Do you own a travel rewards credit card? Are you thinking about getting one? If yes, do some research first and consider if it’s going to work to your advantage.
What are Travel reward credit cards?
Credit cards with travel rewards offer its holders the opportunity to fly abroad or fly to certain destinations for free. This is such a wonderful privilege that anyone would be delighted to have. After all, who does not want to receive a travel ticket at no cost?How does one get entitled to receive a free travel? Every time you purchase using your travel rewards card, you also earn points. The number of points given depends on the credit card issuer’s terms. The goal is to collect as much points as you can until you qualify for the free travel.
If you frequently travel, this type of rewards credit card will surely be great for you. However, most credit cards with frequent flyer programs are affiliated with a specific airline. If you often travel using different carriers, it will be better to choose a card that is affiliated with the airline you usually fly with. Also, inquire if you can exchange your miles points to cash or if there are other arrangements with regards to claiming the free travel.
What if you don’t want to travel? Aside from free travel, these types of credit cards also offer discounted rates from hotels, car rentals, gas stations, and affiliated merchants. If you have friends or relatives who often come for a visit, you can make put these discounts into good use.
Entrepreneurs who run a travel-related business, you can also use your discount points from your travel rewards credit cards. Travel credit cards are also handy if you need to take cash advances on your business trips. This feature is also helpful for travel emergencies. However, make sure that you will not be charged with high fees each time you take cash advances.
Although, travel rewards credit cards offer marvelous deals, earning points can also be difficult. For instance, you may be required to collect a large number of points before being entitled to the reward. If you don’t use your credit card as much, it may take you a very long time before you can get a single reward.
Another thing to consider is that you shouldn’t be spending on your credit card just for the purpose of collecting reward points. Every credit card holder must think thrice before charging anything on his account.
Be smart in using your travel reward credit card. Collect points but be sure you can pay off your credit card bills on time. Avoid the interest rate fees by paying off your balances completely each month.
Remember, getting stuck in credit card debt is a very serious problem. If you’ll be swamped with debt and damage your credit because of pursuing rewards, then you’re defeating the purpose of your rewards credit card.
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