There are a lot of rewards credit cards that one can actually choose from, not to mention the other types of cards that do not necessarily serve the same exact purpose. These products are specifically designed to provide incentives to users who frequently use their credit cards to make purchases. But that is not only the catch. Users also have the option to choose the best one that will suit their needs.
Cash back rewards
Getting the best cash reward credit card that is used frequently can provide users with a significant amount over a certain period of time. Such product allows cardholders to earn cash rewards for every purchase that is made. The amount of the cash back varies, but typically comes in percentage of a dollar spent. Some products allow higher percentage rates for higher purchases, which is oftentimes signaled by a certain level of amount.
Reward points
These are the most common forms of rewards. Each user is given a point for every amount of money that is charged using the card. When these points accumulate and reach a certain level, they can be used to redeem some items. These items may include gift certificates, electronics and gadgets, hotel stays, plane tickets, jewelries, office supplies, clothes, and a lot more. However, points do not apply on finance and interest charges. Reward programs and offers sometimes vary, so you have to check with your issuer before having your points redeemed. These issuers also provide updates on their promotional offers to users.
Hotel/Travel rewards
Compared to a cash back reward credit card, these types of incentives are used for hotel or travel purposes. There are credit cards that are offered by issuers in collaboration with certain hotels or companies that enable users to gain bonus points for using their services and amenities. In addition to that, these points can be used to earn free nights and upgrades, or the use of other services offered in a certain hotel, such as spa and facial care. These points can also be redeemed in exchange of travel tickets, use of cars for rent and even cruises. But there are no standards for these. The features may greatly vary depending on the product and the issuer. If you often go to a particular hotel, it is best that you apply for a credit card that is co-branded with it so you can heap huge rewards.
Retail rewards
Cash rebate credit cards, like any other rewards cards, can be used for retail purchases. Points or cash rebates are earned for all purchases made but with bonus points for specific good and services that are charged in your credit account. These are typically co-branded with a certain company that offers goods and services that you must avail in order to earn additional points. Points can oftentimes be redeemed through the same specific retail store. If you have preference for a certain brand, you can obtain significant benefits by participating in such promotions. Rebates, on the other hand, may be redeemed in the form of gift certificates, which you can also use to purchase another item in the store or serve as a gift to someone special.
Automobile rewards
These are featured on credit cards that are made for users that are forward-looking to having a new or a used car. These may also be used to redeem auto-related expenditures, merchandise and other services. Users also have the option to have their rewards through cash back method or the point system.
These may be through points or rebates that are earned for your gas purchases. Compared to cash reward credit cards, gas cards provide additional points or elaborate rebates on purchases made on gas. Such products may apply to any company or may be company-specific. This directly depends on the issuer of the product, whether they are offering a generic card or a retailer-specific. Most issuers provide company-specific cards, but these do not entirely mean that they are blocked from being used to another gas company.
Home improvement rewards
Points are given for any purchase that is made, however, bonus points or higher rebates are offered for home-related purchases. There are also products that allow points to be credited for mortgage payments, or can otherwise be redeemed for cash back, gift checks, or merchandise.
Frequent flier rewards
As the name implies, these are incentives offered for people who frequently travel trough air. Points through miles are typically earned either for money spend or for miles used in a certain travel period. Some products also allow points for all purchases and bonus points for airfares that are charged on these credit cards. Cash rebates may also be an option for some. But typically, accumulated points or miles are redeemed for airline travel.
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