In 1996, The Rewards Credit Cards Hit The Market

Category: Finance, Credit.

The very first credit card was the Diners club card, which was created by Frank McNamara in 195From there many companies, and banks began, stores offering credit cards.

Not only did this give the customer the freedom to have credit, but they also did not have to carry around large sums of money and could purchase larger items and pay for them later. These credit cards gave the cardholder the ability to purchase on credit and pay it back at a later date with interest payments added if the entire balance was not paid on time. In 1996, the rewards credit cards hit the market. Discover was the first to offer a rewards credit card, which gave the cardholder the chance to receive a percentage of their spending to be returned to them in the form of rebates. Today, you can find all kinds of rewards credit cards. This is similar to the cash back rewards credit cards that you see everywhere.

Next, in line was Continental Airlines that began to offer frequent flier miles. The cardholder can receive a percentage back on some of their purchases either monthly or yearly, you must purchase, however at the stores or type of stores the credit card company offers the with their cash back policy. Now, every airline and many major credit card companies have jumped on these rewards credit cards, each with their own special incentives to use their credit cards. The air miles can be used for airline tickets, and car rentals, hotel accommodations. For every purchase, you make with the air miles rewards credit cards you accumulate points, these points can then be transferred into air miles. Some however, only allow certain airlines, and car rental, hotel chains agencies.

Be sure you learn when the points you accumulate will expire or any applicable black out dates. Many times other fees such as membership fees and higher interest rates can be applied. Many people prefer rewards credit cards that fit their lifestyle such as saving points for a trip to the Super Bowl, paying off your mortgage, or taking a, visiting Disney Land cruise. There are however, limitations on most rewards credit cards. No matter what you would enjoy to do with your reward points, you are sure to find rewards credit cards with you in mind. Once you get the most points available that is it, you are no longer eligible for the benefits offered by the rewards credit card.

The more you spend the more points you will earn. Another thing to consider is that all points you receive are calculated on how much you spend. Be sure that you are not just spending to earn a terrific prize, you maybe able to purchase that prize for quite a bit less if you saved for it instead of spending more and paying interest to earn it. You will more than likely be paying more annual fees and even transaction fees to redeem your points into rewards.