Credit Card Incentives


Credit card companies want your business. After all, lending money to people is profitable. Besides the interest fees that you'll be charged, the credit card company also collects a fee from merchants who accept their credit cards. In order to get your business, most credit card companies are willing to offer you some great incentives - not only to apply for one of their cards, but to use it for everything from car rentals to weekly groceries.

Among the incentives that you might be offered for using a particular credit card are frequent flyer miles, phone call minutes, rebates and cash-back on purchases, insurance on your purchases and more. Here's a list of some of the most popular incentives. Check around to find a card that offers incentives that make sense for the way you use your card.

Rebates

One of the most common incentives for using your credit card is a cash-back or rebate offer. Generally, you'll get 1-5% back on various purchases. Depending on the credit card, you may get 1% back on most purchases, and 5% back on purchases made at convenience stores, gas stations, grocery stores and 'member merchants'. The rebate may be in the form of a credit on your bill, a gift card for $10, $20 or more dollars when you reach that amount in cash rebates, or a check sent from the credit card company.

Frequent flier miles

Another common credit card incentive is frequent flier miles that can be used on a number of airlines for personal and/or business travel. Check the individual cards' terms and conditions to find out exactly how to redeem your frequent flier miles.

Phone Minutes

A new incentive being offered by several credit card companies is phone minutes to use with your cell phone account. Redemption is generally via a phone card sent when the amount of the reward minutes reaches a certain denomination, but your credit card company may have different rules and policies.

Additional warranty coverage for the items you purchase

A few credit card companies offer extra warranty time or coverage on items that you purchase using their card. The additional coverage is only available on particular cards, generally the Premium cards. If any item that you purchase using cards that are lost, stolen or breaks within the stated warranty period, the credit card company will replace it at their cost.

Car rental insurance, Travel accident insurance or travel-related discounts

If you travel often and use rental cars, then it may make sense for you to have a card that offers insurance on you when you're driving a rental car - at no extra charge. Likewise travel insurance and travel discounts that may be available only to holders of that particular credit card, or is available at reduced rates to them.

Credit card registration

Some credit card companies offer to register all of your credit cards so that if your purse or wallet is lost or stolen, you only need to make one call to alert all of your credit card companies. It's a handy perk to have, especially since it's easy to forget a card you don't use often in the heat of the moment. Taking advantage of a credit card registry is one way to be sure that all of your creditors are notified that your cards are lost.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

MORE RESOURCES:
RELATED ARTICLES
What is Credit Card and Debit Card Blocking?
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card "blocking."What is Blocking?When you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total.
Credit Reporting: How Does It Work?
In order to determine a consumer's credit worthiness, creditors and lending institutions have come to depend on credit reporting agencies. Credit reporting agencies supply individual reports that provide consumer specific information for lending purposes.
Minimum Credit Card Payments to Rise
For years, major credit card companies have allowed cardholders to make minimum payments of 2% of the outstanding balances on their credit cards. Having customers pay the minimum doesn't reduce the balance by very much, but when the 18-30% interest rates that many credit cards charge is applied, the result is a profitable ones for the banks that issue credit cards.
Beware of Bogus Credit Repair Companies!
So-called "credit repair" companies claim they can remove negative information from credit reports. Advertising as "Credit Advisors," "Credit Rating Correction Services" or "Credit Consultants," they trumpet variations on this message: "Turned down because of bad credit? We can help!" Many of these companies charge hundreds if not thousands of dollars for the promise to "clean up" bad credit reports.
Bad Credit? No Credit? Yeah, Its a Problem.
Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit.
Credit Card Dirty Tricks
There are many of us that have been badly stung by credit card companies that have charged exorbitant fees to use their credit cards. Several years ago an APR of 25% to 29% was common place which in simple terms means that if you borrow £1,000 your interest on that money would be £250 to £290 a year.
Student Credit Cards
STUDENT CREDIT CARDS With graduate debt averaging over £12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain.
Is it Safe to Use Online Car Finance?
Online car finance is convenient. You can apply over the net and shop around for a good deal from the comfort of your home.
Credit Cards
Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the fine print.
What is Credit Repair and How Can It Help You?
There are millions of consumer credit reports on file from mainly three major reporting bureaus which include Trans Union, Experian, and Equifax. These credit gathering agencies store huge amounts of data about every person that takes out a loan, credit card, or any other line of credit.
The Ghost of Expected Surprises
Here, Cratchet, what do you think you're doing?Uh, er, leaving sir.Leaving? It's 5 minutes to the hour.
Credit and Its Cost
What is Credit? Credit is money granted by a lender (or creditor) to a debtor (or borrower) whereby the lender defers receiving payment of the debt for a period. In exchange for the credit allowed, the lender will get back the money lent plus interest.
Debit Card vs. Credit Card, What Are The Differences ?
Ah, the "good old days". If you are a baby boomer, like me, then you probably remember how important it was to rush to the bank on payday.
Finding Reputable Credit Card Companies
You're interested in getting the best credit cards for your family's needs, but you don't want to be cheated. Or you're interested in small business credit cards, but you've heard that some of them aren't terribly secure.
Understanding Your Rights Under The Equal Credit Opportunity Act
It wasn't all that long ago that lenders blatantly discriminated when it came to approving credit for women and minority groups. Women were actually asked personal and demeaning questions like, how many children do you plan to have in the future or are you on birth control?Despite the fact that they were entering the workforce in record numbers, single women were often required to get a cosigner or denied credit altogether.
Get Your Credit Score To Soar In The Twinkling of An Eye
Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans.
Trying to Land a Job? Poor Credit Scores May Hurt Your Chances
Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access your credit report.
Will Inquiries Lower Your Credit Score?
What are inquiries?When you apply for credit the creditor or lender checks your credit report to verify that you qualify for the credit or loan you are applying for. The "inquiry" is then reported to the credit bureaus and shows up on your credit report.
How To Save Money On Credit Cards
Some credit cards offer a cash advance option. But how good a deal is this?Not very.
New Law Provides Free Annual Credit Report
As of Thursday, December 1, 2004, one-third of Americans will be able to access their credit reports from all three main agencies for free. Passed in late 2003, the Fair & Accurate Credit Transactions Act creates a central source consumers can use to obtain a free annual credit report.