Do you love to Travel? We are constantly searching for the top credit card programs in 2016 and there are few savings opportunities that pay off bigger than taking advantage of rewards, points and perks credit cards that you can use during and ahead of future vacation and holidays for 2016 and beyond!
You can have as many rewards travel cards as you want but you must use it in a responsible way if you don’t want it to have a negative impact on your credit score. The problem with having multiple rewards cards is that there are several cards you have to pay attention to make sure that you don’t max out and to always pay back by the due date. You must have a way of manage your cards so that you never leave any outstanding balance.
Besides, rewards cards have higher APR rate compared to ordinary credit card. It will be expensive to roll over your balance month to month. So, you must make sure to always clear the balance of your card every month in full to avoid paying the APR fee. If you are late in making the repayment, you may lose the rewards so make sure to always pay back the rewards by the due date.
There is no need to be attracted to the bonuses that rewards credit card offers because most of them have a spending threshold to meet. So, you won’t be able to benefit from the bonus unless you spend a lot of money and can reach the threshold. If you feel that you can meet the requirements of the rewards program, make sure you check the expiration date of the program.
Some rewards program have inactivity clause for example, you won’t be qualified to receive rewards if you don’t use the card within a period of 1 year. You must understand which categories of purchases qualify you for the bonus rewards and what categories o purchases are exempted. If you don’t fully understand the rewards program, you won’t be able to take advantage of it.
You should only choose the type of rewards card that you are suitable for the type of purchases you are going to make. For example, if you fly regularly, you should get an airline miles rewards card. If you often stay at hotel, you should get a hotel travel rewards card.
You will need to have a good credit score especially if you want to apply for more than one rewards credit card. If your credit score is neither good nor excellent, it is suggested that you keep your spending to 10% of the credit card balance to build up your credit rating.
It is best to stay within the limit of spending 30% of card balance to prevent your credit score from dropping due to having multiple cards. You must always keep track of the rewards points you have accumulated and not forget to redeem them. The credit card companies can change the policy of the program from time to time so you must always pay attention to it.