Reward credit cards are those cards that allow you to receive points for particular purchases (they remind airline credit cards). These points are known as bonuses, which in real life usually turn into discounts or special offers. Every credit card company has a specific list of purchases that add points to the account.
Furthermore, every company has a specific system of the points. Some companies give a point for every $1 spent, while others give a point for $5. You can get rewards when:
- Make purchases in department stores or supermarkets. You can exchange points for vouchers and other coupons.
- Purchase flight tickets that add you points, which you can further exchange for discounts on flight tickets.
- Book hotels and purchase other hotel services.
You can adjust the rewards systems and receive them within 48 hours, monthly, or annually. During first months of using a card, it’s possible to receive extra points for the particular amount of money spent, for instance, or for premium or gold account.
It’s important to remember that such cards usually come with high interest and annual fee. Sometimes owners have to pay an extra fee for withdrawing cash or missing monthly payments (check installment loans with monthly payments as well).