Fly with Your Travel Credit Card

By Leni Parrish on October 25, 2009

If you love to travel either for business or vacation, then a travel credit card is the best credit card for you. This type of card enables you to avail of free airfares, a free meal, and hotel accommodation. All of these, of course, are of very minimal value unless you are a grand winner of their raffle draw.

As a consumer, you deserve to know some facts about a travel credit card. These types of cards can also be called air mile cards. How do they work? They work through point accumulation, just like any other credit card promotions. Only difference is that the points are convertible into free plane rides upon reaching the desired number of points and redeem them. Another difference is the number of points accumulated where they can be eligible for conversion. There are several ways on how to earn points. For some, you earn points for every $10 of purchase using your travel card.

For others, you earn points even with just a $5 purchase. This means that in order to accumulate more points, requires making more purchases using the card. The points accumulated are just one of the factors why people decide to use this card. However, remember, there are other factors which can influence the use of this credit card. While you want to earn for points, you should also look at the interest rates. If interest rates are high, it is best to think twice before splurging on an item. You will earn points, but you will suffer from interest charges making it difficult to pay back charges. It must always be placed in mind that for every perk a company gives, there is a corresponding payback. That is how business plays. If you are not a good player, you might end up in the losing end.

If the interest rate of a travel credit card is acceptable to you, you might want to know whether there is a balance transfer option. This will be beneficial if you have existing credit card accounts. Transferring your balance to this card, if the interest rate is relatively low, will practically enable you to save not only on your financial resources, but also on the time and effort you spend paying your other credit cards. Therefore, there will not be too many forms to fill out just to pay your obligations.

There are still minor things to look out for in a travel credit card. These things might be minor, but it can definitely be very useful. This includes point expiration date and availability of offered rewards.

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