What Kind of Incentives Do Credit Cards Provide?

Credit cards often receive negative feedback for their high interest rates. In reality, credit card users who pay their balance off in full each month will never incur an interest fee. Credit card companies offer a number of valuable incentives to lure in and keep consumers. When looking for a credit card, consider the perks.

Rewards Points

Most credit card companies offer a rewards system, such as a point for every dollar spent. Discover’s Perks Everyday system allows consumers to cash in their points for gift cards, brand-name merchandise, travel services, and charitable donation.


Some credit card companies offer discounts, such as a percentage or dollar amount off, on items purchased with their credit card. VISA has teamed up with merchants such as TGI Fridays, Target.com and New York & Company to offer discounts to their consumers.

Travel Amenities

Travel amenities such as free hotel stays are another incentive offered by American Express.

Emergency Services

Travel accident insurance, roadside assistance, lost luggage reimbursement, and emergency services are invaluable incentives offered by VISA.

Buyer Protection

Perhaps one of the most significant incentives that credit card companies offer is the consumer protection. If you purchase an item using your credit card and are unhappy with the service or product, you may be able to recoup the money you spent on the item.


Always read the fine print before accepting a credit card offer. Missing one payment may result in a significant increase hike. Additionally, remember that fees waived for the first year will reappear the following year.