How to Decide About Incentive Credit Cards

More and more people like you are discovering the benefits of credit card rewards. Just by charging your purchases for everything from clothing to meals to gasoline, you can use a low apr credit card or a travel reward credit card –– and eventually redeem the miles or points you earn for plane trips, luxury hotels, and much more.

Below is a list of Frequently Asked Questions –– and our Frequently Provided Answers about incentive travel reward credit cards, and credit card rewards.

Q. What are some of the perks or incentives?
A. With a low apr credit card that offers credit card rewards, you can usually receive one point for every dollar you spend with a travel reward credit card. Some of these cards also offer you the advantage of receiving a percentage of your purchase –– from 2% to 5% –– cash back at the end of the year.

So the more purchases you charge on your travel reward credit card, the more points you can potentially earn –– up to 100,000 miles a year. In fact, the sky’s the limit because you can redeem your points for airline seats, discounted resort stays, luxury vacations, and more.

In addition, if you shop around the Internet or look in your mailbox, you can often find amazing offers of 15,000 or 20,000 bonus miles that you’ll receive after you charge about $250 on your new low apr credit card with an airline or incentive travel company. You can also earn additional bonus miles after you’ve paid the annual fee for the second year.

Q. What are the benefits when you apply for a credit card with travel incentives?
A. Many airlines offer credit card rewards with truly fantastic member benefits. Some of the many benefits include:

• Earning 15,000 to 25,000 bonus miles after your first purchase with the card.
• Paying no annual fee for the first 12 months.
• Earning one airline mile for every $1 you spend on purchases - up to 100,000 miles per year.
• Having no blackout dates for award travel reward credit card trips on that airline or its connected carriers.
• Receiving miles that may never expire.
• Being able to redeem the miles with dozens of the world’s top airlines, major car rental companies and hundreds of luxury hotels around the world.
• Buying mileage awards at reduced levels.
• No pre-set spending limit.
• Using your card’s credit limit at millions of locations globally.
• Using your PIN to get cash advances at hundreds of thousands of ATMs.
  

Q. What to look for when you apply for a travel reward credit card?
A. Look for two basic features: points and rates.

• Apply for a credit card that gives you one point or mile per dollar spent. Look around for the one that will give you a sign-on bonus of 15,000 to 20,000 miles or more. Some cards even offer five points per dollar spent! And if you call the travel reward credit card company, try to negotiate your best deal.
• If you shop around for a low apr credit card, you can usually find one with a reasonable annual percentage rate –– less than 20% per year. Remember that though 20% sounds high, there’s no percentage charged if you pay off your balance each and every month. The APR is pro-rated, so you’re actually paying a percentage of it per month, not the whole 20% or more on your balance.

Q. What should you avoid in a low apr credit card?
A. You should always try to avoid high interest rates. Don’t jump at the first low apr credit card that you’re offered because many have “teaser” rates on the APR or on balance transfers that only last a few months, followed by a very high APR.

Secondly, you should avoid carrying a balance each month on your travel reward credit card. After all, you’ll be charged a finance charge on your balance, which can really add up if you carry a balance, month after month after month.