Travel-related rewards are among the most popular type of credit card feature. This can include Airmiles earned with a specific airline, Cashback on travel purchases, or Rewards Points that can be redeemed for travel packages. According to bayzat, the average interest rate on credit cards with a rewards program is 35%, while the average rate for credit cards with no rewards is 26%. Moreover, the average annual fee for credit cards with Airmiles rewards is a hefty AED 375. Given the high cost of holding these types of credit cards, it is important to maximize your credit card rewards when planning your trips. We take a look at several strategies you can adopt to get the most out of your credit card rewards.
Find the Best Credit Card for You
Choosing the right card is the most important step. Thankfully, bayzat helps you compare hundreds of credit cards in the UAE so you can decide what the best option is for you. In addition to finding which rewards program will help you accumulate the most Airmiles or Rewards Points, comparing the extra perks on offer can make your decision easier. For example, some UAE banks offer lower foreign transaction fees or travel insurance for trips booked with your credit card.
Use Rewards Points Wisely
When planning to use Rewards Points to purchase a travel package, compare how much it would cost to book the same trip in Dirhams. On some occasions, it might be wiser to pay out of pocket and save your points for another time, especially if it is low season for travel.
Take Advantage of Free Loyalty Programs
Whether it is restaurant, hotel, car rental or airline loyalty programs, many of these come at no cost. This means you can earn multiple rewards for every Dirham spent!
Take Charge of the Group
Being the designated travel booker for a group of friends or colleagues may be a pain, but it can also help you earn rewards points very quickly. By doing this, the credit card rewards can be accumulated without actually spending all of that money.
Always Pay Off Your Balance
As we noted, the interest rates on credit cards with travel rewards tend to be quite high, so always remember to pay the balance of the card in full at the end of the month. Otherwise, any benefit you gain from saving money on travel is gone since you will end up paying it as interest.