Travel Rewards Credit Cards
The Benefits of Credit Cards with Travel Rewards
Are you a frequent traveler? Do you love to travel? Do you use your credit card to make large purchases every month?
If you answered yes to the above questions, then it may very well benefit you to obtain a travel rewards credit card. A travel rewards credit card is a general term for credit cards that offer consumers rewards for either airline travel or hotel stays. Either way, they are a great way to save a great deal of money on travel.
What to Consider for Travel Rewards Credit Cards
The first thing to know is that travel rewards credit cards can be quite confusing, as they all offer different rewards programs, tiers, rebates and benefits. Therefore it pays to carefully read the credit card’s terms and conditions so that you know exactly what you are getting in terms of travel rewards.
The second thing you need to know is that you will likely pay an annual fee for a travel rewards credit card. However, as most frequent travelers will attest to, this fee is quite small when you consider all of the benefits of a travel rewards credit card.
Types of Travel Rewards Credit Cards
There are generally three types of travel rewards programs offered by credit cards:
- Earn Travel Rewards Points – The most common type of travel rewards credit card are those that enable you to earn points for every dollar you spend. These points can then be redeemed for airline travel or hotel stays, depending on your card’s features.
A good example is a credit card company that offers airline travel rewards. To redeem your airline travel rewards, you simply contact the credit card company and book your travel through them. In other words, don’t expect to shop around for the cheapest deals when booking a domestic flight through your credit card company.
Expect to encounter several restrictions when using your airline travel rewards points. You must book your airline travel 21 days in advance, for example, and you must stay over on a Saturday night. There may also be a price cap on the ticket, and the ticket may be non-refundable.
- Make your Own Travel Plans – Another type of travel rewards credit card allows you to use your frequent flier miles toward your travel plans, but instead of booking your flight through the credit card company’s travel agent, you are able to make your own arrangements, thereby granting you more flexibility. For consumers who want to shop around for the best deal, this type of credit card is right for them.
- Partner with Airlines to Transfer Points – There are now some credit cards that offer travel rewards by allowing consumers to transfer their rewards points into frequent flier miles, thereby allowing them to choose the airline through which they want to book the travel and to search for the best airline travel deal.
Consider the Fine Print
Although credit cards that offer travel rewards have plenty of benefits, there are some restrictions commonly used by creditors regarding travel rewards points or frequent flier miles. In addition, each creditor will likely have a different set of rules regarding how they calculate their points, the rate at which you earn points, and the points needed to earn free domestic flights or hotel stays. Therefore, it is important to fully understand your travel rewards credit card’s point formula, as well as any restrictions or caps put on your travel rewards points.
In addition, it is best to always have an idea when your travel rewards points expire so that you don’t lose them. You may also want to search for a travel rewards credit card that offers points that never expire.
Just like any other type of credit card, you will want to carefully research the credit card’s terms and conditions so that you fully understand what you are entitled to regarding your travel rewards.
Lastly, you will also want to scrutinize the card’s interest rate, as paying too much in interest fees will end up eliminating the value of any travel rewards you earn. Many consumers who use travel rewards credit cards charge on their cards every month, but they also make an effort to pay off their bill each month as well, thereby allowing them to earn travel rewards points without paying interest.
