Rewards Are Received As A Cash Rebate Or A Credit To The Cardholders Account

Category: Finance, Credit.

With credit cards, there are varying degrees of the benefits you receive from using one.

These often have reward programs that provide a greater benefit of use than regular ones. Most card companies offer higher levels in the form of platinum cards. Platinums usually have a lower interest rate than regular and even gold credit cards. This low interest rate is a reward to platinum customers for the amount of purchases they make using the platinum card. In nearly all cases, platinums are offered to those consumers who use their card to make a relatively large amount of purchases. Obtaining a platinum credit card isn t always as easy as obtaining the lower level credit cards.

The credit score requirement is related to the amount of credit the card issuer gives with the platinum credit card. Most companies require applicants to have a good credit score to receive the platinum credit card. Since the credit limit on a platinum credit card is higher than most cards, the card issuer must have some assurance that the cardholder will pay the balance in a timely manner. Companies use these rewards as a way to urge cardholders to make purchases using the platinum. One of the notable characteristics of platinum credit cards is their reward programs. Cash rewards are one of the most popular rewards offer. The percentage awarded in cash ranges anywhere from 1% to 5% with the average reward being around 3% .

The cash rewards are given as a percentage of the amount of purchases made using the card. Rewards are received as a cash rebate or a credit to the cardholders account. After accumulating a certain number of points, the cardholder can redeem the points for items offered through the credit card issuer. Many platinum credit card companies have a point system that rewards points instead of cash for the purchases made using the plastic. Most commonly, points can be redeemed for merchandise, and travel arrangements, gift certificates. If you are not eligible for a platinum card right now, you can begin taking steps to become eligible for one in the future.

The opportunity to receive a platinum is a good reason to be responsible with your credit. The most important thing for you to do is pay all of your bills on time. When you feel you have outgrown your classic or gold credit card, seek a platinum one for additional purchasing power and benefits of using it. Should you receive an offer for a platinum in the future, your past credit responsibility will be a major factor in your eligibility.

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