A credit card rewards program is a loyalty program that offers cardholders rewards points, miles, or cash back for using their credit card to make purchases. These rewards can typically be redeemed for a variety of items such as travel, merchandise, or statement credits.
In 2023, credit card rewards programs typically work as follows:
- Cardholders earn rewards points or miles for every dollar they spend using their credit card. The number of rewards points or miles earned per dollar spent may vary depending on the type of purchase and the specific rewards program.
- Cardholders can redeem their rewards for a variety of items such as flights, hotel stays, merchandise, or statement credits. The value of each reward point or mile may vary depending on the specific rewards program.
- Some credit card rewards programs offer additional benefits such as concierge services, travel insurance, and extended warranties on purchases.
- Cardholders may also be able to earn bonus rewards by spending in certain categories, such as travel or dining, or by using their credit card to pay for certain types of purchases, such as gas or groceries.
- Credit card rewards programs may have expiration dates for rewards points or miles, or may require cardholders to maintain a certain level of activity in order to keep their rewards from expiring. It’s important for cardholders to pay attention to the terms and conditions of their credit card rewards program in order to maximize the value of their rewards.
