Best Credit Cards – Best Rewards Credit Cards - Travel Rewards Credit Cards
When credit cards compete – consumers win! Travel rewards are often offered to credit card users as a way to encourage consumers to choose a particular credit card over another. Travel rewards may be in the form of free or discounted flights, free or discounted hotel nights, restaurants, gas, rental cars and more. For individuals who are looking to save money on future travel related expenses, a travel rewards credit card may be a good way to do it.
Travel Rewards Card Benefits
For anyone who likes to travel as often as possible, or who travels frequently for business purposes – a travel rewards card offers a number of benefits and savings. For airline credit cards, various airline companies have teamed up with credit card companies to improve the quality of the rewards. It used to be the only way to earn miles was when you purchased flights – but now, travel rewards cards allow cardholders to earn miles or rewards points for every purchase made with the card.
When choosing a new travel rewards credit card, look for cards that offer sign-up bonuses – many cards offer enough bonus rewards to take your first flight or earn your first hotel night free!
Choosing a Travel Rewards Card
When considering a new credit card with a travel rewards program, it's important to select a card with rewards you will use, as well as a card that allows you to earn rewards based on how you use a credit card. Don't pick a credit card (find the Best Credit Cards in 2011) that only offers airline miles if you only take one flight every few years! If you're not a frequently flier, look for a travel rewards card with multiple redemption options – so you can choose whether to redeem earned rewards for flights, hotels, rental cars, or free gasoline.
If you're not a frequent travel but like the idea of saving money on a future vacation, you may want to look at more general rewards card programs. Most credit cards offering cash back or rewards will include the opportunity to redeem earned rewards toward travel expenses. This is a good option for people who want to keep the opportunity to redeem credit card rewards toward future travel expenses; but who may benefit more from cash back or other merchandise on a more consistent basis.
Watch for Extra Earning Opportunities
Most travel cards offer extra rewards earning opportunities, like doubling your points or even offering three times the earning power for certain purchases. Watch for mailings from your credit card company for these promotions, and try to take advantage of them whenever possible. You may earn extra rewards for purchases made at a specific retailer, or for purchases within a certain category of consumer goods – like home improvement, travel expenses or office supplies.
Consider Travel Card Fees and Interest Rates
Some of the best rewards programs come with credit cards charging the highest interest rates or highest annual fees. When you are considering travel rewards credit cards, you need to take these expenses into consideration. Figure out how much you are likely to earn through the rewards program based on your expected credit card use; and then subtract the cost of the annual fee and amount of interest paid if you carry a balance from month to month. Will you still earn rewards or will the fees of that particular credit card cost more than your rewards earnings? Understanding these factors are a good way to selecting a rewards card that will actually be rewarding to you.