Travel Rewards credit cards are ideal choices for frequent travelers. The most popular of these cards offer flexible rewards and do not charge an annual fee. These desirable credit cards enable travelers to earn 1.5 points per dollar spent (unlimited) on every purchase. In addition, as long as the cardholder maintains an account, rewards do not expire, although some redemption choices may have time limits.
As a cardholder, you can redeem points for credit for any travel or restaurant expenditure. The most desirable Travel Rewards credit cards also have no fees for foreign transactions. This benefit, plus the lack of any annual fee, makes these cards an excellent choice for many active travelers today.
More Basic Benefits Offered by Travel Rewards Credit
The top-rated Travel Rewards credit cards offer 25,000 signup bonus points once you charge $1,000 or more in purchases during your initial 90 days as an account holder. This can equal $250 in credit toward future travel costs. In addition to the 1.5 points earned for every dollar that you spend, you may gain more points when booking travel with a designated travel center or agency.
Points earned are equal to one cent each if you redeem them for restaurant or travel expenses or more than one-half a cent each for cash. When you accrue specific milestone amounts of points, you can often redeem them for gift cards as well. The minimum amount of points to qualify for redemption is typically 2,500 points for travel or cash.
The interest rate is usually 0.0 percent introductory APR for up to 15 billing cycles for purchases. After that, the subsequent APR is 13.99 to 23.99 percent (variable APR).
Extra Advantages of Carrying a Top-Rated Travel Rewards Credit Card
More enticing advantages of owning a Travel Rewards credit card with a top rating include the following:
Flexible Rewards Options
The best Travel Rewards credit cards have no restriction on the airlines or hotels that you book when traveling. In general, rewards points accrue regardless of the travel arrangement that you choose. These credit card plans let you use your points for hotel accommodations, airfare, car rentals, cruises, and campground bookings. You can even use rewards points for visiting art galleries, aquariums, amusement parks, circuses, or zoos.
Your points can also be used for credit to cover meals in restaurants. Although your points do not expire, some cards do have a time limit within which you must use them for travel and dining expenses. This time limit for redeeming accrued points may be 12 months or less.
User-Friendly Travel Features
Both Visa and Mastercard are widely accepted and used around the globe. An added benefit of a Visa or Mastercard that offers a Travel Rewards program is that you will not be charged any foreign transaction fees with traveling internationally. Without this valuable benefit, you may be charged a one to three percent fee on every foreign transaction.
Opportunities to Upgrade Your Rewards
In contrast to many flat-rate credit cards, ideal Travel Rewards cards provide the opportunity for you to upgrade and earn greater rewards. You may even earn three-point on every dollar spent. In addition, many of these card plans are also issued with the offer of upgrading to Preferred Rewards status. With this level of membership, you can earn rewards at even higher rates.
Advantages Offered by Preferred Rewards Programs
If your credit card issuing company offers a Preferred Rewards program, you may be eligible to earn bonus rewards. If you maintain a certain amount of money or credit in one or more accounts, you can earn bonuses equaling 25 percent or even more. For example, most credit card companies offer the following three account levels:
Gold Status
This account level requires combined balances equaling $20,000 to $49,999 and offers a rewards bonus of 25 percent. With this account, you earn 1.5 points per dollar spent. In addition, if your credit card company offers a travel program, you can accrue an average of 3 travel points per dollar spent.
Platinum Status
This account level has the requirement of combined balances equaling $50,000 to $99,999 and has a rewards bonus of 50 percent. You can earn 2.25 points per dollar spent. If your card issuing company offers a travel program, you can earn an average of 4.5 travel points per dollar spent.
Platinum Honors
This account requires combined balances equaling $100,000 or more and offers a rewards bonus of 75 percent. You can earn 2.625 points per dollar spent. In addition, if your credit card issuer offers a travel program, you can accrue an average of 5.25 travel points per dollar spent.