rebates may also be received as gift certificates, credit to the card account or bank account, etc.

Miscellaneous rewards are designed to offer the users to avail any type of facility like cash back offer, discounts at hotels, restaurant, resort, air ticket booking, shopping rebate, etc., for each purchase. Frequent utilization of rewards added to the card results in getting higher rewards.

Travelling reward programs is similar to frequent flyer reward. But with travel rewards, apart from booking airline tickets, hotel accommodations, rail bookings, car rental, etc can be done.

Retail reward cards are issued to the customers who makes regular purchase at retail stores. The credit card company and the several brands sold at retail shops have tie up to promote the card company as well as the product. They insist on purchase of particular brand for a specific amount in a specific period to avail more rebates and offers.

When the credit card company does not extend any other rewards on credit cards and offers zero percent APR all the time, it may extend the additional reward program in form of 0% interest rate as an introductory offer for specific period that ranges from three months to eighteen months.