The travel rewards programs launched by various banks and credit cards are becoming more popular with each passing year. It’s no surprise because these rewards programs help you cut down expenses when you travel. If you carefully research the details of several card offers, you could end up with significant savings at the end of your travels.
To learn more information about the ways you can save money on trips, go to effectify, a special site devoted to evaluating rewards cards with the best cash back returns.
Why are Travel Rewards Cards Better Abroad than Anything Else?
Of course, all types of money can be useful when you travel. So, why is the use of travel related cards considered the best way to spend your funds?
Here are 4 benefits:
1. The reward system.
This is the most attractive part of using a rewards card. You will earn miles or points from every purchase or with some cards, they only reward you on from purchases of certain popular categories of goods. Most rewards cards offer between 1 and 5 percent cash-back or rewards on expenditures. The rewards are returned to your card or account as points which can be spent on hotels or turned in as miles to buy airline tickets. Some cards allow you to receive your rewards as a credit against your balance and others offer to credit your Paypal account or send you a gift card to the store of your choice.
Some cards offer a flexible system in which the points can be converted to miles and vice versa. The collection of these perks may even become some kind of hobby, which helps you save your money and even earn free trips.
We do always warn people about using credit cards to earn rewards. If you carry a balance on your card and end up paying interest, you will wipe out all of your savings. So please be sure that you use a budgeting system to manage your expenses and can pay off the balance on your cards each month.
2. Sign-up bonuses
Travel reward credit card programs are also known due to their sign-up benefits. It means that each new cardholder will receive bonus points or rewards for opening his/her bank account. Most airline rewards cards offer the largest bonuses when you sign up – usually equivalent to the value of a domestic flight. Other cards make their bonuses contingent on spending a certain amount of money within the first 3 months.
Traveling with cash is a risky business. It can easily be stolen or lost and there is no way to recover it. Because of this risk, many travelers prefer to use credit cards when they travel.
4. The absence of foreign transaction fees.
Domestic debit or credit plastics are issued for use in your home country. If you’re traveling abroad, you can still use them, but you will most likely page a conversion fee for every transaction when spending in a different country. But there are several cards that are designed for international travel and don’t have such a fee.
By the way, a debit card may not even work in another country, like it was described in this article by Reuters (Don’t get stuck abroad with wrong credit card).
. So it’s always a good idea to check with your bank or credit card issuer before departing to see if you will be charged additional fees when using your credit or debit card abroad.
Research and Compare
Before you sign up for a travel rewards card, do your research. Compare annual fees, bonus restrictions, minimum purchases to receive your sign up bonuses. Some cards will offer buyer protection. This includes things like extended warranties and protection if an item you purchased with the card is lost or stolen. We’re assuming that you won’t be paying interest on a balance, but it’s always wise to check the interest rate also.
Earning rewards points when you travel can be a fun game to play – but only if you pay off your card each month. Happy Travels.
Get more travel tips for using reward card from our money-saving tips section