If you are dreaming of a vacation but have a tight budget, Travel Rewards credit cards are one of the best ways to turn that dream into reality. Today, everybody is swiping their plastic cards to pay for gas, groceries, and their monthly bills. You can turn those swipes into your dream vacation where flights and accommodation are paid for, and you can even get some extra cold hard cash just by showing your loyalty to a credit card.
In the competitive market to get customers, Travel Rewards credit cards are offering more bonuses, loyalty points, discounts, and more. By taking advantage of this, you can get loads of free tickets, accommodation, and more.
You might be searching for the best travel credit card, but the truth is, there is not a single best one. Not all Travel Rewards credit cards are created for every individual. While some reward cards work best for small business owners, and others work best for students. All credit card companies offer different benefits that suit different people. Additionally, some have fewer benefits, while others have more restrictions. Customers need to not only consider the earnings but also the value and point redemption. Variety and flexibility are equally important in making reward programs lucrative, enjoyable, and worth it.
Things To Consider
Sign up bonuses – Most Travel Rewards credit cards offer a huge sign up bonus anywhere from 25,000 – 50,000. If they are not offering a sign up bonus, don’t even consider the card – it will simply take too long to get redemption.
Points per dollar – Most credit cards offer one point for every dollar spent. However, the better credit cards will give you extra points when you shop at specific retailers or brands. Therefore, you can make 2-3 points with every
Annual Fees – Unfortunately, annual fees are common with Travel Rewards credit cards. Many company’s charge between $50-$150 per year. However, these fee-based cards do tend to give better rewards, faster point accumulation, and special offers. Generally, you will save more with the rewards than what you spend on a yearly fee.
Foreign Conversion Fees – Since you are using your card to take a vacation, you should look into their foreign conversion fees. The majority of credit cards charge a 3% fee when you use them overseas. Credit cards are great to use because you get a good exchange rate from them but if you are paying a fee every time you use the card, then it doesn’t become as good. Some cards offer zero foreign transaction fees, so if you plan on traveling abroad for an extended period of time or frequently, search for a rewards card that offers a good exchange rate and low or no fees.
“Churning and Burning” – This refers to when people open or “churn” multiple credit cards, which ends with them burning in huge debt. Consider your financial situation, before you even think about applying for new cards, you need to make sure your credit is in order and you have an adequate credit score.
How to make the most of your Travel Rewards Credit Cards
Strategize – Don’t just sign up for every card with an okay offer. Decide where you want to go, and what trip you want to take. Once you have this goal in mind, focus on a card that will get you there, save you the most, and allow you to fly on the airline you prefer and stay at the hotel you want.
Sustainability – The best cards out there are the ones that allow for sustainable points earning through your spending habits. Make sure you can use your frequent purchases towards your vacation and reward system.
Research – See what bonuses, special offers, etc. that the credit cards you’re interested in have historically offered, and choose the best one.
Decide why you want the card – are you loyal to a brand, seeking free rewards, avoiding annual fees, free foreign transactions, elite status, hotel points etc. Once you have answered that question, you can start eliminating a lot of Travel Rewards credit cards.
Travel Rewards credit cards can be a great way to get a free vacation, however, the process does require a lot of homework. If you are willing to sit down and go through the nitty-gritty, then credit cards are such a great way to earn miles and reward points just buy spending on the things you usually purchase.