The content is accurate at the time of publication and is subject to change.
Credit card rewards are offered by card issuers to attract customers, especially those who are using other credit cards. There are a whole range of credit card rewards which are offered by different credit card companies. These include travel rewards, rewards for shoppers, special discounts and loyalty points. Each credit card has some or all of the above rewards. In fact there are cash back rewards available as well with card holders getting about 1 – 5% of their cash expenses on their credit cards. There are credit cards which are meant for specific kinds of customers. The best examples are the frequent flyer and frequent shopper credit cards. Here are some of the rewards offered in a regular frequent flyer credit card.
Free air miles
Every dollar spent by the card holder on the frequent flyer credit card, fetches him a travel mile. As the card holder spends more and more, a lot of travel miles get accumulated. Eventually card holders can redeem travel miles, in the form of discounts on their air tickets. If you are one of those who travel a lot week after week, the frequent flyer card offers really good incentives. Moreover, a lot of frequent flyer credit cards come with opening bonus miles in excess of 20,000 for milestone expenses. In other words, if the card holder spends more than the stipulated amount, in the first few months, he or she becomes eligible for bonus miles that can be redeemed as discounts on air tickets too.
Travel insurance
A lot of frequent flyer credit cards come with insurance for which you don’t have to pay any premium. There are three common types of coverage offered on these travel reward cards. The first is accident insurance where coverage is offered for travel accidents. The second type of coverage is for travel cancellation, where one can be insured for the losses caused by sudden cancellation of a trip. This is beneficial for businessmen and musicians who perform in different places. Lastly, there is also lost baggage insurance, under which the card holders will receive cash to take care of their needs in case their baggage is misplaced by the airline company.
Discounts at hotels, restaurants and entertainment centers
Most of the travel rewards provide discounts to the card holder on their expenses including meals at restaurants and stay at different hotels. While some credit cards have explicit tie-ups with hotels and restaurants where one can avail discounts, others offer a general percentage across the table. The latter provide greater flexibility to the card holders. A lot of frequent flyer cards also offer discounts on entertainment. Common features include discounts or free tickets for movies and concerts, which will benefit those travelling with their partner.
Cash advance and currency exchange
Apart from the above rewards, travel cards also offer cheaper currency exchange and cash advance facilities. In other words, the commission for spending in another country with different currency or for withdrawing money from an ATM is less or sometimes waived off completely.
