Reward Credit Cards - Benefit While Building Credit

by : Ann Wilson



Copyright (c) 2008 Ann Wilson

Credit card reward companies love to make new and exciting offers to invite more prospects to apply and to keep their existing clients as well. The close competition between these reward credit card companies drive each one to come up with the best promotions, better credit card rewards deals, and bigger prizes.

The introduction of a variety of reward credit card and specialized credit card rewards make more room for more enhanced features of credit cards. For example, aside from standard credit cards, there are also small business credit cards for small enterprises; corporate credit card for large companies, student credit cards for young people and students, and a variety of reward points credit cards that offers wonderful choices of reward programs.

Different types of reward credit cards also have different kinds of bonuses to offer. One type of rewards credit cards program is the cash back rewards system. Through a cash back system, the credit card holder is entitled to earn points and collect as much points as he can by using his credit card on his purchases. The points he earned will be equivalent to a certain amount of cash which he can use to make a new purchase or to pay off a sum of his balance.

The cash back rewards program is ideal for people who use their credit cards to make large purchases frequently or at regular intervals. Those who own a business, who regularly purchase goods or materials for his production, have a greater opportunity to gather loads of points in just a short time. Thus, a credit card which offers cash back rewards program is most advantageous for businessmen and entrepreneurs. However, even if you're just a regular employee, you can still benefit from cash rewards programs. As long as you choose a credit card which does not impose expiration or a limited time period in collecting points, you can still earn points even if it takes quite a longer time.

Aside from cash back, cash rebates is also a similar system. The only difference is that, with every buy, you will receive a certain percentage of cash from the total amount of your purchase. You don't necessarily have to collect points. Each time you make a purchase, you are instantly awarded a certain percentage of cash rebate.

Another popular reward that credit card companies offer is the free travel privilege. Just like with cash back system, you need to collect points in your account. But this time, instead of cash back rewards, your credit card points are equivalent to travel miles. When you've gathered enough travel miles reward credit card points, you will be entitled to a free travel ticket with an affiliate airline. The destination will depend on the airline sponsor and also on the amount of mileage points you earned. The more airline credit card or miles points you earn, the more expensive will be your travel reward destination.

Gas reward programs are also popular among credit card companies where the card holder earns points each time he re-fuels with an affiliate gas station until he reaches the minimum points required to be entitled for a full tank of gas for free. Other types of bonuses that credit cards provide their customers are free gift items and discounted rates from participating stores and establishments. Promotional rates such as 0% introductory APR on purchases or balance transfers are also common offers. Introductory offers are great as long as you make sure that the rates will remain at a reasonable range when the introductory period expires.

Obviously, with all these rewards available, reward credit cards are hard to resist. Benfits and reward points make reward credit cards more fun and useful. The key to getting the most out of credit card rewards is of course to stay within your credit limit, stay within your budget, and keep up with the terms of payment all year round. This way, you can build up good credit while earning rewards at the same time.