Travel Reward Credit Card Articles

Choosing a Travel Reward Credit Card

The first thing to consider before choosing a travel reward credit card is: what do you want it for? This might seem pretty obvious, but a lot of people will simply apply for a card because an application came in the mail, and it is not until later, and after a lot of money has gone out, that they realise it is not what they needed in the first place. Here are four points to consider before saying yes to a card:

1. Does the card offer rewards other than travel?

   Some people are focused and dedicated to saving points for travel, whereas others simply want points to add up that they can use however they see fit. Many cards offer such reward programs, allowing the user to redeem points for anything from movie tickets to ipods to free groceries. Many also offer cash back. Unless you are absolutely certain that all you want the card for is travel then check the options.

2. Is the card associated with only one airline reward program?

   Some travel reward credit cards are put out by the airline themselves, others by banks on behalf of the airline. There are many restrictions with these cards, and generally the biggest restriction is that the reward points can only be used in conjunction with one reward program, thereby limiting choice as to available flights, black out periods, etc. Check with the card and the airlines rewards program to see how the two fit together and whether or not it is right for you.

3. Does the airline fly where you want to go?

   For those cards that are associated with only one airline, it is important that you know the flight routes of that airline. Points built up on a travel reward credit card are often non-transferable to another program, so if you find out after the fact that the airline does not fly to destinations that you would like to visit, you have just wasted all that effort that could have gone to a card more appropriate to your plans.

4. Will you be charging enough to the card to make it worthwhile?

   Many travel reward credit card programs require an awful lot of purchases to equal enough points for a trip. If you do not use your credit card very often, and you don't have a plan for making a lot more use of it, a travel reward credit card may simply not be for you. Again, if the card offers rewards other than just travel, at least you will be able to make use of a lower balance of points. Saving for travel is a fine idea, and some travel reward programs allow you to also buy points, but it is important to decide if you would just be better off putting cash into a savings account than attempting to get enough free points together for a flight. If you are a disciplined user of the card, and particularly if the card has no annual fee, then there is nothing wrong with saving up free travel points. But if you are the kind of person who carries a monthly balance, or it the card has a hefty annual fee, then you may be better off without one.

A travel reward credit card can be an excellent tool for those seeking free reward travel, but many of the programs are fairly inflexible in terms of redeeming those points. Be sure to consider the four questions raised in this article before committing yourself to a specific card. Once you have compared and decided on an appropriate card for you, then go for it and start saving up points for your dream trip!

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