Credit Card Rewards Can Be Selling Point For A New Card
In today's highly competitive credit card market, many consumers are looking beyond the interest rate and opting instead for those companies offering the best credit card rewards they can find. While a low interest rate is still one of the primary reasons some people will switch card companies, credit card rewards play a crucial role when they make a decision. It is not always about having a grace period for recent buys before interest is tacked onto the bill, as some folks are interested more in earning reward points to use in the future.
As the competition intensifies, credit card rewards are becoming more creative in order to lure new business. Additionally, many companies are offering rewards with fewer restrictions to make customers feel as though they are really getting a reward instead of just a carrot on a stick. When credit card rewards were first introduced into the market, many had so many restrictions, consumers felt as though there were too many hoops through which they had to jump to make them worthwhile.
For example, one of the most commonly sought after credit card rewards were airline miles. Some of the card companies offered air miles, but most restricted the dates on which the person could fly, and often times there were only a few seats available and once they were claimed by others, the collected miles were not available to use.
Earning Cash Back Becoming More Popular
One of the current credit card rewards that seem to be capturing a lot of attention is the ability to earn cash back on purchases. When payments are made on time every month, the consumer can earn a percentage of their spending back in the form of a rebate check or have that amount credited to their balance.
Credit card companies are also offering new credit card rewards in the form of lower interest rates if the consumer pays their bills on time. One such offer promises to return five percent as a rebate after making on-time payments for 12 months. Others offer points to consumers that can be used to purchase merchandise from their own company-sponsored store or to buy gift certificates from a variety of outlets.
Even during a time when available credit may be lean, card companies are devising new credit card rewards in order to attract new business, especially from consumers with above average credit scores. However, when a person with less than perfect credit can receive a card and make their payments on time, it is important to them to have credit card rewards as a way to offset the higher interest rate they are charged.
