Credit cards not only offer free credit for a specified time, but also reward users that use their cards more often.
Rewards, perks, and bonuses are marketing incentives that create a win-win situation for both credit card companies and consumers.
Credit card companies are eager to attract customers by addressing their specific interests and needs which has led to the introduction of different types of credit cards like cash back credit cards and travel rewards credit cards.
It is easy to make out the purposes of the credit cards from the names as the intention of targeting specific customer segment is very clear.
Travel rewards credit cards are ideal for those who often travel either to satisfy their wanderlust or for some business or official work.
This type of credit cards is exclusively for those who travel because the rewards accrue only on account of using the credit card for travel by air only.
To qualify for rewards, you must have the ability to spend and charge the amount on credit cards as required besides ensuring that you can pay off the balance outstanding on the card every month on the desired date.
Remember that even if you love traveling, to earn rewards and redeem it, you must travel some fixed distance which means that frequent traveling becomes a condition without stating it.
Unless you fly quite often, the rewards from travel credit cards will remain out of your reach till the time you fulfill the required traveling miles that help in earning rewards.
Your ability to charge high amounts on the card should help you to earn significant points or miles, as stipulated in the card.
You can even compare frequent flyer credit cards to evaluate which type of credit cards would be beneficial for you.
Card Usage Linked to Travel Rewards
The more you use the credit card to buy air tickets meaning the more money you charge on a travel reward credit card more will be the rewards in terms of points or miles accumulating in your account.
If you frequently travel for business or otherwise, travel rewards credit cards come in handy as you can redeem the points or miles to earn a discount on the price you pay for the current travel.
Redemption of the reward points makes you forget the high cost of air travel as the airlines are ready to reward you for traveling often.
Making Credit Card Payments on Time
While the rewards of miles or points reduce your cash outflow by discounting the ticket price to some extent, still you will have to pay some amount against the credit card bills.
The APR or the interest that you must pay is usually quite high for travel rewards credit cards.
If you fail to pay the credit card bill on time, you lose the benefits of the rewards to a good extent.
Therefore, when using travel rewards credit cards, you must ensure the timely payment of the bills every month.
This would guarantee that you do not accumulate high interest and fees that multiply every month at a compound rate.
To get the most from travel rewards credit cards, it is wise to limit your spending to one credit card and pay the monthly bill without fail.
This should help to accumulate the amount needed to earn significant miles or points.
Good for Business Owners & Employees
Travel rewards credit cards are especially good for business owners and employees only if they have company cards issued in their names.
They can charge the expenses of traveling to the travel rewards credit card and earn reward points and miles while the accounts department makes the payment for the balance on the monthly bill.
It is like a double benefit for business owners and employees who earn rewards without having to pay anything from their pocket.
Mind the Limits
Although travel rewards credit cards encourage more travel, it does not mean that you can travel to any extent during a year to rack up maximum rewards that help you to go on a free vacation.
Credit card companies are issuing travel rewards credit cards usually have a capping on the availability of reward points or miles for redemption.
Take note of the conditions for redemption of reward points or miles when you are using a travel rewards credit card, or else you might be disappointed.
Different travel brands and airlines assign different criteria for earning rewards depending onpeak days and seasons that can vary quite a lot.
This might land you up in a situation when you cannot use the reward point or miles at times when you need it most.
Fit for Frequent Travellers
A person who travels frequently would find travel rewards credit cards most suited.
Since they are often traveling and staying in hotels, they can take advantage of lean seasons when occasional travelers mostly keep away.
This provides an excellent opportunity of getting the most from the rewards because airlines too would be glad to please customers at times when business is otherwise dull.
Travel Rewards Cards Are Not Free
There is no reason to think that travel rewards credit cards are free even though the way credit card companies pitch for selling travel rewards credit cards might make it sound so.
After all, when nothing is free in this world why would credit card companies give travel rewards credit cards free?
Do not forget that you must pay an initial amount for getting the credit card even though along with it comes free bonus miles in some cases.
Compare the conditions for redemption of reward points or miles that should give some justification about whether the card is attractive to you or not.
Weigh it with the initial cost that you must pay, and it will become clear whether the rewards are truly as attractive as it appears.
To obtain a travel rewards credit card, you must have a decent credit score of 700, and above and this you must bear in mind when applying for the credit card.
Marina Thomas is a marketing and communication expert. She also serves as a content developer with many years of experience. She helps clients in long-term wealth plans. She has previously covered an extensive range of topics in her posts, including Money Saving, Budgeting, Cryptocurrency, Business debt consolidation, Business, and Start-ups.