What are rewards credit cards?
Rewards credit cards are credit cards that offer a consumer points per dollar spent on the credit card. After a certain amount of points have been accrued then the points can be redeemed for rewards that the credit card lender offers. These days rewards are offered on a wide variety of goods and services, not just the traditional travel related rewards such as flights or hotel stays.
Rewards credit card schemes take a number of different forms including classic rewards programs, personalised rewards, cash back and instant rewards. Most rewards are either partly or wholly financed by merchant fees, the fees that are paid by shops or service providers for processing the credit cards.
These classic or typical rewards programs are most suitable to the consumer who pays out the balance on the credit card in full each month. This way they can spend on the card (and accrue points) without allowing the interest rate to come into play. This is important as the interest rates charged by most rewards credit cards tends to be higher than than the most competitive cards.
A major drawback with some of these types of rewards programs is that the rewards are specific and can be inflexible and may only appeal to a certain set of people. Free flights and hotel stays for example would appeal more to people wholike to travel or travel frequently for business.
Are there any instant approval credit cards with rewards?
Instant approval credit cards come in all shapes and sizes. There are rewards cards avaiable in the instant approval variety. However these may not necessarily be the most rewarding cards for your specific needs. The cash back card is a rewards card that will suit most. These cards “pay back” a percentage of the spendings the card was used for. They usually pay less than the rewards credit cards would do, but cash is cash and can be used in whichever manner the card holder chooses.
Instant rewards schemes are when a card gets a discount or a free upgrade for paying with the card. These are limited to certain brands, often the brands that issue the credit card although there are some more extensive schemes that are offered. These suit frequent customers with that brand.
At the end of the day rewards programs suit credit card consumers who use their credit cards frequently and for everything imaginable. Those who get the most benefit from rewards credit cards are using their credit card daily and transferring funds from a bank account to the card account to bypass interest rates and accumulate points quickly.
