@Jimmy,
Thanks for the question. There are certain credit cards worth using over others based on your lifestyle. It would depend on your travel habits and spending patterns. Typically, it may make better sense for the average traveler to use cash back credit cards (perhaps like a Discover credit card or American Express card) to get rewarded in cash, rather than to use specialty travel cards to build up points for mileage, hotel accommodations or other non-cash rewards. But you may find that travel cards may be fruitful under certain conditions. Some points to consider:
1. Last minute travel: Paying for last minute travel accommodations can be expensive. So if you’ve earned a free ticket or hotel stay using points, it can turn out to be the best value under these circumstances.
2. Bonus points? Some travel cards offer bonus points to card members on occasion. Extra points can be an incentive.
3. Flexible terms, conditions and transferable rewards: One complaint I have about travel cards is how limited they typically are with how you can use your earned points. But some cards like Starwood Preferred Guest (from American Express) allow you a lot of flexibility, giving you rooms for a good deal (using points) and allowing you to transfer points for airline ticket purchases.
4. Fees and charges.
Before using rewards credit cards, weigh their perks and rewards against their fees and charges. You’ll come out ahead if you know how to leverage them. If you can pay your monthly credit card in full and you find yourself using these cards frequently, these cards are a good option.
Just HeidiFebruary 5, 2012 at 12:11 am
Scour the fine print for exclusions on rewards programs — you don’t want to book tickets for a trip only to have your plans fall through because your points aren’t up to par.
{ 3 comments… read them below or add one }
Many travel credit cards have annual fees. Should I use them or go with a general rewards card with no fees?
@Jimmy,
Thanks for the question. There are certain credit cards worth using over others based on your lifestyle. It would depend on your travel habits and spending patterns. Typically, it may make better sense for the average traveler to use cash back credit cards (perhaps like a Discover credit card or American Express card) to get rewarded in cash, rather than to use specialty travel cards to build up points for mileage, hotel accommodations or other non-cash rewards. But you may find that travel cards may be fruitful under certain conditions. Some points to consider:
1. Last minute travel: Paying for last minute travel accommodations can be expensive. So if you’ve earned a free ticket or hotel stay using points, it can turn out to be the best value under these circumstances.
2. Bonus points? Some travel cards offer bonus points to card members on occasion. Extra points can be an incentive.
3. Flexible terms, conditions and transferable rewards: One complaint I have about travel cards is how limited they typically are with how you can use your earned points. But some cards like Starwood Preferred Guest (from American Express) allow you a lot of flexibility, giving you rooms for a good deal (using points) and allowing you to transfer points for airline ticket purchases.
4. Fees and charges.
Before using rewards credit cards, weigh their perks and rewards against their fees and charges. You’ll come out ahead if you know how to leverage them. If you can pay your monthly credit card in full and you find yourself using these cards frequently, these cards are a good option.
Scour the fine print for exclusions on rewards programs — you don’t want to book tickets for a trip only to have your plans fall through because your points aren’t up to par.