A credit card with travel rewards is a boon for any traveler. Get one if you do not have it. These rewards cards could stretch any travel budget. It will enable you to visit a greater number of destinations. Alternatively, vacations can be extended or accommodations can be upgraded. According to Bill Hardekopf, the CEO of LowCards.com, bonuses on all the rewards, especially the travel rewards cards, are excellent right now as the issuers of credit cards compete for a slice of the market.
Hardekopf opined that the business was always a competitive one. Credit card issuers are aware that they need to try harder to acquire a slice of the consumers' wallet when they spend regularly. Every card issuer wants you to use their credit card before cards issued by other companies. No wonder rewards now are many and the deals come considerably sweetened.
A website specializing in financial advice analyzed a total of nine popular credit cards known for their special travel rewards based on general spending patterns. They found that an average American may earn about $227 per year in the form of bonus travel. This amount is calculated post the inevitable annual fees. These rewards could be much more- to the tune of $901 to be an average- during the first year. The higher amount includes the sign-up bonus and the annual fee is waived off in the first year.
A majority of travel rewards cards provide more than an adequate sign-up bonus. Customers will enjoy extra points when they spend a certain amount of money- this can vary anywhere between $1,000 and $5,000- using that card for the initial three months. The average sign-up bonus for the popular cards comes to $450 in the form of rewards post-accounting for the first year fees payable once in a year.
Premium travel cards offer substantially higher bonuses which may be north of $500. In case you want to go on a trip, apply for a card a minimum of five months in advance. This will give you time to earn the sign-up bonus. These are the points which can be used to purchase free hotel nights or flight tickets free of cost.
Credit card users should be aware that rewards cards increase spending which may lead to way above the budget. A significant percentage- 34 percent- of those having a travel rewards card admit to spending more than necessary to earn points required for a trip.