How Do Travel Reward Credit Cards Work?

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Travel reward credit cards offer point or mile based reward schemes that are earned every time you use the card to pay for goods and services.

As a reward scheme, you simply collect the points or miles by using the card, and then when you’ve totted up enough you can redeem them for free travel rewards.

What travel rewards can be earned?

Travel reward credit cards allow you to earn points or miles on all your purchases.

The travel points or miles you earn can be redeemed for a range of travel rewards. The actual travel rewards on offer can include flights, hotel accommodation, package holidays, and other travel related services.

How do I earn travel rewards?

- Earning points or miles per pound spent
A travel reward credit card will award you with travel points or air miles when you use the card to pay for goods or services.

Most travel reward credit cards will offer a set number of points or miles per pound you spend - so the more you spend, the more points or miles you will earn.

Travel reward points or air miles are only earned on purchases paid for with the travel reward credit card. This includes buying goods or services from retailers and companies.

- Racking up additional points or miles
Many travel reward credit cards partnered with specific travel companies or airlines will offer additional reward points or miles when you use the card to pay for travel with the advertised company or airline.

For example, pay for a flight with British Airways with a British Airways Premium Plus credit card and you will earn double air miles.

Some travel reward credit cards offer introductory bonuses, allowing you to double or even triple the points you earn during an introductory period when you first open the card account.

- Bonus points or miles
Many travel reward credit cards will also offer bonus points or miles when you first take out the card.

Often awarded with your first card purchase, bonus points or miles can sometimes even be enough for your first free reward!

How can I maximise my reward earnings?

- How many points or miles will my individual spending earn me?
Knowing exactly how many points or miles your individual spending will earn you can be a good way to compare different travel reward credit cards and find out which ones offer the most rewards on your spending.

Simply enter your monthly credit card spend into our travel reward credit card comparison page and we will calculate how many points or miles you will earn for each travel reward credit card.

- How can I increase my credit card’s earning potential?
The faster you are able to accumulate travel points or air miles the quicker you will be able to claim free travel.

You can help to increase your earning potential by using your travel reward credit card to:

• Pay for travel with the participating airlines or travel companies.
• Tip: You may earn extra points or air miles when you use your credit card to pay for travel with the participating airlines and travel companies.
• Pay monthly bills and direct debits.
• Pay for your everyday purchases, including food shopping and petrol.
• Pay for larger items, including holidays, home improvements or a new HiFi.
• Set up additional cards for family members.

What is the real value of earning points or miles?

- Will you use the rewards?
Often overlooked are the value reward points or miles actually mean to you as an individual.

It's important to choose a travel reward credit card that offers reward you already use or know you will definitely use.

The value of 100 football reward points could be worth a lot less to someone who doesn't like football, than to someone who does.

The same can be said of travel reward credit cards, if you love to city break around Europe - air miles that can be used with an airline who flies to European destinations would be worth so much more than a handful of miles with an Australian airline.

- How much is 1 point or mile really actually worth?
All reward schemes vary, and as such each reward scheme's point or mile is often worth more or less in monetary value than a different scheme's points or miles.

Our travel reward credit card comparison page will not only let you know how many points or miles each travel reward credit card will earn you, but also how much that number of points or miles is really worth in pounds sterling - a handy comparison tool to say the least!

How do I redeem the points or miles I earn for rewards?

- Redeeming your points
Most travel reward credit cards will operate a website where you can book travel and redeem your points or miles for rewards.

- Paying part cash and part points
Most travel reward schemes will offer you the option of paying part cash and part points when claiming a reward.

This can be very useful if you want to make the most of your points without waiting a few years to collect enough for a holiday abroad.

Will I get any additional travel services or offers?

Airline specific travel reward credit cards often offer added perks for frequent flyer members.

As an air mile credit card holder you will automatically become a member of the airline’s frequent flyer mile program.

As a member you will often receive exclusive services and offers, such as priority check ins, VIP airport lounge access, free upgrades and special offers.

Compare travel reward credit cards