Incentives are those things offered by credit card companies and others that are encouragement to buy into their plans versus another company’s credit plan. Incentives are increasingly lucrative and competitive, too.

Rebates and Cash Back Programs

In the interest of competing, many credit card companies are trying to lure customers with promises of “cash back” or “rebates” on purchases made. Do these actually pay off, though? The promise of money back is always quick incentive and sounds pretty fool proof. However, the fact of the matter is, that while there are many card companies offering such incentives, only a few actually make a difference to your account’s bottom line. Most experts suggest shopping really carefully for cash back promotions. Know when the cash back is credited to your account. Monthly credits are preferable, and not always the norm. Also, will the percentage back actually make any difference?

Gas and Travel

Cards that offer money back on gas purchases or propose to rack up your airline miles are perennial incentive programs offered by many card companies. These incentives are becoming less and less interesting, but are still a good deal for many travelers who actually earn enough sky miles to use them. Often the savvy traveler manages to parlay those free miles into even more frequent flyer miles that they accrue with specific carriers, truly cashing in on their card’s rewards.

Shop and Earn Money

There are a number of credit card companies that are combining business with a few department stores and providing credit cards like Visas and MasterCards for those customers who enjoy shopping their associated store. These cards are called co-branded cards. Once again, make sure you know the associated interest rates on these cards. Is it worth using a co-branded card to shop your favorite store or should you simply stick with your lower interest card regardless of cash back incentives that might not make up the difference?

Making Incentives Work

The key to really making a winning deal out of your credit card is to find one that offers an incentive program you are actually dedicated to using, whether it is travel rewards, gasoline purchases, or more lucrative rewards programs. The truth is, though, that many consumers just do not take the time to engage themselves with the rewards offered and those that do are few and far between.