Credit Tip Tuesday #70 Your Guide To Use Travel Reward Cards Without Falling In Debt

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Fully-fledged luxury trips, free first-class airline tickets, discounted five-star hotels, access to top airport lounges - ah, the perks of the best travel credit card. 

However, you can enjoy all these benefits only if you have a good credit score range in Canada. 

Moreover, it takes time, credit, and of course, money to transform your travel card into a ‘premium’ level. 

But, once you have achieved that status, there’s a long road of travel miles, mileage, and free bonuses.  

So, if your idea of relaxation is traveling without going broke, you might want to get your hands on a travel-friendly credit card even with your limited credit history.   

Here’s what you need to know: 

Travel Credit Cards - An Overview 

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If you’re a hodophile, you might travel a lot. However, unless you’re a born millionaire, the traveling cost can really take a toll on your living expenses.  

It’s important for a travel lover to know and choose the right travel credit card to ease some traveling burdens. 

“Credit cards with travel incentives earn you points, rewards, or miles for your transactions!” 

So, Are Travel Credit Cards Worth It? 

Travel points, rewards, bonuses, and miles are a form of currency that you can use to redeem several offers. 

The advantage is that you don’t have to apply for individual debit, cash, or cashback cards. Yes, you can earn points or travel rewards on your everyday purchases with your typical travel card. 

Bonus: Click to read a guide to know the best travel hacks to save money. 

Travel Credit Cards - How To Use?

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Earning travel points is more like a marathon where the key to longevity in the race is taking it slow.  

The noticeable thing here is to understand that you don’t want to spend endless money just to earn the rewards. But, of course, you can’t ignore the importance of travel points and mileage rewards.  

However, still, the route you should take is using your regular daily purchases.  

• There might be a spending limit for your card, after which you’re eligible to earn travel points. However, you don’t want to fall into debt just to enjoy freebies! 

• Credit companies offer luxury services to make money, so all travel credit cards usually come with high-interest rates. 

Forbes explains that you surely can ask for lower rates, but it really depends on your card type. 

The secret is to select a travel credit card with a rewards currency you can utilize, whether in the form of airline miles, residential loyalty points, or multi-use travel rewards points. 

Travel Credit Cards Vs. Other Cards - Differences 

Travel credit card isn’t the odd one out but the exclusive one for the explorers. Different credit cards provide various advantages. 

• Secured credit cards might help you build a bad credit score 
• Some cards might allow you to earn cashback rewards 

• Shopping cards might give you the opportunity to spend in certain dining categories to earn grocery points 

So similarly, a travel credit card can help you earn anything and everything related to traveling.  

• Traveling rewards include travel miles, points, bonuses, and other discounted offers. 

• They might give you access to high-end lounges, hotels, or restaurants. 

The main differences come in the form of ‘loyalty programs.’ You'll be rewarded with some points on every purchase with a travel card. Here are the basics of the most travel loyalty programs: 

• The majority of elite hotels and airlines provide loyalty programs to reward the client for stays and flights. 

• These loyalty programs are often free to join. 
• You can increase your benefits by providing your loyalty rewards number when making a reservation or booking a flight. 

However, the client's requirement to access these travel perks is usually a good credit score. So, if your credit falls in the bad range, you need to take measures to increase your credit score quickly! 

How To Start Your Travel Rewards Journey? 

Sure, you’re into traveling. Of course, you want to roam around the world for free. But where do you actually start? Or, how can you earn points to fulfill your traveling dream? 

Here’s what you need to do in the light of a video by a top travel expert: 

1. Define Your Traveling Goals! 

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You need to be clear about why you need the miles for! For instance: 

• You might simply want to upgrade your ticket for free to the business class for your mother 

• You want to use the miles for a top-notch trip to an exotic place 
• You need the points to deal with the gas and petrol costs for your road-trip 

And once you know what your goal is, it will be easy for you to choose the right travel credit card. 

2. Look For Free Flyer & Hotel Programs! 

As we explained earlier, people who frequently travel yet don’t apply for loyalty programs throw away their chance of a free trip. 

• Ben explains that these programs can help you get a number on your boarding pass, which can help you with miles or hotel bonuses. 
• He suggests not only you subscribe to such free programs but make your family a member too, as the more, the merrier. 

According to Business Insider, loyalty, hotel, and flyer programs can offer the following benefits:  

• Convenient Check-Ins: Spending a few minutes to join a loyalty program can save you time when booking a flight. It also prepares you to earn points toward other benefits. 
• Flight Freebies: Some airlines might allow you to upgrade your seating, while others offer you business meals. You might also be able to take an additional big suitcase with you because of your good mile points.

A free ticket, meals, snacks, beverage perks, or a free upgrade from economy to a higher class are typical awards.

3. Invest In The Right Credit! 

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 Of course, choosing the right credit card is highly important to enjoy all the travel perks. You can look for certain options and compare their benefits to find what can work for you. 

Here are some options: 

• If your credit score isn’t too good, you can apply for a secured credit to build credit and earn travel points simultaneously. 
• Look for a card that offers sign-up bonuses and travel rewards  
• Find a credit card that allows spending in specific categories to earn brownie travel points and miles 

Comparing the ins and outs of a credit card has never been this easier as you can just search online and see the things listed in the top SERPs. 

4. Benefit From Shopping Portals! 

Using online shopping portals to earn points and miles is one of our favourite tactics. 

The main reason is its convenience! 

It just takes a few seconds, and you can do it comfortably right from your home premises. Here’s how it works: 

• Rather than searching straight from a retailer's website, you'll go to an airline's shopping gateway. 

• Then you’ll be directed to the retailer's website. 
• Of course, you'll still get the same products, but you will also get a bonus because of the redirected airline shopping site. 

According to Liz Hund, online airline shopping portals allow consumers to earn bonus points, miles, and rewards by doing business with numerous retailers via the portal. 

For instance, the perfect time is to earn points when ordering your everyday basic supplies. But instead of direct purchasing, you’ll buy products through the airline portal.  

How To Redeem Travel Credit Points? 

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 There are typically easy, and complex redemption options when it comes to miles and points. Let’s discuss both briefly: 

• Flexible Travel Points 

Because you may use flexible travel points for statement credits, discounted offers, gift cards, shopping, or travel, they are easier to redeem.  

You can usually charge any travel transaction to your credit card and use your points to cover all or some of the amount. 

• Airline Miles & Hotel Points 

Airline miles and hotel points, on the other hand, are more difficult to use because they are subjected to certain loyalty program criteria. 

Award availability can be limited, especially during peak vacation periods and popular travel redemptions. 

Note: Pursuing airline miles or hotel points is usually only worthwhile if you have a general concept of how you'll spend them. 

Bottom Line 

If you’re a finance expert, using cash for basic purchasing feels like a crime.  

Why throw away the opportunity to earn points on every dollar you spend. Right? And, using a travel credit card will only help rocket your miles up! 

We have curated everything you need to know in this guide, so give it a read and take a few steps forward in your financial literacy journey!