These days, it simply doesn’t pay to get credit cards that don’t provide some kind of rewards program since so many are offering added benefits in a bid to get your business. But there are two different kinds of rewards cards you can opt for; you can either get a credit card that comes with travel rewards (for airline tickets, hotels, and so on) or you can opt for a rewards card that is specific to an airline or hotel that happens to be linked to a credit card company. But what is the difference and why would you choose one over another? Here are a just a few pros and cons that you’ll want to consider before you decide.
Most people would probably be inclined to select a credit card first, not only because the main purpose of having a credit card is to purchase on credit, but also because the rewards programs tend to be more flexible. Although some card companies are partnered only with a limited number of airlines and hotel chains, many offer free reign when it comes to redeeming points, including all kinds of incentives for those that use them to rack up “miles”, or rewards points. You may be able to use them not only for travel, but also for a variety of goods, services, and even activities (which can usually be redeemed through some sort of online catalog), as well as cash back (applied to the balance on your card or returned to you via check). In addition, you shouldn’t have any trouble finding a card without annual fees.
Of course, there are also drawbacks to choosing this type of card over other options, mainly that you simply can’t expect the same level of rewards. Because you are choosing these cards mainly for their purchasing power, and the rewards are just an added bonus, you won’t see an incredible amount of points racking up for your purchases. Although you’ll have more options about how to use them, and you may even be able to get double points on targeted purchases, it will probably take you a lot longer to build up enough points to, say, cover the cost of a plane ticket.
Travel rewards programs that come with a credit card, on the other hand, have a different set of benefits and drawbacks. And of course, the major benefits are derived by those that use their rewards credit cards to pay for their many travels. Often you can get a ton of points just for signing up and you’ll earn double points (or more) each time you use the card to purchase travel for the airline that offers the card. Of course, the best airline miles credit cards will also offer you extra points when you stay at certain partner hotels. In this way you can seriously maximize the impact of every journey. So if you travel frequently and you prefer a certain airline and hotel brand, this may be the way to go. Often, you will also receive some sort of preferential treatment just for being a member of these programs, such as guaranteed bookings and free upgrades to better seats or rooms.
But don’t be hasty; there are a couple of catches. First, you will more than likely get stuck with some kind of annual fee for using this card. And you can more or less be assured that your points are only redeemable through the airline/hotel that fronts the card. Unfortunately, you may also face blackout dates for redeeming rewards during heavy travel periods. So if you travel quite a bit, the airline-centric card may still work out for you, but if you buy a lot more than you fly, a credit card that comes with rewards is probably more your speed.
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