Significant points of credit card rewards schemes


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 » Travel with Credit Cards » Significant points of credit card rewards schemes

Significant points of credit card rewards schemes

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Credit cards are not all the same, each card offers its unique options. You need to tailor make these things for your personal needs. There are two types of credit card users. The first type will use the card for convenience to pay for transactions and the other type will use it as a necessity. If you use it like a necessity, you will end up in debt if the money is not paid within the grace period. However if you use it for the ease of operation that it provides, you can take advantage of the large number of rewards that’s offered. Each reward is designed for different reasons. You need to figure out for what purpose you will be using your credit card before you decide on a reward scheme. We shall now discuss a few popular rewards schemes and talk about the merits and demerits that are associated with operating them. AIR MILES The benefits • You get air miles for every dollar that you spend on the card • The points will accumulate and then you can redeem them to buy air tickets. • It is best for business owners who travel a lot and also frequent travelers. • The reward schemes will in some cases include hotel stay, car rentals and dinner packages. The disadvantages: • You might be limited in terms of the destinations that you fly with your earned air miles and you will also have a limited choice of the airline companies. • There will be an annual fee associated with this credit card. • The points that you gain must be redeemed within a certain time limit failing which you will forfeit the entire amount. Points based rewards The advantages: • It will accumulate points depending on the frequency with which you operate your card or in other cases the amount you spend in dollars. • You can redeem the points for cash or merchandise. • It is ideal for people who use their card for everyday purchases like groceries, health care, or other entertainment activities. The disadvantages: • You will have a lower limit and an upper limit and you need to claim your points within this limit. If you fail to do so, you will forfeit all the points. • There will also be a time limit within which you need to claim your points. • You need to purchase stuff only from affiliated stores in order to take advantage of the points based rewards scheme. The gas point's rewards: The advantages: • It will give you points on every dollar that you spend on fuel. • You can redeem the points for more fuel. • It is ideal for people who use their vehicles daily. The disadvantage is that you need to go to gas stations that are affiliated to the credit card company.

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:

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: February 12, 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
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... 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!