Credit card transactions are rising all around the world and although we often expect credit card providers and card issuers to behave responsibly, some of the most common credit card spending patterns and practice continue to increase. These seemingly simple differences, including frequent flyer miles and credit card rewards, may seem obvious but often come across as an over simplification of the circumstances of a consumer.
What often happens is that credit card issuers and credit card providers keep increasing the frequency of their credit card rewards programs and card holders, increasingly, are rewarded for using their credit cards frequently. Frequent flier miles, for instance, have become fairly uncommon – the credit card credit card program allows you to exchange miles for a free hotel stay, for instance. And often, you will get double flyer miles for your next vacation, for instance.
The reward patterns that credit card providers are increasingly employing are clearly designed to increase those profit margins and earnings per spent percentage (EPS) for their credit card partners, as well as for travel companies who have established partnerships with card providers to provide high-ticket vacations.
But the basic fact is that credit card rewards programs are designed to make more money for the credit card provider than the items consumers will buy with their credit cards. This is especially true if they are being offered for the very first month – not because they are special promotions designed to get people to hold more of their credit cards – but because they work to increase the earnings per spent percentage for the credit card issuers as well as for travel company partners.
It is unfortunate that people of good means are regularly tempted by a credit card company or credit card provider to spend more on their card and/or purchase other credit cards. However, with the amount of credit card rewards available on offer, many people begin to question how they can spend more than they actually have on their credit card. Why spend more than you have at your disposal when you can simply be tempted to spend more? That is why it is so important that the credit card rewards offered by credit card providers be tailored to both users of credit cards and credit card providers especially when it comes to getting maximum profits from the cardholders on the earned reward.
Copyright 2005 Ed Vegliante.
Credit card cards and credit card debt
There are two kinds of credit card: those that are issued or the ones that are not. The first kind is where the consumer chooses to obtain a credit from. These cards are for its first use only. At least when the consumer uses the card for this first time but after no more uses, it will be charged to theirs.
The other kind of card is those issued by a bank or other established credit card company which are kept by traders. What they serve is that traders are allowed to lend the consumer some of their money (some who will lend even less) at interest rate and charge rate or at higher interest rate of interest to keep those lesser amount lent by traders (traders) in good standing (banking or other).
The use of a credit card by a trader is a relatively easier procedure and is a matter of easy decision. However, there will be an element of confusion with the use of credit cards by these consumers. In the same that has to be taken into account is the fees for collection of funds as well as of those who are involved in the collection of those funds from the traders. It is good if this is taken into account when considering credit card usage.
There are three main types of credit card: those with no charges, those for whom the trader charges nothing and those for whom the trader charges no charges. It is easy to be confused with the other two types of credit card. All such types of credit cards are for making others pay a charge; whether the trader charges zero charges or whatever the case may be.
Credit card with automatic renewal (credit card rebate)
To avail your rebate, you must have a credit card with automatic renewal. The automatic rebate means that the introductory offer for credit cards is automatically renewed for a period of one year. In case of cancellation of the rebate, the money is deposited into your checking account in the same manner as if you had applied for the credit card. The money is kept in plastic and if you have been a user for the last three years it can be transferred with your consent to your rebate.
The credit card company can either give you the details of your credit card rebate online or through email. You can avail the rebate or ask for one to be given to you yourself. After your rebate has been obtained, you have no liability for the money and your account is automatically credited again.