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Which Credit Card is Best for Travel Rewards?
Credit cards offering travel rewards are becoming as widespread as the latest viral YouTube video. And they can be just as annoying. Understanding the fine print and the ins and outs of how the rewards points work often requires not only the kind of spare time that nobody has anymore, but also a PhD in cryptography. We're going to take some time here and try to save you a trip to the emergency room for undue mileage-card-related head trauma.
Bank Cards vs. Airline Cards:
So, which credit card is best for travel rewards? Bank Cards or Airline Cards? Well, cards that are linked to specific programs (often, but not always, airlines), offer rewards within that program, as well as opportunities to extend rewards to partner companies. These can include other airlines, hotels, car rentals and even mortgage companies. The points system with airline credit cards generally functions in the same way as frequent flyer miles, allowing you to earn points for the miles you fly. In other words, when you go visit your grandmother in Poughkeepsie for Thanksgiving, you rack up points for all 1,200 miles. These add up quickly and can be extremely useful assuming you have plans to use the programs with which your card is associated.
Bank Cards work a little differently. In general, bank cards offer points corresponding to dollar-amount expenditure. For example, if you purchase (with your credit card) a round-trip ticket to Reykjavik for $500.00, you will (in most cases) receive 500 reward points. However the actual flight mileage (which, depending on your initial starting point could be upwards of 5,000 miles) will not be accrued in any way.
Looking only at this information, it would seem that an airline card is the obvious choice, but before you run out to apply for your favorite program's card, it is important to consider the redeemability of rewards. With airline rewards programs, the consumer often (all too often) runs into difficulties with restrictions. Black out dates and other restrictions can quickly become the source of frustration, and what good are 10,000 unredeemable points?
Bank cards on the other hand, have made it a point to be flexible and offer 'hassle-free' point redemption. While they offer fewer points, they count on the ease of use to push them ahead of the competition. This is not to say that all airline cards should be thrown out. Simply look into the restrictions set by your card to determine whether they are ones you can live with, or if the fewer miles/ easier to use plans the bank cards offer best suit your needs.
It is important to note that most companies actually offer both kinds of cards, and are, in essence, competing with themselves for your patronage. Having two different cards (one for mileage, and one for other travel purchases) might be an option for the serious traveler.
About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer no annual fee credit cards, low apr credit cards, fair credit credit cards and much more.
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