The Five Main Credit Card Rewards Options

If you are one of the many people whose credit card is affiliated to a credit card rewards program

, then you will probably be aware of the huge choice of rewards you can choose from. Most credit card rewards schemes offer thousands of potential rewards from vast catalogues.

Even though there may hundreds of potential options, there are five main types of credit card rewards.

1. Charitable Donations

The vast majority of credit card rewards schemes allow you to redeem your points for a charitable donation. You can exchange the points you have earned through your spending for a donation to one of a specified list of charities.

Generally, the more credit card rewards points you have, the higher the donation you can make. Donations typically start at around $20 and common charities included in credit card rewards programs include the Starlight Childrens Foundation, Oxfam and Cancer Council Australia.

2. Travel

Travel rewards are probably the most common of all credit card rewards. Typically, you can either benefit from a credit card directly linked to an airline rewards program, or you can elect for your standard credit card rewards to be exchanged for airline points.

Some cards allow you to redeem your points for any domestic or international flight by using the card companys travel service. Others allow you to exchange your rewards points for seats with specific carriers, typically Qantas, Singapore Airlines, Virgin Blue or Air New Zealand.

Most companies will also allow you to redeem your credit card rewards points for other travel benefits including car hire and accommodation. Some will also allow you to exchange points for travel vouchers.

3. Goods

Most credit card rewards programs offer a vast array of goods and merchandise for you to choose from. These typically range from a wide variety of homewares including kitchen equipment and garden furniture, through to the latest technology including portable music players and digital cameras.

You can also choose from books, magazine subscriptions, food and wine and fragrance.

4. Cash-back

Many leading credit card rewards programs offer the option of cash-back. This effectively means that you are exchanging your reward points for cash.

The cash normally comes in the form of a credit to your card account (i.e. a payment towards reducing the balance). Some card companies also allow you to redeem your points for a payment towards your annual card fee.

5. Experiences

Most cards offer a range of experiences in return for credit card rewards points. This means that you can redeem your points for everything from two cinema passes to a family day at one of Australias major tourist destinations such as the Sydney Aquarium or Dream World.

Many rewards programs also offer adrenaline experiences in return for credit card rewards points. These often include tandem skydiving, a day driving a rally car or a trip in a hot air balloon.

by: Jack Smiths

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