Travel rewards and air miles credit cards : Credit Card Guide

Travel rewards and air miles credit cards

There are many different types of rewards based credit cards around these days, and this includes cash back cards, discount cards, loyalty point cards, and more. For those that enjoy travelling there are two types of rewards based cards that could prove very useful, and these are travel rewards credit cards and air miles credit cards. Although both offer rewards relating to travel services it is important that you base your choice on the type of travel and travel services that you use.

For those that tend to travel by air a lot, an air miles credit card may prove the most effective. With an air miles credit card you can earn miles for every pound that you spend on the card, and although the level of points earned per pound spent is low you can also add to your balance with bonus points and special offers. The number of points awarded can vary from one card provider to another. Once you have enough points you can redeem them against flights, although there are restrictions in place so you need to make sure that you read the small print.

If you enjoy travelling but do not tend to travel by air so much – for instance if you tend to travel within the UK – you will fare better with a travel rewards based credit card. This is different to an air miles card in that you receive points for each pound that you spend on the card, and these points can be redeemed against a range of travel services, such as hotel stays, car hire, ground transport, package holidays, and more.

As with the air miles card, the number of points that you earn per pound spent on the travel rewards credit card will be quite low, and again can vary from one provider to another. With both of these credit cards you should make sure that you compare a range of cards from a number of providers in order to find ones that offer a generous level of points or miles per pound spent, and even to find ones that offer bonus points or miles when you open your account or at specified intervals.

You should remember that, as with any rewards based credit card, you will not earn anything for cash transactions or withdrawals that are made on the card, and therefore you should try and limit your use of these cards to making purchases. You should also make sure that you repay the balance in full each month so that you avoid any interest charges, as paying interest will counteract any benefit that you receive from your points or air miles.

The best way to benefit from air miles and travel rewards credit cards is to use your card regularly, thus maximising on the rewards that you earn, repay the balance in full each month, thus avoiding any interest charges, and avoiding any cash transactions or withdrawals, thus avoiding costly fees and missed rewards.

Tom Smith
8th March 2008

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