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Research: Types of credit card reward programs -

Those who are looking for credit card reward programs should know that even credit card reward programs contain various types. Each reward program targets a specific type of audience. More importantly, credit card customers are able to benefit from one type of reward program but might not get any advantage from another. So it is quite important from the point of view of the credit card customer, to apply for the credit card, which offers rewards that suit them.

Frequent shopper reward programs

This type of reward program targets customers who are frequent shoppers and are looking for discounts at specific merchants or on specific brands. Customers who shop often in categories such as kitchen appliances, clothes, jewellery or electronics can get very good deals on these credit cards, or even reward points which can be redeemed periodically to take advantage of further discounts. This type of reward program is especially beneficial during the holiday season and you are out buying a lot of gifts for friends and family members.

Frequent flyer reward programs

Over the years, these reward programs have been offered to the best credit card customers with excellent credit rating. In this reward program, the credit card holders will be offered frequent flyer miles on every purchase. Usually the number of miles depends on your status, and may vary to some extent. These air miles can be redeemed for discounts on airline tickets. Interestingly, not all airline cards allow you to redeem your air miles easily, so you will have to go by reputation and pick cards where the airlines do not have any blackout dates. Some reputed airlines will even facilitate redeeming points for your partner, especially if you have an elite status. These points can also be redeemed in the form of magazine subscriptions or hotel stays in some case. This reward program suits those who travel often and hence get opportunities for staying in hotels and flying from one place to another frequently. Special privileges such as travel lounge is also available.

Fuel points

Given the recent increase in gas prices, these credit card reward programs can prove handy too. They allow you to obtain discounts on the fuel you purchase. If you take your vehicle to work every day and cover quite a distance, your fuel costs might be significant. In these cases, this card reward program can prove really handy, allowing you to get rebates at gas stations.

Cash back offers

These are once again offered to credit card customers with the best credit rating. Cash back offers are very beneficial for customers who have normal expenses and neither travel a lot or prefer shopping a lot. They can make their credit card reward count by getting a cash back of fewer than $100 from all their expenses at department stores, fuel stations and shopping malls. The percentage of cash back may vary from place to place, but it is usually around 1% for general purchases and slightly more for drug stores or gas stations.