Important questions to ask yourself before getting a travel reward credit card.
If you fly an airline constantly, getting a travel reward credit card is a very good option for you. As interest rates tend to remain excessively high on such credit cards, you must not opt for them if you carry a balance on your cards. Taking a travel reward credit card in spite of carrying a balance will push you towards the usual trap for which you need to seek credit card debt help.
Moreover, the interest rates on travel reward credit cards have risen considerably in the past few years. Travelers who travel on a budget believe that getting a travel reward credit card is not an attractive option until you reside near an airport that is dominated by a single airline company. Therefore, before you get yourself a travel reward credit card, you must ask some simple questions that need to be considered.
Should I get a travel reward credit card?
The first question mentioned is not an insulting one. Rather an honest answer to this question is crucial before you start looking for a travel reward credit card. Most people in the U.S. are into the habit of misusing their credit cards. If you’re someone who is finding it difficult to pay off the balance during your pay period, you’ll perhaps be making the wrong choice by getting yourself a travel reward credit card. As the interest rates on such cards are outrageously high, inability to pay off the balance on time may lead you to serious financial trouble. Therefore, consider your needs before getting such a high interest card.
Can I afford to pay the annual membership fee?
Many travel reward credit card companies will lower the interest rate for a certain period of time and even cancel the membership fees just to lure consumers. You must be aware that such offers are just ‘offers’ that may change according to the wish of the company. You must always check what the fee will amount to at the beginning of the second year. Annual membership fees range from $50-$95. What you need to consider is how the membership fee compares with the value of the free travel that you’re supposed to receive annually. If you see that the fees exceed the benefits, you better stay away from such cards.
Is there a dominant airline in my airport?
It is always more important to get a credit card tied to a particular airline. In some markets, more than one airline dominates and in some areas, airliners face tough competition among themselves. If it is so, each airline controls a small piece of the market share. If you reside in a place where one airline controls the market, getting a credit card that will offer you frequent flier miles, can be valuable for you.
Which airline will facilitate a trip to my destination?
Before choosing a travel reward credit card, make sure you check all the terms and conditions. Most airline companies are providing free trips too early in order to lure the consumers. Thus, you need to check whether or not the airline will make the trip to your destination possible. If the airline does not fly to those particular places, make sure their partners take you to those destinations and honor your miles.
Since the interest rates on travel reward credit cards are excessively high, make sure you do not carry any unpaid balance. If you do, you may be charged a huge amount of penalty and late fees. Seeking credit card debt help also requires money. Therefore, to save your hard-earned money, ask yourself the above mentioned questions to make an informed decision.