This article talks about how travellers who want to find the best deal look over their reward credit cards.
Reward credit cards are a way that travel can pay you back. Choosing the best credit card rewards for yourself can be hard, and you should use some personal factors to help you. How do you choose and evaluate THE credit card that gives you the best travel rewards for your needs and way of life? How do you actually look at reward credit cards to begin with?
Credit cards with rewards should be made just for you.
One thing is that the companies that offer travel rewards work on the idea that you want something and they can give it to you. The problem is that most of us don't know what that "something" is, so we tend to buy big, pretty packages that we may never use. For example, a traveller whose company pays for his or her airfare might not be very interested in a credit card that gives discounts on airfare. On the other hand, someone who doesn't like sailing might not use a credit card that gives them free holiday cruises to faraway places.
On the other hand, a frequent traveller who has a card that lets him get free upgrades on board might actually save money. The most important thing is to choose a card based on how you will use it and how the rewards will help you. Do the rewards fit in with your way of life?
The best credit cards for rewards give you both value and use.
First, think about how you travel. If a certain airline gives you extra benefits with a certain rewards credit card and you use that airline often, it makes sense to get that credit card. If you stick with one airline, you could get rewards like points, cash back, and other things that could add up to a much higher value. Other credit cards may offer fancy rewards on airlines you'd rather not fly with or that don't fly to the places you go most often. So choose a credit card with rewards that get better the more you use it.
Costs that come with a reward credit card
Hidden costs also need to be figured out. A lot of the time, travel credit cards come with high fees.
- Is it easy to turn your reward points into cash?
- Is the process hard or is there a way to do it online or over the phone?
- Will you be able to cash in your points?
- Will the reward you're likely to get over the course of a year pay for the cost of keeping the credit card?
- Is there a limit on how long I have to earn and cash in my rewards?
The type of card you want will depend on how you answer these questions.
Check out credit cards with rewards
Don't be afraid to ask the sales rep of the card company these kinds of probing questions. Most people who want to get a card won't be afraid to ask current cardholders for references. Check online forums and blogs to find out what people think of the card. Do everything you can to make sure that what you're signing up for is what you thought it would be.
There are many different types, sizes, colours, and shapes of reward credit cards. "Once in a lifetime" deals are easy to get excited about. Try to be realistic about what YOU need from the reward credit card you choose, though. In the end, if you're going to travel, you might as well use the best reward credit cards you can find to get something out of it. In reality, if you don't use a reward credit to your advantage, you may soon find that it is working against you. Then, a credit card with rewards is almost the same as a credit card with fees, which you should avoid at all costs.
