The fundamentals of credit card rewards


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 » The fundamentals of credit card rewards

The fundamentals of credit card rewards

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Choosing a single credit card is an overwhelming task, since the choices of credit cards that are available today are abundant. This task is slightly simplified by various reward schemes that the credit card companies offer to increase their customer base. Credit card rewards pay the customer for spending using their credit cards. It may be in the form of reward points that may be redeemed later for cash, or free air travel, or free accommodation, shopping discounts, and many such schemes. Reward schemes have become an important deciding factor when choosing a credit card. The best credit cards offer meaningful reward schemes without charging an annual fee. When it comes to choosing a credit card with respect to reward schemes, what matter the most is every individual`s personal requirement. A credit card must be tailored according to personal preferences to ensure maximum benefits and ease of use. Reward credit cards that give free air miles that can get free air tickets are most suitable for frequent flyers. People who travel a lot can get great benefits if their credit card air miles can be combined with the air mile program of any air carrier. Also, some credit card companies offer air miles rewards along with hotel stay and car rental discounts reward programs. Having air miles reward cards will not make much sense to people who fly only once or twice a year. Students can benefit greatly from point system reward schemes. Points earned can be redeemed for cash at the end of the billing cycle, if enough points are accumulated. Students can also take advantage of department store discounts that the credit cards offer, since discounts help students minimize their expenses. If the credit card company is affiliated with grocery stores, then every grocery shopping can be rewarded and earned points can be exchanged for free products or cash. People who commute using only cars can benefit from gas reward cards that some credit card companies offer. This reward scheme works similar to point system, but only at gas stations that participate. Every time the credit card is used at the gas station, points are awarded which can then be redeemed for free gas. Choosing a good credit card needs some time and research on the internet. Comparison of various credit card companies and the offers they provide are detailed on the internet. Comparing the reward schemes of every credit card company is the first step towards choosing a good credit card. Cards that are loaded with more than two reward schemes often charge an annual fee for membership. Before applying for any offers, it is mandatory to read the term of use documents, and the details of the reward schemes. Some credit cards have hidden charges associated with them, which do not come into immediate attention. Some may have restrictions about how the rewards can be redeemed, restrictions on roll back of the unused points, and expiration date for the reward points. All this has to be verified before applying for a rewarding credit card.

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!