How to Compare Travel Reward Credit Cards: part 2

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Travel reward credit cards offer a great way to knock the cost off of your next trip away or holiday abroad.

By using these cards to pay for all your everyday purchases and repaying the balance in full each month, you'll be quickly on your way to your first free travel reward.

There are a range of travel reward credit cards available to choose from, and this guide will aim to tell you what to look for and what to watch out for when choosing the best travel reward credit card for you.

What to look for...

- What rewards can you earn?
One of the most important factors to consider when choosing a travel reward credit card is what rewards you can actually earn points for.

Many travel reward credit cards will offer a good range of different rewards from a number of travel operators, airlines and companies.

It is however important to make sure that you are earning points or miles that can be redeemed for something you'll want to make use of.

- How many points or miles will your spending earn?
Different travel reward programs will offer varying numbers of points or miles per pound you spend on the card - and sometimes a travel reward scheme will offer more points per pound if you are willing to pay an annual fee.

To find out exactly how many points or miles your individual spending will earn on each travel reward credit card, check out our travel reward credit card comparison page where you can enter in your monthly spending and find out.

You will also be able to see how much those points or miles are really worth in pounds sterling.

- Can you earn additional or bonus points or miles?
Many travel reward credit cards will offer joining incentives such as bonus points or miles when you open the account or with your first card purchase.

If offered, these bonus points or miles can give a real kick-start to your travel reward earnings, and can sometimes even be enough for your first free reward!

What to watch out for...

- Interest charges and fees
Reward credit cards need to be used wisely to really make the most of their advertised money-saving features.

The interest charged on any credit card is more than enough to outweigh any money-saving benefits of the rewards given back to you for using the card.

To keep your travel rewards free, remember to always repay your credit card balance in full and on time each month.

- Annual fees
Some travel reward credit cards do carry an annual fee.

An annual fee is a fee charged yearly for holding the account. If a travel reward credit card charges an annual fee, this is an important cost factor to bear in mind when choosing the right card for you.

Don't forget!

- To be a diligent payer
The fundamental rule of any reward credit card is to be a diligent payer.

By repaying your credit card balance in full each month you won't be charged any interest on your purchases - keeping the rewards you earn free.

The interest charged on credit cards will always outweigh any of the money-saving benefits you may have gained from earning reward points or miles - so remember to budget your income and always clear your balance in full and on time each month.

- What you can earn points or miles on, and what you can't earn points or miles on
Travel reward credit cards allow you to earn points or miles every time you use the card to pay for purchases.

Purchases include buying goods or services from retailers and companies.

Remember that reward points or air miles are never awarded for using your credit card for transactions such as accessing or 'buying' cash or balance transfers. Neither will points or miles be awarded for charges such as fees or interest made by the card issuer.

Cash transactions include ATM machine withdrawals, as well as getting 'cash back', buying foreign currency or traveller's cheques and also gambling transactions.

- To redeem your points or miles!
It can be all too easy to fall into the trap of just wanting to earn a few more points or miles before you claim a reward.

But waiting until your points or miles add up to a nice hefty rounded figure can be less beneficial than you think.

The whole point of earning reward points or miles is to get free rewards - and you need to redeeming them to really enjoy the purpose of taking out a travel reward credit card.

Many travel reward programs will allow you claim a reward and pay part cash and part points - so you only need to wait until you have a few hundred points or miles before cashing them in and enjoying the money-saving benefits of your travel reward credit card.

It's important to remember that some travel reward schemes will have set 'expiration' dates on the points or miles you earn - so find out when they expire and remember to redeem them in good time.

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