The stiff competition to increase their customer base has driven credit card companies to develop extremely attractive rewards programs. Indeed, consumers sign up for specific rewards credit cards due to the enticing products that can be exchanged for rewards points earned for expenses charged. In fact, one of the factors differentiating one card from another is the type of rewards programs and retail discounts. The success of rewards programs is apparent as a 2002 survey has shown that the average American owns between 7 to 10 credit cards.

Rewards programs come in many forms, and its best to learn more about each before making a decision on one that will fit your lifestyle, spending pattern and personal requirements.

Airline Miles

The popularity and volume of airline travel has encouraged rewards credit cards to include free airline miles or airline mile redemptions in their rewards programs. With this, frequent flyers are given opportunities to accelerate their airline miles accumulation through credit card charges made to their cards. Rewards points are converted into airline miles, which can be exchanged for free flights when a specific number of miles has been accumulated. What better way than to reward yourself with a holiday that costs nothing to you!

Retail discounts

Some credit card companies adopt strategies to create rewards programs that specifically target shoppers. With this, using their credit cards will provide instant gratification to shoppers through retail discounts and dining privileges. This way, consumers get to save when they shop, retailers gain a greater sales volume and credit card companies build more profits through merchant account charges.

Freebie claims

This is one of the most common rewards of all