Travel Reward Credit Card Considerations

Travel Reward Credit Card Considerations

Travel Reward Credit Card Articles

A travel reward credit card is an amazing tool for getting free travel when used correctly. That means being aware that it is a reward card, and not a purchase or balance-transfer card.
To get the maximum out of the card for its intended purpose to you - not the bank - it is imperative that you pay off the balance in full every month! So long as you follow that plan in a disciplined way, you can easily accumulate a lot of travel points without it costing you anything. The key is to be very strategic about how you use the card, and be sure to keep informed about the travel reward program as you continue to use the card.

There are several other things to consider when planning to join a travel reward credit card program. Often these come as surprises to those who did not do their research before applying and committing to a program. Some of these considerations are:

• Your Credit Score

• Grace periods and interest hikes

• Travel Blackouts and Restrictions

• Hidden Fees

Your Credit Score

Generally, to be accepted into a travel reward credit card program, you must have an excellent credit score. The best rewards program require the best credit records, and even the lower end programs need you to have at a 'very good' score. If you have poor credit, or are maxed out in your debt to income ratio, then you will have to consider a strategy for overcoming that problem in order to qualify for the travel reward credit card you are interested in.

Grace Periods

Most credit cards have a grace period, which means a period beyond the day when a payment is due that they will still accept the payment without it affecting your relationship with them. If you are being a disciplined credit card holder, then you will still have time beyond the due date to make your payment in full without it incurring interest charges. This is important if you don't want to have to start paying extra money for your rewards points.

Travel Blackouts and Restrictions

Many of the travel reward programs that credit cards are associated with have a lot of date restrictions, called blackouts, and travel restrictions, such as what seats you can get and when. Some of the rules these companies come up with are ridiculous, and make reward travel a real chore. Be sure to check out the rules of the program you are interested in before committing to the program. Also, check online for forums or reviews where people talk about the rewards program. Blackouts and restrictions are the bane of most reward programs, but some offer exceptional flexibility. Read our article finding a flexible travel reward credit card for things to watch out for.

Hidden Fees

Sometimes credit card companies like to slip in hidden fees, particularly in the form of 'card holder insurance'. This is a special insurance that is to protect your interest rate and credit score in case you should not be able to pay your balance at any time. Of course, you are charged for the privilege of having the service, and all fees are extra money that you are paying in exchange for rewards points. Read the fine print and review your charges every month to be sure you are not incurring any extra fees on your card.

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