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If you’re a frequent traveler, you might want to consider getting a credit card that offers travel rewards. These cards are designed to offer points or miles for every dollar spent on travel-related expenses. However, not all purchases that you might consider “travel” will necessarily qualify for rewards. Understanding what is considered travel for credit cards is crucial if you want to maximize your rewards.
What counts as travel for credit card rewards?
Travel expenses that typically qualify for rewards include:
- Airline tickets
- Hotel stays
- Rental cars
- Cruise lines
- Travel agencies
- Trains
- Buses
- Taxis and rideshare services
- Toll fees and parking
- Travel-related subscriptions and memberships, such as airport lounge access or TSA PreCheck
Some credit cards may also consider other expenses related to travel, such as dining and entertainment, to qualify for rewards. It’s important to check with your credit card company to determine if these types of expenses count.
What doesn’t count as travel for credit card rewards?
Expenses that typically do not qualify for travel rewards include:
- Groceries
- Gym memberships
- Gas
- Utilities
- Clothing and other personal expenses
- Cash advances and balance transfers
Again, it’s important to check with your credit card company to determine which expenses qualify for rewards and which do not.
Why does it matter what counts as travel for credit card rewards?
Knowing what counts as travel for credit card rewards can help you maximize your rewards earning potential. If you frequently travel for work or pleasure, using a travel rewards credit card can help you earn points or miles that can be used to offset the cost of future trips. By understanding which expenses qualify for rewards, you can make sure you’re using your card for these purchases and not missing out on potential rewards.
What should you consider when choosing a travel rewards credit card?
When choosing a travel rewards credit card, it’s important to consider several factors:
- The rewards program: How many points or miles do you earn per dollar spent? How flexible are the rewards? Can they be redeemed for a variety of travel-related expenses?
- The annual fee: Many travel rewards credit cards come with an annual fee. Make sure that the rewards you earn outweigh the cost of the fee.
- The sign-up bonus: Some travel rewards credit cards offer a sign-up bonus when you first open the account. Make sure the bonus is worth it and that you can meet the spending requirements to earn it.
- The APR: Travel rewards credit cards often come with a higher interest rate than non-rewards cards. Make sure you can pay off your balance in full every month to avoid accruing interest charges.
Conclusion
Using a travel rewards credit card can be a great way to earn points or miles for future travel expenses. However, it’s important to understand what counts as travel for credit cards so that you can maximize your rewards. Make sure to choose a card that offers rewards for the types of expenses you typically have when traveling and consider the other factors mentioned above when making your choice.
FAQ
Q: Can I use my travel rewards for anything other than travel expenses?
A: It depends on the credit card company and the specific rewards program. Some programs may allow you to redeem your rewards for merchandise, gift cards, or cash back, but the redemption value may be lower than if you used it for travel.
Q: What if I’m not a frequent traveler?
A: If you don’t travel frequently, a travel rewards credit card may not be the best choice for you. Look for a credit card that offers rewards for the types of expenses you typically have, such as groceries or gas.
Q: Can I use my travel rewards to book travel for someone else?
A: It depends on the credit card company and the specific rewards program. Some programs may allow you to transfer your rewards to another person, while others may not.