A Quick Look at Credit Card Rewards Programs


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Saving money on shopping can be one of the most fulfilling and financially advantageous experiences. While some retailers offer coupons, others offer a rewards credit card. These credit cards can give cash backs, points, or miles to return some value on the purchases you make, either through debit cards or cash. But you may have to follow some rules to redeem them.

That’s why it is critical to understand what this is all about and how it works.

An overview of a reward card

A reward card helps you secure points, cashback, or miles on shopping.

It is how you can define them also. There can be flat-rate rewards applicable on all items or bonus rewards on particular categories. These rewards usually generate when you buy anything.

You cannot expect them on balance transfers or any such thing. Let’s get into the three types of reward credit cards.

Points-based rewards cards

If you use a Dillard’s Credit Card, you may be familiar with the point system. Usually, you get points against the amount you spend. You can later redeem them as cash, gift cards, etc., based on the process that your issuer follows. 

Cashback cards

Many cash-cards offer you some percentage of cash based on your shopping value. It can vary from 1% to 2% and above. But some of these gather points, which you can turn into dollars. Every point can have a different dollar value based on how you leverage them.

Miles rewards credit cards

It is more relevant in the travel category. You can earn miles to redeem on your air tickets. A credit card can offer varying miles, and the ways to use them can also be distinct.

How to redeem rewards?

While some cards may set a specific limit after which only you can redeem them, others can be instantly redeemable. Usually, these points don’t expire and remain active as long as you use your card. However, if you stop using, these points may not be available anymore. Still, it is better to get an idea of your issuer’s rules.

So, if you are a regular customer at a retail store, you may want to have some coupons to save on your expenses. But when you don’t find one, don’t get disappointed and stop.

Look for their rewards credit cards to make your shopping a guilt-free experience. Some of them can come with additional perks as you unlock a particular milestone. It may not charge you for gift wrapping, shipping, etc. Your monthly bonus points can also increase.

There can be a couple of extra features too you would want to have at no cost like these. Although financial institutions may also offer rewards credit cards, it would be easy to get one from where you frequently shop.

You wouldn’t need to search online or do additional research to learn about options.

Other than this, you can also keep an eye on your store’s website page, where they publish the latest offers and deals. This habit can help you with your savings goal.

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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