If you spend a lot of time traveling, you have likely heard about credit cards that offer rewards for travel. However, you also may have heard from friends or associates that they can be so restrictive as to make them a hassle to use. Luckily, the travel reward card market has gotten much more competitive and it may be a good time to look into the options again. With some understanding and good management, these cards can really cut down on your business and traveling expenses.
In the purest form, there are many cards that actually issue miles for each dollar spent. Sometimes the ratio is one to one, but it is often two to one. In other words, for every one dollar that you spend (and pay off!) on the card, you will earn two miles of travel. Your miles will accumulate on your card account and can be cashed in for actual airline tickets. Your card may have preferred travel providers that they are affiliated with. They may either restrict the use of your reward to those affiliates or just offer a discount as an added incentive to use them. Also, there may be restrictions on travel times and even seating. However, you should look for a travel reward card without as many restrictions. The competition has really driven this market segment and the card providers realize that you need as much flexibility as possible and are starting to offer reward cards that provide that.
In addition to the cards that offer straight travel miles, there are also several others that fall into a category that can be classified as a travel reward card. Some cards are affiliated with a hotel chain, for example and will allow you to accumulate points that are good for hotel stays. Other cards that offer straight rewards points have a relationship with airline or hotel chains and your points can be redeemed at a premium when you book with those affiliates. These cards are actually the most flexible as they can be used for much more than just airline miles. You can get a cash back check, redeem for gift cards and even merchandise.
When you looking at getting a travel reward card, you should always check the other terms carefully. You will be required to have very good credit to get a good rewards card. You will also want to carefully screen for a good APR rate and fees associated with the card. Many of these cards require an annual fee, so you'll need to determine if that fits into your budget. Also, to get the most out of these programs, you will want to shoot for paying off your balance as you go. However, if you travel a lot, these are definitely the cards for you.
Article By Louis, CardKudos[dot]com
Get more tips and reviews about using a travel reward card as well as related credit card articles such as credit card comparison at Cardkudos.com.
