When in search for a reward credit card, you will come across cards that are especially designed for travellers. If you frequently travel either for business or pleasure, you will find that a travel rewards card will be beneficial for you. In this article, let's take a look at the four things you should look for from a travel rewards credit card.
Big reward points. Look for a travel rewards card that will give you bonus points simply for signing up. You might even be rewarded with additional points when you make your first purchase using the credit card. This is a great way to rack up points more quickly so you can get the chance to fly for free at a sooner time
Some credit cards with airline miles rewards offer double points for purchases made from affiliated merchants. See to it that the affiliated merchants are those that you patronize often so you can make the most out of the reward program.
Reasonable interest rate. Most credit cards with rewards carry higher interest rates than non-rewards cards. However, this does not mean you should settle with a card that carries an expensive APR. By doing comparison, you should be able to find a reward credit card with affordable APR.
Some rewards cards even offer a low or zero introductory rate which you can take advantage of. However, before signing up, see to it that the regular APR will still be reasonable beyond the introductory period.
One important reminder to remember is to pay your full balance each month to completely eliminate the interest rate charge from your bill.
Low maintenance cost. How much will it cost you to maintain the Frequent Flier credit card or airline miles reward credit card? Some cards carry very high annual fees. Annual fees can range from $50 to as high as $100 of even more. Consider this: if you have to pay $100 each year just to keep the account active, is the card still worth keeping? Will you be earning more rewards than the fees you pay?
Other charges that you need to check out are the late penalty fee, over-the-limit fee, currency conversion rate, balance transfer fee, cash advance fee, etc. See to it that you are not forced to spend extravagantly on your travel rewards credit card to get rewarded.
The Reward Program. Before signing up for a travel rewards card, see to it that you are clear about the terms and conditions of your chosen card. What are the rules on collecting miles points? What kinds of purchases make you eligible to earn miles points? What is the minimum required number of miles before you can redeem your free flight?
Does your travel rewards card impose a blackout date? Will your points expire if you fail to redeem them within a specified period? What happens if you fail to submit your payment on time? Aside from the rules of collecting points, you should also be aware about the limitations.
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of http://www.newhorizon.org such as their continuous effort in giving out Free Credit Repair Ebook. NHBS also has a list of recommended Reward Credit Cards.
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