Credit Cards: Rewards

Rewards and benefits credit cards offer.

The increasing competition in the credit card business made the credit card companies look for new ways to make their customers feel satisfied. This brought a wide variety of cards designed to serve different purposes. Below are the most common rewards offered:

Car Rental Insurance

Credit card company covers the cost of car rental insurance when the car is rented with the card.

Cash Back

The credit card company pays a small portion of the card holder's purchases. In most cases, there is an annual limit to the amount that can be paid back to the card holder.

Extended Warranty

The credit card company extends the warranty of products purchased with the credit card.

Fraud Protection

The credit card company does not hold the account holder liable for unauthorized charges to the account.

Purchase Protection

Stolen or accidentally damaged products purchased with the card are replaced within a certain period of time.

Travel Discounts

Hotel and car rental discounts are provided when the card is used paying for the service.

Reward Plans

Credit card company provides points for the amount of purchases made with the card. There are a wide variety of ways different cards offer to redeem accumulated points. Airline tickets, and catalog items are the most common ones.

Prestige Card Member Plans

Credit card company offers cards that allow a variety of rewards - especially from participating businesses. Rewards can include discount on restaurant meals, members-only low-rate travel reservation lines, cash discounts on hotels, airline tickets and car rentals, discharges to your card on movie tickets, flight insurance, and so on. Such members-only prestige card plans almost always come with a relatively high annual fee of about $80.