Credit cards rewards
Due to cut throat competition amongst Credit companies a bonanza of offers are coming along with credit cards. The genesis of such competition is an anti-trust case in the Supreme Court of USA by whose ruling Amex broke the Visa/MasterCard monopoly. To compete with Ames, Visa has promoted a premium program known as the "Signature Program" that competes with some of Amex's premiere programs.
There are a variety of credit card reward programs available today offering incentives as points, rebates or cash back in order to attract and retain your business. Types of rewards credit cards include travel, shopping, cash back, city points, airline, hotel, and savings account. Most major credit card companies are becoming specialized in designing credit cards with savings to suit a variety of lifestyles. But to avail these cards credit history must be very sound and trustworthy.
The point system is a very traditional and perhaps the oldest reward system for credit card holders. By this system a point is accumulated for purchase of every dollar spent and that point can be redeemed after a certain point is accumulated. These points can be redeemed in two ways; one is by gift system i.e. for 300 points one body spray will be given and so on, the other system is of adjusting the point into equivalent dollar while buying some product or service.
One most rewarding and attractive feature is zero joining fees and no annual fee for initial few years or zero joining fee and free card for entire life of the card holder. Next comes balance transfer from other cards with low interest rate and higher EMIs. Several cards give airlines reward points, which can be redeemed against airline tickets from particular company or travel agent. Issuance of free additional cards or add-on cards is also a good offer. Most of the companies are now giving the benefit of $0 fraud liability if missing of the card is reported in time.
For a brief comparison of some popular credit card offers, some of the following reward policy may be looked into.
Gas rewards offer cash back on gasoline and other selected purchases, some with a higher cash back bonus for gas purchased in the first 2-3 months, which may be useful if a long road trip is in the mind.
Cash back rewards programmes may offer 5% cash back offer in bills at grocery stores, gas stations, telephone bills and drug stores, and 1% elsewhere leading to long term savings on purchases made regularly.
Points programs may offer one or more points on particular amount of spending which is redeemable on merchandise, travel, gift cards or cash back. Some are specific programmes customised by a certain company, while others are more general.
Depending on whether the holder is interested in general savings at a wider variety of businesses, or more targeted savings and rewards with a particular company, there are many credit cards available that offer something back for your customer loyalty.
Several companies have introduced lottery system amongst lucky users for which reward may be foreign trip or consumer goods etc.
We can have a look towards reward offers from some famous cards:-
With the Flexible Rewards SM Platinum Visa card, 1 point is added to bonus for spending every dollar thus everyday purchases turn into extraordinary rewards as follows:-
1) Choose from a variety of products of great brand names.
2) Earn airline tickets, hotel stays or car rentals.
3) Redeem 3,500 points and receive a $25 cheque.
4) Get free stuff from your favourite stores and restaurants.
5) Enjoy great rewards that is redeemable with as few as 2,500 points.
6) No annual fee.
IN:NYC Card from American Express allows Cardholders to earn points to eat, drink, and play at New York Hot-spots. One INSIDE Rewards Point is earned for every Dollar spent
Discover Platinum American Flag Card needs no annual fee to join and assures $0 fraud liability. Other rewards include:
1) 0% Introductory APR for Purchases and Balance Transfers for initial 12 Months
2) Full 5% Cash-back Bonus on Get More Program Purchases throughout the Year when you Shop at selected Bookstores, Home Improvement Stores, Gasoline Stations, Restaurants etc.
3) Up to 1% Cash-back Bonus on other purchases
Rewards programmes of Discover Platinum Clear Card are almost similar in nature.
United Mileage Plus Signature Visa Card is known for its following offers:
1. 17,500 Bonus Miles after the first purchase
2. 1 Mile for Every $1 spent in purchases
3. Free One-Way, 1,000 Mile, One-Class Upgrade Certificate
4. United Discount Travel Certificate worth $25
5. Earning of Bonus Miles at listed restaurants nationwide
BP Visa Rewards Card is attracting new customers through its No Annual Fee scheme. It also gives privilege to earn up to 10% in rebates and there's no limit to the amount of rebates that can be earned.
Citi Diamond Preferred Rewards Card offers a Gift Card worth $50 and scope of redeeming 6,000 Bonus Points after first purchase.
Five Bonus ThankYou Points are awarded for every dollar spent at Supermarkets, Drugstores and Gas Stations for first 12 Months and one Bonus ThankYou Point for every Dollar spent on all other purchases
JetBlue Card from American Express ushers 5,000 Bonus Award with First Purchase.
200 Award offers One TrueBlue Point, and 100 TrueBlue Points gives a reward of a Round-Trip Flight anywhere JetBlue Goes. Double Award Bonus can be earned at Restaurants, Movie Theaters, Concerts, Golf Courses, and other fun places and of course on JetBlue Flight purchases.
Chase Platinum MasterCard takes no Annual Fee and they have flexible rewards programme. One Point is obtained per Dollar spent and that can be redeemed on holders option as Cash Back, Merchandise, Travel or Gift Cards. Interest-Free grace period is given when bill is paid in full in each month
Volkswagen Platinum Rewards Visa Card offers various privileges e.g.
1. Two Points can be earned for spending a Dollar on Volkswagen Merchandise
2. One Point can be earned for every dollar spent on other purchases.
3. Points accumulated can be redeemed for Volkswagen Services or Merchandise, Gift Certificates, Travel etc. Chase PerfectCard MasterCard gives 6% rebates on Gas purchases at any Gas Station for the first 90 days, 3% rebates on Gas purchases at any Gas Station after the first 90 days and 1% rebates on all other purchases made anywhere else
British Airways Visa Signature Card has several bonus schemes like:
1. 15,000 Bonus B.A. Miles after First Purchase through the card
2. $20 off Any British Airways ticket purchase made using the card through the websites.
3. 2 B.A. Miles for Every $1 Spent on British Airways purchases
4. 1 B.A. Mile for Every $1 Spent on All Other Purchases
5. No Limit To the B.A. Miles
Toys R Us Visa Platinum Card from Chase takes no annual fee and provides following benefits:
1. 0% introductory APR for first 6 Months on Balance Transfers and purchases also
2. 4% Rebate on all Purchases made at chain stores of Toys "R" Us and Babies "R" Us
3. Up to 1% Rebate on purchases made at millions of participating locations worldwide
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