With so many competing offers out there for credit cards, a consumer with excellent credit has many credit card options from which to choose. Taking the time to shop around for the best travel rewards credit card is worth the time and effort considering that you will want to try to stay with a program for years to come.
While most airlines and hotel chains offer their own branded credit card, they generally do not allow you to use earned miles or points toward a competitor's product. Even if they do, the value of the miles is typically diminished when they are exchanged for a flight or room with another company. The best approach is to apply for a credit card that offers you miles or points that can be applied toward a wide variety of your travel expenditures such as airfare, lodging and car rental. Some programs even offer vacation and cruise packages in exchange for points earned.
When shopping for a card, take into consideration your personal financial situation. Ideally you want a card for which you will be paying off the balance each month. For one, credit card interest rates are expensive and secondly, you do not want to get into a situation where you are not using your rewards card due to a high balance. To maximize the value of a travel rewards card, using it for all purchases will allow you to accrue as many points as possible. It also consolidates all of your purchases under one card which makes tracking your monthly spending patterns easier for budget purposes. Since you are paying off the balance each month, interest rates are not as much of a consideration. Instead, focus on getting a card with no annual fee. Annual fees are an unnecessary expense for most credit card holders. Another factor to consider is how many points or miles are earned for each dollar spent. Some programs offer higher rewards for all purchases or for purchases made at certain businesses.
Once you have narrowed down your options, take a look at the fine print for each travel rewards program under consideration. Are there a wide variety of airlines, hotel chains and rental car agencies available for point or mile exchange? If you have any favorite places to stay or your local airport has limited options, make sure those companies are part of the credit cards program. Another important consideration are black-out dates. If you like to fly every year during a specific holiday weekend, you may find that miles may not be exchanged for tickets during that time period. It pays to research this information in advance of applying for a card and earning the miles.
Finally, when you apply for a card, pick one so that there are not several inquiries on your credit report in a short period of time. If you have excellent credit and employment history, it should be easy to apply and receive a travel rewards credit card. If your credit history is less than excellent, some online sites make it easy to find programs that are more willing to approve applications from a wider range of credit profiles.
Once you have your card, pay for everything possible with your credit card, as long as you are able to pay it off in full each month. Groceries, rent and utilities are expenses that are usually possible to charge each month. Bear in mind that if any company tries to charge you a fee for using your credit card, it is probably better to pay with cash or check. With regular use, you will find that your travel rewards card will reduce your annual travel expenses considerably and make vacations less expensive.
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