Reward Credit Cards

Written by Jared Vincenti
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With the abundance of credit card offers out there, it can be hard for a company to distinguish itself from its competitors. Offering low APR rates on cards is a sure way to draw more business, but this quickly reaches a point of diminishing returns. After all, that's how credit card companies make their money. A few percentage points might not make a huge difference to each individual cardholder, but can make a huge difference to the companies.

Forced to think of new ways to lure potential cardholders, credit card companies started offering reward credit cards. By making deals with other businesses, credit card companies are able to offer material bonuses to their customers. Depending on your tastes, you can usually find a credit card that has rewards tailored to your specific interests.

Types of Rewards

Among the first rewards cards conceived were the air miles cards. These cards offered frequent flyer miles to customers, so that the more the card is used, the more miles the cardholder runs up. These have been expanded to include all kinds of travel, lodging, and other luxuries.

In addition, some credit cards offer a percentage cash back on purchases. Others offer bonus gallons of gas, dollars at bookstores--just about any reward you can imagine. Credit cards from certain companies may offer discounts on specific brands, or might increase cash back or double rewards with specific purchases. Between all these different bonus systems, credit card companies manage to distinguish themselves and draw new customers.

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