Pennywise
Travel Rewards Credit Cards
by: Sahil | last updated: November 12, 2009
Category: Premium Credit Cards | Tags: Travel reward credit cards, travel points, air miles, travel, travel cards
Category: Premium Credit Cards | Tags: Travel reward credit cards, travel points, air miles, travel, travel cards
Travel reward credit cards are those that offer free miles and other services for using the card to buy airline tickets and other specific products. These cards are useful for people who travel frequently and for businesses that have to send employees for business tours. Travel reward cards are profitable for all the parties involved; the airline company, the consumer, and the credit card issuer. This is because the airline industry gets loyal customers, so do the issuers and consumers get free miles when they use the card to buy airline tickets.
An important pre-requisite for making use of such credit cards efficiently is paying off the balance in full. As with cash back credit cards paying off the balance is vital so that you do not end up paying interest. If any amount of interest is paid on the card then it subsequently negates the miles or points earned on the card.
Many people believe that this option is not good for people looking for budget rates since only a few airline companies may accept the card. Moreover some points to be considered before choosing any card is the time that it will take to redeem the points. If you spend very little and accrue fewer points over the years then a travel reward credit card is not for you. However if you are a frequent traveler with a long and good credit history then these cards can prove beneficial.
When you use travel reward cards, they often come with additional benefits such as common carrier accident insurance. This means that insurance cover is provided in case of an accident in a common carrier such as an airline or any public transport. Additional services usually include insurance if luggage is lost, and round the clock travel assistance. These services are complimentary and are usually not charged otherwise it would make the travel reward scheme redundant.
Some other points that can be taken into consideration are - if you earn rewards on everyday purchases, whether you are aware of interest rates on balance transfers, and if there is flexibility in booking and the date when the points will expire. Keeping track of all this information is necessary in order to ensure that you benefit from the travel points. Another important expense for such credit cards is the annual fee which is usually on the higher side. If you do not use the card for travel purchases then the annual fee will nullify any travel points that you have earned.
There are two ways of getting a travel rewards card; through an airline company or through a credit card company. The card offered by the airline company can be good for those travelers who have a favorite airline or who travel to only some specific destinations. However you may be able to earn miles in a faster manner if you accept a card issued by a bank rather than an airline company.
The cards offered through the credit card company provide more flexibility compared to those that are offered by the airline company. These can also be used for hotel bookings and the points can sometimes be used with other travel companies. Some credit card issuers also offer the choice of redemption of points by conversion into cash, checks, and gift cards. This can be useful if you are not sure whether you will be able to use the points that you have earned before they expire.
Some of the best credit cards that offer attractive travel rewards are Capital One no Hassle free credit card, Miles by Discover Card, Starwood Preferred Guest(R) Business Credit Card from American Express, MTV Visa Card from Capital One, American Express Preferred Rewards Gold Card, Citi PremierPass Elite Card, and Simmons First Visa Platinum Travel Rewards card. All these cards need good or excellent credit ratings and most of them have some feature or the other that may suit your needs.
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