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Reward Cards for Travel
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Watch the slippery slope: Many cards offer introductory bonus (like double points) if a certain amount is charged to the card during the first few months. Why? Because the more debt you rack up, the more that you potentially pay back in interest. It makes sense to grab the extra points if you’re prepared to pay the balance (see above), but don’t sabotage yourself by racking up more debt than you’re prepared to pay back.
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Know the details: Does the card come with annual fees? Are there blackout dates or restrictions on travel? Do reward points have different value if you use them for travel, cash back or other returns? There are other details that can make one reward card better than another.
As is true in most financial situations, advantages lie in planning, discipline and patience. It makes sense to adopt a long view. If you’re living relatively debt free and are comfortable in your ability to stay on track, a reward card can present a big upside. If you’re not sure, however, the risks may outweigh the rewards. No one knows you better than you.
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