There are different types of reward credit cards available for shopping. These rewards come in the form of points, cash back, shopping rewards or travel rewards. Cash back rewards are the bonuses that you receive while doing shopping with your reward credit cards. The company has provided a feature, the more you use the reward cards the more benefits you will be receiving.
When you go shopping with reward cards you have to decide on whether you want the rewards in the form of points or cash back. If you go in for reward points, then you have to keep track of the points that you accumulate. You can exchange these points for airline tickets, show tickets and so on. Some people find it difficult to keep track of the points.
You need to be very careful with these types of points. Sometimes when you go in for redeeming your points it would have become outdated. There are always restrictions attached to the reward points. You have to keep track of the deadline or the last date for redemption of your reward points. Once it crosses the deadline, the points will become zero and you have to start from scratch to gain or accumulate your points. There could also be some redemption fees attached to the reward points. So you should be aware of all these points when making use of reward cards.
Cash back is another form of reward that is offered while shopping with these cards. Many people prefer the cash back rewards compared to the reward points as here you do not need to keep track of your points. The cash back amount automatically gets credited into your savings account.
There are different types of reward cards. Special cards are available for students. Students can greatly benefit making use of the cards. But they should make sure that they make their payments in full within the stipulated time. Otherwise the service charges and the late fees will eat up the reward points earned. There are gas reward cards. Some particular reward cards can be used only with these particular purchases only. For example if you have a gas reward card then it will be more beneficial to use these reward cards only for purchase in the gas stations. The company also benefit by offering these cards in the sense that they are able to hold their customers. In this way their regular customers come back to make their purchases and then increase their business.
You should always make sure that your reward cards do not have annual fees. If it does then whatever you earn as reward points will be canceled with the annual fees. So it will not be of any benefit to you. Also you should keep an eye on the expiration date attached to these reward cards. It is very much important that you go through the rules and regulations before you go in for these cash back reward cards for shopping purpose.