The idea of taking semi-last minute vacations to Europe and getting to stay for free, at amazing hotels, is enough to get anyone applying for a travel reward credit card. All joking aside, earning travel miles, points or rewards, are a fantastic way to get free flights and hotels, but they aren’t for everyone.
Interest Rate – Most travel reward credit cards have relatively high interest rates, so you have to be pretty good about paying off your balance each month, otherwise you’re throwing away your own money while you try to accumulate miles.
Annual fees – Most travel reward cards charge an annual fee of $89 to $450, which can really start to bite into your overall travel cost savings.
Miles expire – You have to be pretty good about using your reward miles before they expire. Nothing worse than building up a reserve of miles for a nice trip with your spouse, and then find that you waited a couple months too long and half of them have expired.
If you’re not great about paying off your full credit card balance each month, or don’t have a ton of flexibility in your schedule to take a solid vacation every year, then this type of card may not be for you.