Reward credit cards are ideal for frequent travelers who want to earn reward points for their purchases and use them exclusively for travel. On the other hand, if you do not travel regularly and want to use your rewards other than at hotels and for airline tickets, is a travel rewards credit card really the best option for you?
In fact, using a discounted credit card for the trip can get you more rewards. Plus, the discounts option gives you more control over how you spend these rewards. If you are unsure of a travel reward credit card or a discounted credit card, consider these four reasons for using a discount card for the trip.
No purchase limit
One of the drawbacks of premium-travel credit cards is that while welcome rewards are attractive, they are expensive in reality. Often, reward-travel credit cards require a minimum purchase amount during the first few months in order to be eligible for these rewards. For example, one of Canada’s largest travel reward credit cards, the BMO MasterCard World Elite, offers 35,000 welcome points, but you must spend $ 3,000 for the first three months.
Spending $ 3,000 on your credit card may not be an option for you, so you will not be eligible for this offer. In this case, a discounted credit card, such as BMO’s MasterCard Word Elite Remises, is a better choice for you. Thanks to this credit card, you benefit from 4% discounts on all your purchases during the first four months, with no maximum limit.
For your daily expenses
An important aspect to consider when choosing between a discount card or a travel rewards credit card is that each is optimal for certain types of expenses. While some reward cards offer interesting potential, if the points accumulation requirements do not coincide with your spending habits, the rewards will be disappointing.
Like many rewards credit cards, discounted credit cards take advantage of your daily expenses. Discounted credit cards allow you to earn a percentage of your expenses, depending on their respective categories. For example, the Scotia Momentum Visa Infinite offers 4% discounts on fuel and grocery purchases, 2% on bill payment and pharmacy, and 1% on everything else. Depending on your spending habits, this rebate program may allow you to earn more than a rewards credit card reward.
Insurance and exclusive offers
Like Reward Credit Cards, Rebate Credit Cards offer a variety of insurance products to protect you from unexpected events during your travel plans. Coverage usually includes medical emergencies, accidents, interruption or delay of travel, baggage loss or delay, and collision and damage insurance for rental vehicles.
In addition, purchases made with your credit card are covered by liability insurance, extended warranty and purchase insurance.
Finally, many discounted credit cards offer benefits that can turn your ordinary trip into an extraordinary experience. For example, the Scotia Momentum Visa Infinite Card gives you access to luxury hotels in the Luxury Hotel Collection, an exclusive list of the world’s finest hotels. You also have access to Visa Infinite Table Fun, a series of unique events held in restaurants and vineyards across the country.
Cash – Ultimate Flexibility
Finally, a discounted credit card gives you the ultimate flexibility, since the rewards are awarded to you in the form of cash. There are no purchase or reservation restrictions through the credit card website, and you can use your discounts as you see fit. Whether you use them for a hotel, or to buy a new swimsuit for your trip – the decision is yours!
For the average consumer, a discounted credit card can be used just as efficiently for the trip as a travel reward credit card. The only exception to this rule is inveterate globe-trotters. Reward credit cards are known to encourage shopping, such as hotel stays and flights rather than other types of purchases. So, if you spend thousands of dollars a year traveling, a travel rewards credit card could be good for you.