
How to use Travel Rewards Credit Cards to your Advantage
Whether you travel occasionally or frequently or whether you spend a lot or little, you can earn tremendous value if you have the right travel rewards credit cards.
There are several reasons why travel rewards credit cards are beneficial. The main perk of a travel rewards credit card is the rewards you accumulate towards travel every time you charge your credit card. For instance, with some of the leading travel rewards credit cards, you can earn up to $1,000 in rewards during the very first year (depending on your charging frequency). You can also receive sign-up bonuses as a new credit card customer that can earn you up to $400-$500 if you spend a minimum amount of $1,000 to $5,000 within the first few months of receiving your travel rewards credit card. Finally, many travel rewards credit providers also waive the annual fee in the first year, which means additional savings.
Earning points for travel everytime you charge your credit card sounds pretty good, however, first be sure to find out:
- How rewards are earned
- How rewards can be redeemed
- Annual fees
- Sign-up bonus
- Foreign transaction fees
- Other perks
Several types of travelers benefit from a travel rewards credit card. For instance:
1. Business travellers
Those who frequently travel across the globe for business will certainly reap the benefits of a travel rewards credit card, especially if you’re a frequent airline flyer or if you prefer to fly by certain airlines or stay in specific redeemable hotel chains.
2. Snowbirds
Yearly vacationers (i.e., snowbirds) can also greatly benefit form a travel rewards credit card. Especially if you travel to Europe and fly between countries during your stay.
3. Frequent family travels
Do you travel to see far away family multiple times per year? Travel rewards cards not only help you save money on your destination flights, you can also gift travel points to your family to come visit you.
4. Commuters
Keep in mind that many travel rewards credit cards also let you redeem gasoline points, which is a benefit if you commute to work daily.
5. New customers
If you’re a new travel rewards card customer, pay close attention to the bonuses and welcome offers featured by various credit card companies. Choose welcome offers and bonuses that actually benefit you, for example, 50,000 bonus points on spending $5,000 within the first three months of opening your account makes sense only if you plan to spend this amount in 3- months time.