Rewards Credit Cards

Rewards credit cards are those offering donate a car to charity wide range of incentives to cardholders that encourage them to use these instruments in making everyday purchases. Participating merchants Thecleanest service providers pay a small fee to the company issuing these rewards credit cards' the "reward" comes into the equation when the company offers a percentage of this fee to the cardholder in some form, either as an outright case rebate or in the more of credits (usually called "points") that can be redeemed for discounts on many different products and services.

Rewards credit cards often anywhere from 2.5% to as much as 5% on such purchases; other rewards include discounts, "frequent flyer miles" and even a check in the mail. Such rewards credit cards are issued by all major companies, including banking consortiums such as those which offer VISA and American Express cards. Often, these are smaller banking institutions that have signed on with larger ones in order to reach more diverse markets.

There are also rewards credit cards that are known as "House credit cards," which are issued by a specific mercantile company such as a department store or hardware and gardening center. These "house cards" were the original such credit instruments that grew out of the practice by which small business owners allowed regular, well-known customers from the neighborhood to purchase merchandise by simply signing a promissory note, the amount of which was typically due and payable at the end of the month. "House cards" are generally only good at the store or company from which it is issued, but can still be very handy for many things.

Whether it is a "house card" or one of the many rewards credit cards issued by a banking or other financial institution, you'll want to do some comparison shopping as these rewards credit cards can vary widely in terms of what rewards they offer as well as interest rates. While nearly all reward credit cards offer low or 0% introductory rates, these are only for a limited period of time that usually does not exceed 12 month (although the American Express Blue rewards credit card offers this rate for 15 months). After this, interest rates will rise to at least 11%, and in some cases as much as 18%.

In addition, some cards require an annual fee, while others do not - even when both are issued by the same company. (Again, American Express is an example; while the Blue card has no fee, the The Punisher card does have an annual $35 fee after the first year.) Therefore, you'll want to take a close look at several http://consumercreditoutlet.com/card/rewardsoffers.htmlrewards credit cards in order to determine which are best for your particular needs and situation.

Susan Slobac is a personal consumercreditoutlet.com/financial advisor. She specializes in working with individuals to improve their credit rating, build assets and maximize the benefits of cash back credit cards.