Credit Card Incentive Programs

Credit cards are great for purchases but they are made even better with their incentive programs. Most of the cards today come with a rewards program that grants you with many benefits as you use your card.  You have several options today – you can choose a card that gives you free airline tickets, free hotel nights, or merchandise. It is up to you to pick the one that suits you best while understanding the preset conditions associated with your card and its rewards.

How to Earn Rewards

Basically, you need to use your card to get rewards. There are rare cards that let you obtain incentives just by keeping your account. However, if you truly want to earn the most valuable rewards, you should keep on purchasing against your card. This may sound a bit expensive which is why you should pick a card that fits your needs.

For instance, if you are a frequent traveler, your card should reward you for purchasing airline tickets. This way, you do not have to modify your lifestyle just to obtain rewards. Another example is for those who are frequently driving on the road. Get a gas card to relieve yourself from the stressful gas price hike.

Existing Incentive Programs

Most programs today give you one point for every dollar you spend. But there are also others that let you earn more if you spend your credits on particular items such as medicine or groceries. The popular reward types nowadays include:

• Cash back – Some creditors will let you earn cash for the credits you have spent. You can obtain real cash or you can add the amount into your bank account. Others mail you a check at the end of the billing period. You also have the option to send money to your university alumni association or your favorite charity. 
• Sponsored rewards – Many issuers have now joined forces with other merchants. With this type of incentive program, you can shop or purchase at a specific store and you can get more exclusive rewards. 
• Travel incentives – If you earn enough points or miles, you can redeem them for airline tickets, resort or hotel stays, or even a vacation package. You can also use your rewards to decrease the total amount you need to pay for a particular brand’s service or product. 
• Gift cards or free merchandise – Most cards today offer free merchandise which can be a variety of products such as sporting equipment, meals, electronics, housewares, and gift cards from vendors. 
• Events – Sometimes, experiences are more powerful rewards than cash and other tangible items. There are a few cards available that let you meet your favorite athlete or your favorite band. You can even find credit cards that let you learn how to cook with a renowned chef.

Watch Out for Restrictions

Many consumers continue to chase after rewards without knowing that there are limitations on the amount that they can obtain. Make sure that you are aware about the conditions connected to the incentive program of your card. Some have expiration dates while others have point limits. Some even impose a fee when collecting the rewards. It always pays to read the terms and conditions written in your card agreement.