Fond of traveling? Always on the go? If you're the quintessential jet setter, then you definitely should go for this - travel reward credit cards. It's the brand-new, ultimate solution to the ultimate globetrotter who always needs to be on the go. But what really are travel reward credit cards and how 'beneficial' are they for the cardholder?
Getting to Know Your Travel Credit Card
Travel reward credit cards give airline mile rewards to cardholders for availing the card. The cardholder accumulates points depending on the dollar amount of his purchases with the credit card. Once the number of points has been reached, the cardholder is entitled to an airline travel or any such related reward. There are actually three categories or types of travel reward credit cards, the airline miles earning card, the travel point card, and the hybrid card, a combination of the first two types. Airline mile earning cards earn 1 mile for every dollar spent while a travel point card earns 1 point for every dollar spent. The points can then be redeemed at the credit card's travel agency. The hybrid card earns 1 point for each dollar spent and can be exchanged for airline miles or used as travel points.
The jet-setter or the frequent flyer should consider an airline mile card or a hybrid card. With an airline mile credit card or a hybrid card, one can avail of free trips in first class even faster. Cards like Aerogold Visa and Royal Bank British Airways Platinum Visa can convert those economy trips to first class. On the other hand, for those who are not frequent flyers, the ideal choice to go for is the travel point card, or even the hybrid card. While these cards may not give free trips in a year, it can, however, provide discounts on your travel needs. As they offer points for every dollar spent which are redeemable as cash equivalent discounts through the credit card company's travel agency or reward center. Most cards offer $50 off for every 5000 points redeemed. These discounts can come in handy when the times come for that much-awaited trip or vacation.
Depending on the type of card, the reward may also cover purchase of gas, auto rentals, hotel accommodations and even purchase in shops and boutiques.
They also provide cash advances when you're on the road. There's also travel insurance that would include worldwide emergencies like medical evacuation, lost luggage, and emergency expatriation.