Credit Card Incentive Program for New Car Purchases and Gas | CTFA Exam Prep

Credit Card Incentive Program

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Question

About half of the credit cards are rebate cards, and new cards are introduced every day. In one credit card incentive program, a number of credit cards allow cardholder to earn annual rebates of up to 5% for new car purchases or leases and gas and auto maintenance purchases up to specified limits.

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A

The credit card incentive program described in the question allows cardholders to earn rebates of up to 5% on certain types of purchases related to automobiles. These purchases include new car purchases or leases, as well as gas and auto maintenance purchases, up to a specified limit. Based on this description, the answer choice that best fits this program is "Automobile rebate program."

A rebate program is a type of credit card incentive that rewards cardholders with a percentage of their spending in the form of cash back or other rewards. In this case, the rebate program is specifically geared towards automobile-related purchases, such as new cars or maintenance expenses.

The other answer choices are less likely to be applicable to this scenario. A frequent flyer program, for example, would offer rewards for air travel purchases, rather than automobile-related purchases. An other merchandise program might offer rewards for a wide range of purchases, but would not be specific to automobile-related expenses. A balance transfer program would involve transferring existing credit card balances to a new card with a lower interest rate, which is not related to the scenario described in the question.

In summary, the credit card incentive program described in the question is most likely an Automobile Rebate Program.