Types of Reward Credit Cards
With so many different types of credit cards out there, it is unlikely you can not find a card to generate some significant savings or rewards. It doesn’t matter what kind of spender you are or what you are looking for in the form of a reward. The versatility of the credit card offers has made it possible for almost anyone to get what they want in a card. Let’s talk about how it got started and then we’ll talk about the different reward programs.
Your normal credit cards have been around for over 50 years; however, the reward card is a relatively new creation. 15 years ago it all began with Discover, offering a simple cash back program. Now the concept of rewards cards has blown up and been transformed in to a variety of different programs to appeal to everyone’s different tastes. But with so many choices out there it can be hard to decide what you want. Here we are going to talk about a few of the different types and what they do for you.
First you have your retail credit card. These cards are tied to specific merchants, like Sears, Lowes, and American Eagle. These cards operate like cash back cards, point’s cards and or rebate cards, but they are generally directed only at one merchant.
How about a Gasoline Credit Card? These cards are usually tied to a specific gasoline brand, but loyalty pays off. Rewards are usually in the form of rebates that get applied to your credit card for future gas purchases. Usually the points back program for this type of card is tiered. (i.e. 6% for gas, 3% for groceries, 1% for all other purchases.) Many cards issued directly from the gasoline retailer have severe limits so be sure to check out the complete offer.
Point Credit cards are next. With this type of card a point program allows you to earn points on your everyday purchases. Now every time you swipe that card your points add up and sooner or later you’ll be able to choose what you want from a variety of rewards. However, in most cases there is a minimum point value before you can start redeeming, but patience is a virtue.
Cash Back Cards are one of the largest growing reward cards. These cards allow you to earn a flat percent, usually between 1 and 5, on your total purchases. This allows you to accumulate a lot of money, provided you swipe that card a lot. This type of card is usually paid once a year, either by a mailed check or a statement credit but some issuers allow the redemption of cash earned upon request.
Last but not least we have the Airline Credit Card. These cards allow you to earn frequent flyer miles every time you use your little plastic card. This gives you points that you can redeem for free flights, hotels or even rental cars. Looking at all of that your first thought is going to be this is perfect for the man who travels nonstop for business, but that may not be the only people it’s good for. Most airlines have even combined this with their own frequent flyer programs so you can earn twice as many miles.