Travel Credit Cards: Payments and Purchases

If you are a person who enjoys travel and wishes you could cut expenses on a vacation, then travel credit cards will surely appeal to you. What travel credit cards offer are free travel “miles” that are based on your payments to the card. Now, you may wish to read that a little closer and look for the operative word. Unfortunately, many people assume that they receive reward miles from travel credit cards based on purchases and purchases alone. This is not accurate as reward miles are only credit to the amount of payments that are received. This seems fair as it would not be wise to provide 2,000 free miles to someone who made $2,000 in purchases and only made $300 in payments. If travel credit cards offered deals that lopsided in the customer’s favor, the credit card companies would end up going broke!

So, if one is looking to collect free vacation deals from their travel credit cards, it becomes critically important to make payments consistently. Of course, this brings about the problem surfaces when you only make a $100 or so dollars a month in credit purchases. Well, the answer to this problem is simple: use you travel credit cards instead of cash! For example, if you pay with cash or debit when you go grocery shopping, use your travel credit cards EXCLUSIVELY for these purchases. When you are given your receipt, place the receipt in a special file and DO NOT spend the cash that was originally intended for the groceries on something else. Then, when the monthly statement for the travel credit cards arrives make the full payment on those grocery bills and watch your reward tally increase significantly. While this may seem like a relatively simple idea it seems that way because it is! It is also a wildly effective method of getting the most rewards out of your travel credit cards and should be given serious consideration.