Benefits Of Using Credit Cards

Posted by Nick Niesen on October 29th, 2010

In this day and age, with the credit card market growing as large as it now has, it is no wonder that credit card companies have started trying to entice buyers by offering incentive programs on their cards. These programs come in many different forms and offer a variety of different products and services

One of the most common incentive programs offered by many credit card companies is the cash back program. In this program a certain amount of the total purchases made using the credit card, are refunded to the credit card holder in the form of a credit on their account. In some cases the amount is credited at the end of the year. In other cases the amount is credited after each purchase transaction is cleared.

Probably the second most popular incentive program is the air miles rewards program. These programs are offered in conjunction with the major airlines and allow the credit card holder to build up points which may then be redeemed for airline tickets. These airline tickets may often have restrictions on when they may be redeemed though the more popular air miles programs these days have removed any and all restrictions of this type.

Another popular incentive program with credit card companies is the product discount programs. In this case the credit card company will align itself with a manufacturer and provide the credit card user with a way of earning discounts on the purchases of items from that specific participating company. A prime example of this program would be the GM visa card. This card accumulates a certain percentage from each purchase made on the credit card towards the purchase of a new GM vehicle. These programs may often have a set maximum on the value of the discount that may be received.

Credit card incentive programs can often provide and excellent benefit to the card holder that is using the credit card. The key is to ensure that the incentive being offered is of use to the primary card holder, and to make sure the credit is used in a responsible manner.