Home > Credit Cards > How To Avail Benefits From Credit Card Reward Schemes?
How To Avail Benefits From Credit Card Reward Schemes? |
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Credit card reward schemes help create loyal consumers to credit card companies. These schemes reward them points on purchases made on credit cards and can be cashed later to pay for travel, food outlets, entertainment and more. However, some don't always offer value since they charge high interest rates, and are used mostly by consumers who pay off their full monthly balance before incurring interest rates. There are two types of reward schemes: purchases earn you points to redeem gifts, trips and more shopping like in retailer's loyalty credit card reward schemes or store credit cards or you get cash back when you spend. There are around 60 major credit cards that offer credit card reward schemes, 67% which are points based. The trick is to choose a card for its reward scheme. Those that only charge interest, only increase your cost. Avoid those with annual fee, as it reduces reward's value. Rewards are given to spend more, except the AOL card, where its Internet subscription discount can be earned on balance transfers too. The Schemes Weighed and Top Reward Schemes Each credit card reward scheme offers different benefits so choose a suitable one from the best options we have given below. Some credit cards pay extra points for purchases at specific retailers. This is only beneficial for those who buy from one retailer only. Providers of this point reward schemes gain more as they disguise the reward's value. In top point credit card reward schemes, rewards are paid directly, as it guarantees them custom. For instance, the GM card allows a $3 rebate or point for every $100 spent, for a discount of up to $2,500. When buying from dealers, always negotiate the price before telling them you'll pay in points. The alternative : cash back: If you're looking for something better, cash back credit cards are the ultimate flexible credit card reward scheme. Capital One's Circle Rebate cards and the Blue American Express credit card pay standard 1% cash back (plus intro rates of 5% for one month or 2% for three months). If you're not impressed, go back to cash back! The Number Crunch These credit card reward schemes can be rewarding if you are using a credit card to pay off full monthly dues or use debit cards. Lloyds TSB, HSBC and other credit cards don't have reward schemes and some offer a pittance. So if you choose BAA , when you spend $15,000 annually on you credit card you could earn up to $150 in cash or a GM credit card which pays a $450 discount, but only if you're willing to purchase it's high end car of course. Now go ahead, and enjoy the benefits credit card reward schemes. |
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