Credit cards are the common form of credit offered today. It is a card issued by financial institutions that allow users to buy and make payment using an advanced amount of credit. In this way the cardholder is allowed to use a limited amount of money as credit depending on the agreed value with the financial institution. It is, therefore, a form of a simple loan that the cardholder can use when financial resources are limited and there are bills to be paid.
Credit cards are offered as a form of credit. Repayment after using the card comes at the end of every month when the holder is required to add an amount equal to one that has been used. Despite being a form of a loan, mount provided by the card is not meant for cash withdrawals. It is extremely expensive to make cash withdrawal using the card and this is a move that aims at discouraging cash withdrawals.
Most of financial institutions are offering clients with rewards in using the credit cards. The rewards come in form of points that are accumulated upon usage of a specified amount of money using the credit card. The points accumulate over a period of time and in most instance for the entire period of the offer. Of importance in this quest is to source for reliable information regarding the promotion and hence ensure one is informed to gain from its benefits.
With every promotion, there are set rewards that clients get from the accumulated points. The rewards are made available at set points of redemption to the convenience of the cardholder. This means that upon accumulated the set amounts, the cardholder can visit the point and request to redeem the points. Every institution further has in place a number of policies that need to be followed in the profess to redeem points for prizes. Common prizes include prize cuts, free items or donations to charities as per the promotion in place.
It is not easy to make purchases when financial resources are limited. Good things come when there is no cash available to make a purchase. It is for this reason that credit cards are of much importance. Alongside ensuring there is a resource to cater for a bill when cash is not available, it is also an opportunity t increase credit rating. It means therefore that rewards that come with accumulation of points come as an added benefit to other numerous advantages in using credit cards.