Some smart souls take their credit card, cut it into a million pieces, and walk away without a backward glance. Other smart souls take their card and tuck into their wallet only using it if they find themselves facing an emergency. Still other smart souls use their credit card for regular daily purchases and then pay the subsequent bill each and every month. A few smart souls even use their cards to splurge and then spend the rest of the month digging through the couch cushion looking for spare change when the bill arrives in the mail.

Which type of customers do you think the credit card companies prefer?

The goal of the credit card companies is to take each and every smart customer and turn them into someone who use their card daily and then pays the monthly bill. Customers, who ignore their card, while financially responsible, are not the company’s idea of an ideal customer. In an effort to convince the customers who aren’t using their cards and in the hopes that maybe a few that use their cards a little too much the credit card companies offer incentive programs.

Company incentives are rewards companies dangle in front of their customers in hoping that loyal customers will continue to use their card, that new customers will sign up for a new card and then continue to use it until they are considered loyal customers, they hope that credit card carriers all over the world will forget that any other credit card company’s exist.

To lure new customers credit card companies often offer a lower introductory rate. This rate is often less then half of the usual interest rate. This rate is normally good for the first six months to a year when the interest rate returns to the standard rate. By the time the interest rate increases the company is hoping that the card holder is in the habit using their card to make purchases.

Another incentive credit card company’s and their customers love is cash back. For each doller the consumer the credit card will pay a portion of it back. It normally appears in the form of a check once a year. The amount is nominal, normally just a few cents on the doller but the sight of the check is enough to lift the spirit. After all if you’re going to spend the money anyway why not get some of it back, no matter how small the amount.

Offers of free airline miles entice customers. The idea of flying for free is often all the encouragement cardholders need to pull out their cards and start racking up the points. This particular incentive should be a double bonus to the credit card company. Not only are they encouraging customers to use their card to earn airline miles but the odds are also good that the same customers will also use the same card while they are on their vacation to do things like book a hotel, rent a car, buy dinner, and purchase souvenirs.

Some cards offer roadside assistance. If you drive into a ditch or run out of gas they will came save you. Since this is an incentive that is also offered by most motor clubs and car insurance companies it isn’t as heavily utilized as some of the other programs.

In some situations the card itself is an incentive. The cooler the colors, the more personalized the design the more likely a customer is to the use the card simply to show it off. This is especially true of teenage customers.

Company incentive programs offered by credit card companies make the credit card company happy because they feel that they encourage cardholders to use their card and not their competitor’s card. Company incentive programs offered by credit card companies make the card holders are happy because they are getting rewarded for money they probably would have spent anyway. It’s a win-win situation.