mehwish asked:
If you want to use a reward credit card to get free airline tickets, you have a choice on choice of airline credit card travel reward credit card or cash back credit card. Dedicated airline credit credit card hefty annual fees and may not be, if you are not very frequent traveler, or does not spend enough of your credit card.
If you decide to get a no annual fee travel
reward or cash back credit card, how would you decide which is better? This article discusses how to go about making this decision.
Let us assume we now have one reward credit cards and a Cash Back credit cards to choose from. Reward credit card pays one point for every dollar spent on purchases. Cash Back credit card pays 1% discount. In fact, they both have the same payment formula of 1%. Let us assume both have no annual fee (very realistic), and both have the same April. Will there be any difference between the two credit cards? Should we be indifferent? How can we decide which is better?
How much is your typical vacation airline ticket cost?
The most important factor, which in this decision, in fact, the average cost of your ticket when you take your vacation. Why? Because most travel reward program (in fact, the majority of programs for frequent flyer) requires that you earn 25,000 miles or points to redeem it restricted economy ticket in the continental United States. You must purchase a ticket through the specific airline directly (in the case of a specific program for frequent flyer), or through a program of reward agent. If you have a cash back credit card, 25,000 points will be $ 250 in cash rebates (with 1% formula).
But we all know that the domestic economy ticket cost can vary anywhere from $ 99.00 to $ 350.00. If you are flying traffic, you can get a $ 99.00 ticket from low-cost discount carrier. If you fly from coast to coast, you are likely to have people over $ 300 per ticket. If you are using to get special deals from Expedia or priceline, you can get it cheaper.
Select the Cash Back credit card, if the ticket cost less than $ 250
Therefore, it is important to know your vacation habits. If you tend to go on your vacation? What is the average cost of the ticket you? If you tend to fly transport to nearby places for recreation, and your airline ticket cost about less than $ 250 (say for example $ 150), it is better to use cash rebates from Cash Back Credit Cards. This is because you only need to spend $ 15,000 on your credit card to get $ 150 cash rebate. Cost $ 15000 reward for credit card only earns you 15,000 points, not enough on most reward program to earn a free flight of the domestic economy.
Choose a travel credit card if your airline ticket cost more than $ 250
However, if you fly long distance (New York to LA, for example) and your airline ticket is usually worth more than $ 300, and then with a credit card reward even more sense. This is because if you use a credit card cash rebates, you must obtain more than $ 300 in cash rebates (ie spend more than $ 30000). However, due to the regular reward program credit card, you need to spend $ 25000 to earn your 25,000 points.
So, if you’re inclined to believe that the holiday requires a lengthy flights, which cost more than $ 250, the use of travel rewards card. If your vacation flights cost less than $ 250, use cash instead of credit repayment. Some reward program only require 22,000 points to redeem both internal flight. In this case, use $ 220 or 22,000 points as a guide in choosing between the trip in cash or by credit card back.
GRADY
