How To Make Travel Credit Cards Work For You?
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Many issuers shifted their rewards structures in 2020 and 2021 to focus more on rewarding cardholders for everyday purchases like groceries and takeout. Like other rewards cards, travel credit cards allow you to earn rewards for certain types of purchases, usually in the form of points or miles.
You can redeem your travel rewards for things like flights, hotels or other travel purchases like car rentals or vacation packages. Some issuers also let you redeem travel rewards for statement credits and other non-travel-related options.
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Even in the pandemic, travel credit cards and their often lucrative rewards structures remain one of the most popular types of rewards cards. Becoming a savvy travel rewards cardholder can help offset the cost of travel purchases and enhance your overall travel experience. But first, you may wonder: How do travel credit cards work, and how can you earn and redeem rewards? In this guide, we’ll cover:
How to earn points and miles
You can earn travel points and miles for all purchases you make with your travel rewards card. While some rewards cards come with a flat rewards rate for all purchases, many cards include enhanced rewards for specific types of category purchases you make with your card.
How do travel points work?
With travel points, you earn a certain number of points for every dollar spent using your travel card. The amount of points you earn per dollar depends on the card and the purchase.
Co-branded vs. non-branded points cards
Many points cards are co-branded hotel credit cards, which involve a partnership between a credit card issuer and a particular hotel chain.
How do credit card miles work?
Airline credit cards (and some general-purpose travel cards) usually offer rewards in the form of miles. Much like points cards, a travel miles card earns miles for every dollar spent on eligible purchases.
Co-branded vs. non-branded miles cards
An example of a co-branded miles card is the Delta SkyMiles® Gold American Express Card, which earns 2X miles on restaurant, U.S. supermarket and Delta purchases and 1X miles on all other purchases.
How to redeem points and miles
The kind of travel card you have and its respective rewards program will determine how you can apply your rewards.
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