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Credit card rewards programs: travel rewards, credit card rewards, and more, oh my!

Search for a Credit Card Reward Program

Getting a free credit card goodie is perhaps one of the most satisfying feelings you can have when you open your monthly credit card statement. Watching your air miles rack up, and using them to pay for your family's vacation (Disney's Visa reward card) or putting your percent cash back towards your retirement savings (Fidelity Mastercard) makes you realize the real benefits that credit can bring to a responsible user.

Credit card rewards programs are enticements that credit card issuers offer in order to spur people with good credit to use even more credit, and that merchants also participate in so that you'll use their services again. As credit card issuers compete more for dwindling consumer dollars, you can really benefit from credit card reward wars—with travel rewards, hotel discounts, gasoline rebates, free air miles, and cash back—to name only a few credit card rewards.

Many credit card rewards programs work with merchants to bring you special offers. So, using a particular card can bring its own rewards—literally. It's important for you to check out the rewards you get—if you don't travel, getting 5,000 points to stay at a Hilton hotel might not appeal to you—and you should look for a different card.

Airlines

Collecting airline air miles took off in the early ‘90s and never looked back. Credit card reward programs often offer thousands of air mile points just for accepting a credit card with their company. Airlines give you bonus air miles for flying with them rather than their competitor. In many cases, airline air miles can be used not only with the airlines, but traded in to use with airline hotels, meals, gift certificates, even movie passes complete with popcorn and pop.

Hotels

Hotels may offer you air miles if you stay with them, cash back, discounted rates, or one free night if you're staying for several in a row. Again, these points can work many ways, but they're usually automatically tracked by your credit card.

Gasoline

Gasoline and credit card merchants have paired up and many now offer as much as 5% cash back on gasoline, or any purchase you make at the gasoline service station. These credit card rewards are often offered along with drug and grocery store rebates.

Cash back

This credit card reward program offers you cash back when you spend. Many, but not all, of these credit card reward programs have a yearly limit on how much cash you can get back. Some cash back programs limit how the cash can be received—rebates may be limited to cell phones, groceries, or gasoline. Other cash credit card reward programs not only track your rebate, but automatically apply it to your next eligible purchase. In some cases, the cash back can be traded for gift certificates with local merchants (who sometimes double its value) or coupled with other rewards programs such as air miles.

In all, Rewards Credit Cards are a real win for the consumer, and, if you have good credit, you can cash in on a lot of credit card goodies.

The advantages and disadvantages of a credit card reward program

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