It's kind of weird & bizarre. But despite all the hype and verbal praise that credit card companies pay to customer loyalty. It just doesn't pay!

A couple of years ago, a major financial institution mailed a travel reward credit card application to me with the incentive of 10,000 flyer miles from a major airline. It was lucrative enough for me to accept the offer. However I already had 4 credit cards. This one soon fell into limbo. After almost a year of neglect, I finally decided to cancel the account to avoid the possibility of identity theft.

I dialed their 1800 number. After waiting several minutes, a customer service representative, probably located across the Pacific Ocean, answered my call with a slight accent. I told him about my decision to close the account. He politely listened and mentioned if I'd be willing to talk with an associate of his. I said fine. He put me on hold for a minute. And then another guy, this time with almost no accent came on the phone, and greeted me like to like a long lost relative. I always get suspicious when people are overly nice to me. But I decided to listen. He said that he understood my situation, and asked me if another 5000 points would change my mind. I was a bit surprised. He was rewarding me for being disloyal! I decided to play it cool, and mentioned that all of my other credit cards don't have any annual fee. He made me another offer, "Would you stay on if we waived that?" Sensing a bit of flexibility, I said that I could use more miles. Unfortunately, he didn't budge much further, and only gave a couple thousand more miles.

I accepted the offer, and left feeling kind of giddy. Already my head was plotting on what else I could get next time. About half a year later, I again called their customer service, and requested to cancel my card. Surprising they processed my request. I was feeling a bit down as the conversation came to a finsih. However at the last instance, the representative asked whether I have a business. I said, "Yes…" in a cautious tone. The rep then mentioned about a small business credit card reward program where they'd reward 25,000 miles for signing up. After failing to get it to 35K, I finally said, "let's do it."

Looking back at my experience, I earned about 500 miles through my normal "loyal" usage, and yet was rewarded 32,000 flyer miles for being disloyal. When the year is over, you can bet that I will cancel my card and get a new one. I'd probably only do it once a year to minimize the impact to my credit score. And I will always keep a couple of cards to demonstrate my credit history. But the lesson is clear. Credit card companies definitely do not reward loyalty!

Check out these links to get you started on the latest Travel Credit Cards from MBNA in UK.

If you are looking for a travel card you are making a very wise move. After all, there are a ton of benefits to be acquired. After all, a solid travel card that offers a multitude of deals. However, there is no bargain to get a high interest rate travel card. This is because whatever financial benefits the travel card offers will be undermined by an enormous interest rate. Really, does spending an extra $50 in order to save $5 sound like a bargain? It is most definitely not! That is why it is best to stick with a low interest rate travel card.

So, what would be considered a low interest rate card? Basically, anything that is hovering at the common average for annual percentage rates (APR’s) or below is a low interest rate. Currently, the average APR for someone with good credit is roughly between 8% and 11%. It is within these numerical percentages that the term “fair interest rate” exists.

Depending upon your own personal credit history, the rate a credit card company offers you may be higher. The offer may come with a 14% APR. This is not a bad APR, but you could do better. If you are offered an APR at 21% or higher, tell them to forget it! Such a high APR defies any financial logic. (You would never be able to pay it off and there are far better deals out there) When offered a ridiculous APR figure make a call to the credit card company. (Yes, there are always open for negotiations) Inform the company that unless you receive a lower APR you would not be interested in the card. If you credit history is a good one, odds are they will offer you a better deal. To do so would be smart business.

If there was one problem with earning benefits from a reward card, it is the approach. That is, the approach used to rack up rewards numbers is not deliberate. Without any clear strategy, making the most out of a travel rewards card proves limited. Now, this does not infer that some complex, “magical” process is required. It simply means one must apply a little logic to consumer habits.

If you want to get the most out of a travel reward card then you should only have one card. Some might assume this is self-defeating. After all, the more reward cards you own the more points you can accrue, correct? Not really. Spreading your points over three cards keeps them out of one account. Instead, they are defused over three accounts. That yields three cards with three small point balances. Obviously, one large balance is better than three small balances that are unusable. If you can not use the point balance then it is like not having a balance at all. This essentially renders the cards useless. If the cards have no value then what is the purpose of them? You might as well use a “non-rewards” card with lower interest rates instead.

Then there are other problems associated owning more than one card. The most common problem is the tendency for people to overspend. (Idle hands with too much credit always equal debt) Yes, even the most disciplined fiscal conservatives can en up in trouble with multiple credit cards. The goal of a travel rewards card is to save money. Any activity that undermines this goal is not the course of action to take. Remember, you want your cards to work for you and not the other way around. Follow this advice: limit you travel cards to one and many of these problems will be diverted.

Many people embrace the savings that a travel rewards card can provide. However, some also worry about running up their credit card balance. This is a legitimate concern particularly for those who use their rewards cards for every purchase. (They want to rack those points up quickly) So, here is a little strategy that will keep that balance from getting out of hand: pay your balance frequently through the month.

Some may consider the following approach archaic and cumbersome. But, if it works for you then it may be a wise option. When you receive a statement during the month you should make several photocopies. After you make a purchase on your travel rewards card, write a check for the exact amount of the purchase. Then, send it off in the mail that day. If you are not interested in doing this on a daily basis you could do it on a weekly basis. If you would prefer not to invest time writing checks or mailing out envelopes, the internet is an option.

That is, you can always log in to your card’s online account and make a quick payment. This is a quicker process and a better option. The key here is just to be consistent. Remember, the main goal here is to pay the bill ASAP. So, don’t wait until the billing statement comes to make a payment. This process will work wonders for keeping the amount you owe to a bare minimum.

Discipline and consistency is the key to making this strategy work. If you frequently use your card and then fall behind making payments, then you will find yourself in debt. Making frequent payments allows you to use your travel cards to your best advantage. This is the most strategic way to handle your finances. Clearly, employing such a strategy will be to your advantage.

While surfing the internet for info on travel rewards cards, you may have come across a website offering advice, tips, and recommendations. The design of these sites is fairly simple. They will provide a one paragraph description of a travel card. The description is often glowing and positive. It is not out of the norm for the site to refer to a particular card as the absolute best of the best. The site will then recommend you click on the card image and follow it to an application page.

Wait a minute. Upon closer inspection, it is obvious this review is repeated verbatim for every on the page. Hmmm. Does this all sound a little odd? Can every card be a top of the line card? Maybe or maybe not. However, it is doubtful that the person running the site has any experience with these cards. In reality, the site is an affiliate marketing site designed for earning commissions.

That is, the pictures of the travel rewards cards are affiliate advertisement banners. If a visitor to the site clicks on the ad and fills out an application, the publisher of the website receives a payment. This payment could be anywhere from $35 – $100. That is why there is a slew of mini “reviews” crammed into its small pages. Potential customers will probably not wander beyond the first page.

Let’s get something straight: there is absolutely nothing wrong with what the website publisher is doing. Promoting advertisements for travel cards is not wrong. However, presenting these ads as reviews is somewhat duplicit. That is why one needs to possess a critical eye when skimming such sites. You do want to apply for a solid card. Duplicit “reviews” might undermine this purpose. So, be wary of review sites you might come across.