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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.