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What are Reward Points?

It is my opinion that rewards points should only be collected by those who don't carry a balance each month.

Credit cards are not just meant as a replacement for cash when in need. They also help the customer to gain reward points. Such points are extra features that are provided by the credit card issuer. There are many different types of rewards that are offered to catch the eye of the customer.

Travel Rewards ~ Cash Back Rewards ~ Gas & Groceries ~ Air Miles

The rewards are offered by the reward credit cards. Many different credit card issuers offer a huge variety of reward credit cards which in turn offers different rewards depending on that card. Thus a customer has to decide which card will suit him best and which rewards will help him gain an advantage. The points are offered by the reward credit cards issued by the credit card issuer, under certain conditions to provide recognition for the customers. The reward points are accumulated by the customer and can be used to obtain benefits listed under the various reward programs things people spend money on.

Every time a reward credit card is used by the customer a certain number of reward points are added to the customerís rewards account. Thus, once a good number of reward points are accumulated, the customer can use it for purchasing items again or the customer can even convert the points into cash. This is however dependent upon the card that the customer has, the issuer and the agreement between them. The value of each reward also differs for different card issuers.

~ gift budget ~ household budgeting ~ retail discounts ~ vacation budget ~

The next step after accumulating a heap of points is to redeem these points. The rewards that the bank used to offer earlier were very limited and the prices were too high. But now there is a huge list of what a customer can do with their rewards. Some of the credit card company issuers have a tie up with the leading dealers of merchandise that allows the customers to directly redeem their reward points for the goods. Itís not necessary to contact the credit card issuer or get any gift vouchers from them. The customer can pay using their reward points. Thus when the card is swiped it will show the amount of reward points in that card. The customer will have a choice on whether to pay using cash or by points.

Of the huge number of credit cards each with multiple features, the customer has to pick the most flexible and convenient card for him. If the customer is a frequent traveler, then he can choose a travel credit card. The travel credit card will offer him reward points for every ticket he purchases using the travel reward credit card. Thus he can redeem his points to get a travel ticket to any place he wants, and this is very advantageous for him. Another credit card with rewards are fuel cards where you accumulate points and exchange them for free fuel. Thus with proper planning the customer can gain a lot from his reward credit card. So instead of getting a normal credit card, the customers can go for a credit card that provides them with various rewards.

SEE ALSO


Capital One - No Hassle Rewards



References





External Links


MBNA WorldPoints
MBNA My Travel Rewards Center
TD Travel Rewards

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