Are Credit Card Issuers Cutting Back on Perks and Rewards?


If you are looking for an easy way to earn $100 in bonuses, reward credit cards might be a great idea. Earning a little money while doing your everyday spending sounds perfect, after all, everyone likes to get something for nothing. However, if you are not careful, your rewards credit card might, in fact, deliver absolutely nothing for something.

Because there are many rewards credit cards available on the market, choosing the right one might be challenging, especially considering the fact that there are a few major holes in the system that might lead to the downfall of credit card rewards.


There are three main types of credit card rewards: points, cash, or miles. The most popular and straightforward of the three types mentioned above is the cash reward. However, it is worth mentioning that cash rewards are not always literal, as you will not be able to get the money directly. Instead, the cash rewards can be used as a credit in your account that can be used to purchase goods and services.

In some cases, you will get a deposit in your bank account or a check whenever you wish to redeem your reward. Cash rewards can also be redeemed as gift cards when the issuer has a partnership with certain merchants. As a general rule, credit card rewards can only be redeemed in increments that have a minimum value of $25 or more. In the US, credit cards that offer cash rewards are known as cash-back credit cards and more than 40 percent of American credit card holders own at least one.

The second most popular rewards credit cards are the point rewards cards. Point rewards credit card owners get a preset number of points per dollar. Points can generally be used to redeem certain services or goods. Depending on the credit card company, holders might also be able to use their points to buy gift cards, change to points for cash, or use the points for travel. Gift cards are usually the most profitable way of using credit card points, as the majority of merchants will give substantial discounts.

And last but not least, rewards credit cards holders can get travel rewards or miles whenever they spend a certain amount of money. These miles can usually be used to redeem airline tickets or to get discounts at different hotels. The number of miles that can be earned will normally vary based on the credit card issuer. Additionally, the minimum number of miles needed in order to be able to purchase a plane ticket varies based on the flier program. Credit card holders are sometimes able to use their miles for other programs but some of the miles will probably be lost in translation….Read More>>>

Source: ibtimes


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