The Best Credit Card Bonus Rewards Programs
Rewards credit cards give customers an incentive to charge purchases. Customers can earn points toward gift certificates, accumulate airline miles they can use to get free plane tickets or get cash back through rewards cards. Many rewards credit cards carry higher interest rates and annual fees over traditional credit cards, but heavy spenders can benefit from the perks offered by these rewards.
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Cash Back Rewards
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Cash back rewards credit cards pay the customer a bonus depending on how much the customer spends using the card. The creditor may pay a flat percentage for purchases made anywhere, or offer a higher amount for certain types of purchases or purchases made at particular stores. Some cash back credit cards have a tier system, meaning customers will receive a higher percentage back if they spend more throughout the year. For example, the Capital One No Hassle Cash Rewards Card offers 3 percent cash back on grocery and gas purchases if a customer spends more than $6,000 a year and 1 percent if the customer spends less than that, according to Bankrate.
Travel Rewards
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Travel rewards credit cards enable cardholders to accumulate points for purchases that a customer can use to purchase airline tickets, hotel rooms or travel-related merchandise. Each card uses a different point system and may place a limit on the number of points a customer can accumulate or a restriction on when and where the customer can cash in. For example, the American Express Premier Rewards Gold card allows customers to accumulate points toward an airline's frequent flier program. Customers receive three points for every dollar spent on airline tickets, two points for every dollar spent on gas and grocery purchases and one point for every dollar charged elsewhere, according to MSN.
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Gas Rebates
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Several cards offer rebates for gas purchases the customer makes with the credit card. Cards issued by gasoline companies, such as the ExxonMobil MasterCard, offer rebates only when customers use their brand of gasoline, while other cards offer rebates on any brand. For example, the Discover Open Road credit card gives customers a 2 percent rebate on all gas purchases up to $250 each month and a 1 percent rebate on all other purchases, according to MSN. The creditor may issue these rebates as credits on the credit card account or certificates sent to the customer.
Retail Rewards
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Most retail stores offer discounts, coupons and other perks to account holders who use the store's credit card. Larger creditors also issue rewards cards that give a percentage back on a customer's retail purchases. Typically, these cards offer points for certain types of purchases, such as groceries or drugstore purchases, regardless of which retail store the customer uses. The customer can cash in the points for gift certificates, travel miles or other perks. For example, the Citibank Diamond Preferred Rewards card gives customers five points for every dollar charged on gas, groceries or drugstore purchases, according to MSN.
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