Credit cards with travel rewards are popular in the market. For many people, the idea of flying for free is enough to get them to sign up for the best travel credit card. Would you like to sign up for this type of credit card too? Before you do, consider the advantages and disadvantages first.
The Pros of Travel Rewards Cards
Get rewarded for your travel expenses. Using a credit card with travel rewards gives you the opportunity to earn incentives from your spending. For example, you can find travel rewards credit cards that are affiliated with airlines and hotels so you get to earn points each time you use your card to purchase your airline tickets or book hotel accommodation.
Convenient booking anytime. Book your flights and make hotel reservations online so you can prepare everything you need for your trip in the comfort of your home. You don’t need to leave your office to visit a travel agency’s office to make the necessary reservations. In fact, many travel agencies offer exclusive discounts for customers who make advanced reservations online with their credit cards. The same is true for car rental companies. If you plan to rent a car while on vacation, you can simply make a reservation online.
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Enjoy exclusive perks and privileges. Travel reward cardholders are entitled to special privileges not enjoyed by non-reward cardholders. For example, you may be able to get discounts from affiliated shops and establishments. For frequent travelers, they can access the exclusive lounge area at the airport where they can enjoy drinks, snacks, internet access, and other facilities for free.
The Cons of Travel Rewards Cards
Points are converted into miles. Because each point is equivalent to 1 mile, the cardholder must be able to collect at least 10,000 miles points or higher in order to qualify for a free travel. This is why travel credit cards are not suitable for everyone. If you’re not a frequent traveler or not a big credit card spender, you may find it very difficult to collect the minimum required miles points to get a free trip.
Higher interest rates and fees. Since bigger rewards are at stake, airline reward credit cards or frequent flier miles rewards usually carry steeper interest rates and fees than other types of reward credit cards. If you can’t pay your monthly charges in full, the additional charges can quickly result to debt build-up. Aside from a high APR, the annual fee can prove to be expensive as well, with yearly fees ranging from $80 to $100 and above.
Related Post: How To Choose the Right Frequent Flyer Miles or Airline Credit Cards
Complicated rules. The process of earning points and redeeming rewards are more complicated than other credit card rewards programs. For example, some travel reward cards impose blackout dates and expiration on points earned. If you fail to redeem your rewards on time, you may end up losing all the points you earned and not get rewarded at all. If a cardholder is not aware of his/her privileges and limitations, enjoying the rewards can be difficult.
Ann Wilson is the head writer of Reward Credit Card Site. This resource provides consumers with valuable reviews and information on the best credit card rewards program. Its main objective is to help people to take advantage of reward credit cards and start earning reward points. Copyright © 2011
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