Reward Card What are the Benefits?

Monica Kowollik August 15, 2012

Reward Card Benefits – What are The Advantages of Having a Reward Credit Card?

I travel and am on a plane at least two times a month. The credit cards I have, offer no rewards at all. I would like to get the reward card for the airline I travel on the most. I am a member of the frequent miles club, and I have been earning travel miles. As of this moment I have received a domestic airline ticket. The reason I am not that excited about this particular airline credit card is that the annual fee is $80.00. My question is a reward card worth paying a high annual fee?

Marty Scheur
Saint Louis, Missouri

Answer to your Reward Card Question

Looks like you are well on your way to earning reward points for free flights. The question I have is how many times do you use your credit card each month? To make this type of reward credit card effective to your bottom line is to use it for every possible purchase. You can set up automatic payments with your utility bills etc. to earn every possible point. You should charge only as much as you can afford to pay each month. Pay off the balance in full each month. If you accrue interest then you will be paying more than the $80.00 annual fee.

There are some added benefits with an airline credit reward card versus just being a member of the frequent miles program. Being a reward card member entitles you to special mile earning opportunities. Some airlines offer a dining club. Reward Card holders can earn bonus points for eating at certain restaurants. Some larger reward card programs offer online malls. Cardholders earn bonus miles when they make purchases on their airline credit card. Card members can earn from one to twenty bonus points for every purchase. Even if you don’t spend a lot every month, these other offers and deals can make the annual fee worth the price.

One type of credit card that can be a reward card for travel is a cash back credit card. You can use a cash back reward card to pay for travel expenses.

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Monica Kowollik

Director at CreditFast.com

Monica has covered credit card and personal finance news for over 15 years. From an early age, she developed an interest in financial literacy and saving money. Monica hopes to help others to improve their personal finances one article at a time.

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