TRAVEL CREDIT CARDS
Point reward credit cards offer its users numerous benefits. One such benefit is the bonus points earned by using travel credit cards, For example, travel lovers who have at one time or another used the BankAmericard Travel Rewards credit card, will notice that the providers offer 1.5 points on every dollar the traveler spends. The traveler also receives a signup bonus upon requesting for the card and being eligible to receive it. In addition, the credit provider also offers the traveler 20,000 online bonus points in the event the traveler spends over $1,000 in purchases during the first 90 days. Alternatively, the credit card provider can reward the traveler with a $200 statement credit card that will enable them to make additional purchases. Points earned during the use of the credit card can easily be redeemed as a statement credit where the user is able to purchase travel purchases such as flights, hotels and rental cars. In addition, a user with a Bank of America checking or savings account is given a 10% point bonus on their credit card (Elissa, 2014; Karp, 2017). Other credit cards such as Barclaycard Arrival World Mastercard and Capital One VentureOne Rewards Credit card also offer similar packages which when compared to standard rewards credit cards have an added advantage.
VERSUS POINT REWARD CREDIT CARDS
The point reward credit card can be openly compared to one of the best ranked travel credit cards according to WalletHub this year, the Barclaycard Arrival plus World Elite Mastercard. This travel credit card offers a 50,000 mile bonus which can be redeemed for $500 in travel expenses. These points are offered when the user spends $3,000 during the first three months after the user receives their card. In addition the user also earns the miles equivalent of 2% cash back on all purchases they make and a 5% rebate on all miles redeemed (WalletHub, 2017). When the two cards are compared, it is evident that the point credit card is better given that it offers more rewards in terms of bonus points to its user as compared to the travel credit card. The point reward credit card also offers a higher cash bonus to its users based on their purchases and thus encourages them to spend more. However, the travel credit card proves beneficial to customers who travel for long distances regularly since they will be able to enjoy the bonus points earned from spending in foreign countries located further from home. Regular travel to far off distances means added bonuses which is a plus to the user.
AND THE BEST OFFERS ARE…
Another additional advantage of point reward credit cards over travel credit cards is the bonus offered to individuals with particular bank accounts such as savings and checking accounts in the various specified banks. This gives an incentive for customers of these banks to apply for point reward credit cards in an effort to acquire such benefits. Despite travel cards having certain bonuses for specific hotels, restaurants and other travel destinations, most travelers might view this as restrictive since they may find a better alternative destination putting them at a disadvantage. A further comparison of both the point reward credit card and the travel credit card reveals that while the point reward credit card does not have an annual fee. However, for people travelling to other countries, additional costs above the standard charges may be incurred when the reward point credit card is used in these countries. Travel credit cards on the other hand may charge a small annual fee on their users but do not attract additional charges for users who purchase items or services with them overseas.
SO TO SUM UP….
In general, travel credit cards may prove more beneficial to customers who travel over long distances regularly and are therefore able to benefit from the bonuses that arise from spending money in different destinations far apart from each other. Point reward credit cards may be much more beneficial to customers who travel once in a while but do quite a substantial amount of purchases on goods and services.