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Article:
How To Decide Between a Travel And Cash Back Credit Card (For Free Airline Tickets)? by: Nick Lian Travel or Cash Back Credit Cards? If you want to use a reward credit card for getting free airline tickets, you have a choice of choosing a dedicated airline credit card, a travel reward credit card or a cash back credit card. A dedicated airline credit credit card has hefty annual fees and may not be worth it if you are not a very frequent traveller or do not spend enough on your credit card. But assuming that you do take a couple of vacations here and there, is it better to choose a no annual fee travel credit card or a cash back credit card? This article examines the factors to consider if you decide not to get a dedicated airline credit card, but instead to choose between either a no annual fee reward or cash back credit card. Let is assume we now have one reward credit card and one cash back credit card to choose from. The reward credit card pays one point for every dollar you spend on purchases. The cash back credit card pays a 1% rebate. Essentially, they both have identical payout formula of 1%. Let us assume both have no annual fee (very realistic) and both have identical apr. Would there be any difference between the two credit cards? Should we be indifferent? How do we decide which is better? How much does your typical vacation airline ticket cost? The most important factor that in this decision is actually the average cost of your airline ticket when you take your vacation. Why? Because most travel reward program (in fact, most frequent flyer program) require that you earn '25
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