Many credit card companies advertise and offers great rewards programs. But are credit cards with rewards really as rewarding as they promise to be?

A Brief History of Reward Credit Cards

The first credit card was introduced in 1950. Frank McNamara came up with the Diner’s Card, a credit card which can be used to pay for restaurants and diners. According to the story, Mr. McNamara was having a business meeting at a restaurant when he encountered an embarrassing situation. He forgot his wallet and his wife had to bring it to him so he could pay for his bill. Since then, the Diner’s Card was born and the emergence of other credit cards started.

In 1986, Discover launched a cash back rewards program for its credit card holders. They also came up with the “frequent flier” rewards program in a tie up with Continental Airlines. Since then, the competition among different credit card issuers and banks brought about different types of credit card rewards that offer discounts, cash rebates, and free travels to customers.

Today, credit card rewards programs offer specific incentives that matches a customer’s lifestyle. Banks have also paid attention to business owners and have come up with business credit card rewards programs. Generally, reward programs are done with the support of participating establishments, gas stations, merchants or airlines. Thus, the incentives that credit card holders can receive vary from free fuel, free travel tickets, and discounts from various types of stores. continue reading about Rewards Credit Cards – Are They As Rewarding As They Promise To Be?