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The ins and outs of travel rewards credit cards

The ins and outs of travel rewards credit cards

December 14, 2016
travel rewards credit cards
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It’s no secret that people love credit cards, especially when they come with rewards. These types of cards turn shopping into a game. The more you shop, the more points you get. And the more points you get, the better the rewards. Travel rewards credit cards are some of the most popular rewards credit cards currently out there. People like to travel, and a travel rewards credit card can help them save hundreds, maybe even thousands of dollars.

There’s one thing, though. Just like any other type of credit cards, travel rewards credit cards aren’t for everyone. If you don’t travel that much, if you can’t afford to charge the amount required on the card to qualify for rewards, and if you can’t pay the balance each month, then it’s probably not for you. A travel rewards card is better suited who travel a lot, either for work or recreation, and who can afford it, of course.

The benefits can get you in trouble

In order to get to those rewards, you have to have points. And in order to get points, you need to charge a lot of money on your travel rewards card. If you can pay off the balance each month, everything will be fine. However, if you can’t, you’ll have to deal with high interest and fees that will only make things even worse when you carry a balance to the next month.

Travel rewards credit cards might not be what you expect

Many people believe that they can get to the rewards anytime they like. But this is not the case. Hotels and airlines can limit availability for people who want to cash in their rewards. While this type of cards can be perfect for people who travel frequently, if you plan to use it all year in order to get the points that you need for your family vacation, you might be surprised to find out that you can’t use them.

A credit card is only as good as the one who uses it

It’s up to you to decide if a travel rewards credit card is worth it or not. It comes with both pros and cons and, if you do your homework, there’s no reason to think that the card you get won’t be exactly what you expected.

Thomas Hookton

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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