Given the cost of even cheap travel options, including cheap airplane tickets, discount hotel rooms and cheap vacation packages, many savvy travelers are signing up for new credit cards that offer lucrative travel awards.
Today, more miles are awarded for credit card spending than for flying.
The following are some factors to consider in deciding which travel credit card you want to sign up for:
Decide on your reward goal before selecting a travel credit card. American Airlines miles are most desirable if you want to fly to South America. If the goal is to fly to Europe or Asia, then United or US Airways miles are usually preferred, followed by American miles.
Delta miles are particularly attractive if traveling to Australia or French Polynesia.
If your goal is to take fly internationally in a premium cabin, then avoid proprietary bank rewards programs. Bank programs typically do not transfer into actual miles. Banks tend to value points at about one cent per point and then charge for airline tickets based on their retail value.
Your spending habits often will determine which card is best for you. Different cards offer bonuses for different categories of purchases, including airline tickets, hotel spending, gas, restaurants, and groceries. If you eat out regularly, then a card that awards double points on restaurant purchases may be ideal for you.
The following are some of the most valued travel credit cards:
Chase Sapphire Preferred Visa offers 1.25 cents per dollar spent towards travel. Its most desirable feature though is that points can be transferred one to one into several airline and hotel programs including British Airways, Hyatt, Korean Airlines, Marriott, Priority Club, Ritz Carlton and Amtrak.
This card earns double points on all travel and restaurant purchases. Points can be transferred into anyone elses frequent flier account. No foreign transaction fees (typically 3 percent) are charged. There is a 40,000 sign up bonus after spending $3,000 within the first three months of signing up for the card.
Starwood Preferred Guest American Express is an ideal credit card for frequent guests of Sheraton, St. Regis, W Hotels, Westin, and associated brands. Points can be redeemed for free hotel stays or transferred to miles on over 24 airlines. The transfer of 20,000 points into miles generates 5,000 bonus miles, meaning each dollar spent generates 1.25 miles.
American Express Premier Rewards Gold card earns Membership Rewards points which can be transferred to a variety of frequent flier programs. Users earn triple points on for purchases of airline tickets and double points for gas and groceries. Airline mile transfers are typically the most financially attractive use of Amex points.
www.cheapfares.com