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Reward Credit Cards - An Introduction

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This article is an introduction to the various features and benefits of
reward credit cards.

Reward Credit Cards,Best Reward Credit Cards,Reward Credit Card

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The competition among credit card companies is intensifying by the day
and in order to beat the competition, card issuers are coming up with new
offers and incentives to entice customers each and every day. Reward
credit cards have gradually evolved in this race for survival among
credit card issuers and banks. Why would reward credit cards, which were
once issued only to the loyal customers of a credit card company, be
promoted and distributed in such large numbers? Well, market conditions
have pressured credit card issuers into providing newer more compelling
credit card offers, allowing the common man on the street to gain
immensely from the newest and best reward credit cards currently
available. This article will describe the various types of reward credit
cards, features, benefits, tips for use, and things to watch out for
maximum advantage.

In essence, reward credit cardholders are entitled to receive rewards
based on the points he or she gains through their card purchases over
time. The most common types of reward credit cards seen in the
marketplace are air miles credit cards and cash back credit cards.

Air miles credit cards provide air miles for each dollar spent using the
card and allow the user to redeem the accumulated miles for hotel
accommodations, air travel or car rentals. Such offers are especially
beneficial for those who are frequent fliers. Cash back credit cards
typically give back a set percentage of total purchases as a cash rebate
based on the total bill, either monthly or annually.

Who Should Be Using a Reward Credit Card?

Although the credit card companies are undoubtedly aiming to profit from
every type of credit card they roll out in the market, one can expect
some economic advantages behind the reward credit cards for consumers as
well. Reward benefits for cardholders are usually offset by higher
interest rates and additional fees and surcharges that exceed what a
normal credit card might incur. Reward credit cards are best suited for
individuals that can confidently pay off their card balance each and
every month so as not to incur finance charges by carrying a balance.
The points that you earn from your purchases can be built up
progressively but are better suited to individuals or businesses that use
their cards often and are probably not best for those who use credit
cards very sparsely primarily because by the time the cardholder builds
up enough points for a viable reward redemption, many times, the
expiration date on those points will have already expired.

Tips for Use

So if you do plan on acquiring a reward credit card, to get the most out
of the card, you should try to use it extensively, including virtually
every bill you pay, including electricity and gas bills, phone service
expenses, weekly grocery shopping, and internet and cable TV, etc. If you
are financially sound enough to make the repayments in time, there are
even some reward credit cards that will allow you to charge your
mortgage or rent payment on your card.

Also, it is a good idea to apply for an add-on card for your spouse and
distribute the spending on both. This way the customer could gain more
bonus points for the same expenditure and hence better rewards.

To sum it up, the trick is quite simple, use your reward credit card as
often as possible (well within your repayment ability, of course), always
pay off the card balance at the end of each month, and reap the reward

Finally, before concluding, a word of advice; prior to applying for a
reward credit card, do a bit of research to see which companies are
offering the best reward credit cards and which among them is the most
advantageous for your personal situation. The Internet provides a wealth
of information on various card types and offers so be sure to utilize the
information available online. A little bit of homework will make all the
difference in your reward credit cards selection.