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The title of this article really says it all; make sure you apply for a travel rewards credit card that gives you lots of options. Let me explain. There are numerous travel reward credit cards. More and more credit card companies our offering this type of reward incentive. However, some are more restrictive than others. At MyCreditCard.com, we certainly believe we offer the best travel reward credit cards available in our Travel Rewards section.. Many of these cards offer you a travel reward bonus on initial sign up (i.e. a free 10,000 point award on sign up). However, be sure they than offer you flexibility on using these travel reward points. Specifically, a good travel reward credit card should offer you the following options and flexibility:

1. You should be awarded at least 1 point for every dollar you spend;

2. The reward point you get should be able to be converted to an airline mile reward on more than one airline. In other words, if you have accumulated 25,000 points, you should be able to convert this to 25,000 airline miles on an airline of your choosing, (25,000 airline miles is the typical amount you will need for a free domestic, round trip ticket);

3. You should have the option of using the travel reward points towards other travel benefits besides airline miles, (i.e. car rental, hotel stays, option to convert the points dollar for dollar into cash should you wish to receive cash back rather than an actual travel reward);

4. The redemption should not have black out dates. In other words, you should be able to use the travel points you earned on the dates you wish, and not be restricted to only non peak, non holiday, non prime travel times. Otherwise, you are better off simply applying for a cash back reward credit card;

5. Be sure that if a travel reward credit card offers you an unusually high amount of reward points for every dollar you spend, (like 2 travel reward points for each dollar you spend), you are not being charged an unusually high interest rate or annual fee to pay for this reward;

6. Read the fine print carefully on the travel reward credit card application to make sure you fully understand the benefits you are receiving and the restrictions on usage;

7. Apply for two of the best travel reward credit cards and use them both to see which is truly easier to use when it comes to redeeming your points. Then use the better card going forward. Don’t cancel the other card you applied for because believe it or not, having more credit, and using less of it actually helps your credit score. See our article titled "Canceling Zero balance Credit Cards may Actually Hurt Your Credit Score";

8. Make sure the travel reward points don’t expire yearly if you don’t redeem. You should be able to accumulate reward points for as long as you desire, and use them when you are ready and not feel pressured to use or lose; and

9. Travel reward credit cards are for people who truly travel at least 5 or 6 times a year. Otherwise, simply apply for another type of reward credit card, because you won't get your money's worth on a travel reward credit card. However, if you follow the advice up, and the travel reward credit card doesn’t pigeon hole you into only using your reward points towards travel, then you're fine to apply for a travel reward credit card even if you don’t travel much.

Just be sure you read the fine print and make sure the travel rewards credit card you apply for gives you plenty of options & flexibility in using your hard earn points, even if you don’t want to use them for just travel.

Woody Alpern
CPA / Registered Investment Advisor