The following is an excerpt from a new web site for accredited and low APR credit card account holders. Read it very carefully and make sure to fully understand exactly what the card’s terms and conditions tell you.
Credit Card Incentives: A Choosing Tree
Most people are familiar with the option of having a credit card that provides a financial incentive (e.g. bonus points, travel rewards or cash back or discount) on the card owner’s purchases. By being aware of the options of providing this type of incentive, many people avoid credit cards altogether.
Why? Credit card incentive structures that are embedded in the financial agreement, most people prefer these structures to other types of agreements, including contracts such as an agreement involving a co-signer. Just as it is preferable to have a credit card that provides incentive (e.g. bonus points, travel rewards or cash back or discount) on the purchase of a product, it is also necessary for consumers to adopt the concept of “third party” credit card incentive structures.
These third-party credit card incentive structures might seem abstract and to the uninitiated lacking in abstract a solution to the problem of credit card inflow problem, but credit card inflow is a well-established problem in the financial world. Credit card inflows are the cause of the oversupply of credit available to the consumer base. It is a well established fact that in developing countries the credit card is a preferred tool for first family households, while in developing capitalist countries it is consumed by non-communist and backward segments of society.
Credit card inflow is the direct result of the credit terms of many people. The people who adopt the credit structure of credit cards have certain advantages and other incentives. One such favor is that credit cardholders earn frequent flyer miles. The regular flyer miles are the main source of motivation for the cardholder. It is then easy for the cardholder to justify the purchase of a flight to justify their purchase of regular travel.
Consumers are rewarded in terms of cash rewards for purchases made by cardholders from merchants and retailers. The credit card company and its affiliates regularly reward cardholders for purchases made from these establishments. It is up to you to choose the institution that pays you the annual fee of accruing cash rewards (if any) from the cardholders. You may do so from the selected merchants and retailers. The incentive scheme does not involve charging you the annual fee. You must take certain considerations into account when choosing a merchant and your preferred institution and also the credit-worthiness of the institution.
Consumers are encouraged to apply for a credit card through online application and credit card processing. With the application mode of payment option provided by the card which offers the most flexibility, you can fill-out the application form without applying for a card; this is a good chance of gaining acceptance.
Consumers seeking credit cards also pay all the terms and conditions. It is imperative that you can actually use the credit card for a purchase (the credit card company has a low fee) which is offered to you in the form of monthly billing statements.