Get to Know Reward Credit Cards
There are some credit cards that will give you incentives for the amount of money that you spend on the card. There are all types of credit card rewards. Generally you will earn a certain number or percentage of rewards for every amount that you spend on your credit card.
Credit Card Reward Types
There are three main categories that rewards fall into, those being cash, points and miles.
Cash rewards are the easiest. Cash reward cards don’t always mean that you get cash. There are programs that will let you exchange your cash rewards as credit to your account and others will deposit the amount into your bank account. There are some cash rewards that can be redeemed as gift cards for merchant partners of your credit card issuer.
Point rewards are based on the per dollar amount or your currency. Points can be redeemed for merchandise in the rewards programs online shopping mall or for gift cards, cash or travel.
Miles or travel reward cards will give you miles that you are able to redeem for airline tickets.
Rewards can be used for all sorts of things. You are able to use cash rewards to reduce your balance on your credit card, travel rewards can get you free trips and points can help you get presents or things for yourself.
Tiered Vs. Flat Rewards
With reward credit cards you may earn a number of rewards for every dollar that you spend or you may earn a smaller amount of rewards on the first lot of purchases that you make in year and then a larger amount of rewards once you have hit a certain threshold.