It can be daunting when choosing a credit card. With every credit card offering different rewards, its become overwhelming. We've put together some tips to consider when choosing the right rewards credit cards for you.
Don’t Expect Perfection
It is important that you know that different cards offer different benefits. You should, therefore, outline your goal so as to get the right card for yourself. Some cards such as Barclays and Halifax have various rewards programs transferable to various hotel and airlines. In the same vein, some other cards have different offers.
Types of Rewards
In talking about rewards, as a regular shopper or traveler, you will be thrilled to know what is in store for you. Travel rewards credit cards come with a lot of privileges that cannot be ignored. They are issued to meet the common needs of today’s global citizens.
Almost all major airlines have at least one co-branded airline credit card. This card earns you miles easily and also you can make purchases using your points. Though the best deal always comes from booking free flights with the airline, there are other ways to redeem your points. Either way, your airline credit card works for you.
Major hotel brands also have at least one co-branded credit card. You collect points by dining or checking in the hotel chain. The Hotel Credit Card provides you ways to redeem your points such as gift cards. However, the best deal comes from redeeming them for free nights.
What to consider to get the right card
1. Low Spending minimum
This works like a discount. To get some good deals from these cards, there is a spending floor which means you must spend beyond it to get great offers.
For example, you may choose a card with a minimum spending requirement of £2500 in a six months period. High-minimum spending yields considerable rewards. Your travel spends will give you a better bargain with a hotel credit card in your hand.
2. The card is accepted wherever you travel
When choosing your cards for travel, hotels, and airlines, you must ensure the card is acceptable in your scheduled destinations. It should not take you by surprise that some popular cards might not work in some distant places. However, you should get a travel credit card is VISA or Mastercard- authenticated.
3. The credit card has no foreign transaction fees
When you choose a travel rewards credit card, it should have zero transaction fees in foreign countries. This is advantageous since you will not be charged currency conversion fees for every transaction you make.
4. Travel perks
Some credit cards are more convenient as you travel. Some cards include various services such as travel delay and luggage insurance. Co-branded hotel and airline cards have more appealing perks which include travel credits, priority boarding, free nights, free checked luggage and the list continues. You make life easy this way.
5. Annual fees
Choose a card with low fees. For frequent travelers, it’s worth to pick a travel credit card with an annual fee. This is because their rewards are better, and points accumulate faster. With travel cards, you save a lot of money than the annual payable fees.
Bonuses to consider
1. Sign-up bonus
A right credit card for you should be backed by an incentive in sign-up bonuses. After surpassing the minimum spending requirement, this bonus is what jump-starts your journey with the card. You are a few meters away from earning a free hotel stay or free flight. Some bonuses may even feature either several free hotel stay-days or a number of free flights.
2. Additional spending bonus
A good range of credit cards offers points for dollars spent mostly at a ratio of 1:1. Even so, some cards offer more points when you purchase at given retailers. You may also be given additional points should the credit card be branded. For example, you will get 5,000 bonus Avios points with the British Airways Credit Card.
It is amazing that you can actually get rewarded for what is legitimately your work, business or educational pursuit. This is the essence of the right travel cards. As you journey around the world, you will not only fulfil your personal expectations, you will bag some rewards as well.