When you are searching for a reward credit card, you will come across specialised cards that are aimed directly towards travellers. If travelling is something you do on a regular basis, whether it is for business or pleasure, a travel rewards card might be something that will benefit you.
The following are four things that you should look out for when getting a travel rewards credit card:
- Reward Points
It is a good idea to source a travel reward card that will give you bonus points for simply signing up with them. Some may even reward you with additional bonus points when you make your first purchase using your card. Others will continue to reward their customers with points and bonuses in order to keep them content and satisfied with their card. For example, the TD Visa travel rewards card system will give cardholders 3TD points per dollar spent on all purchases they make with their card. A deal like this one is the best way to rack up points quickly in order to be able to fly for free sooner than you would be able to normally.
- Interest Rates
A lot of credit cards with rewards charge higher interest rates in comparison to cards that do not offer rewards. However, this does not mean that you have to settle with a card that carries an expensive APR. If you do your research correctly, you will be able to find a reward credit card that has an affordable APR that will suit your budget. Be vigilant as some reward cards offer a low introductory APR to new customers at the beginning, and it then rises to the actual APR intended. Take advantage of the low APR when you sign up by all means, but be sure that you are aware of the regular APR that will be charged when the introductory rate period expires. If possible, you should always attempt to pay your full balance each month as this will totally eliminate the interest rate charge from your bill.
- Maintenance Cost
You have to be conscious of how much it will cost you to maintain your travel reward credit card. Some cards come attached with very high annual fees that sometimes can be overlooked. Paying for the use of the card needs to be worth it and you need to be using it on a regular basis to justify paying the annual fees that come attached with it. Apart from annual fees, you have to contemplate all the other charges that you may be faced with, some of which are:
Over the limit fee
Late penalty fee
Currency conversion rate
Balance transfer fee
Cash advance fee
Ultimately speaking, you do not want to have to be spending massive amounts of money in order to obtain the rewards. There are many great offers out there regarding a travel reward card. You just have to do your research and explore your different options. Know exactly what you are getting yourself into and if used correctly, your travel reward credit card will prove to be a great asset to have and it will help you get the most out of travelling.
