Every year more and more people become involved in travel hacking by searching for any opportunity to reduce travel expenses. The tool most of them use is a travel credit card, offering a lot of nice benefits for all its holders. There will be no problems if there was only one option but now not every person can choose between different types of such cards. And the most difficult question is whether rewards cards are really better than cash backs.
Why travel rewards?
Now, most of the travel solutions are based on a rewards system, even those offering cash backs have several bonus features. This type of cards allows to collect bonuses from one purchase, store them, and use for another one. You can buy an airline ticket and use bonuses for booking a place in the hotel. The best travel rewards cards are listed on effectify.com where you can find all the necessary information from an annual fee to estimated bonuses and savings’ amounts.
Don’t think that using rewards systems you collect money only. There are also loyalty travel rewards providing you with additional perks like a flight in a business class with 50% discount or booking the higher level room for a price of an ordinary one. Acquiring rewards’ card you automatically become loyal to its issuers and get all the benefits from being their regular customer. The only drawback is that you can use these bonuses only for partnering companies.
Why cash backs?
Although cash back type doesn’t offer significant loyalty benefits, it is more practically useful. When you make purchases using this type of a travel credit card, you get particular cash amount returned to your account. Unlike rewards, which you can use only for organizations, partnering with card issuers, you can use cash backs for paying your bills and buying groceries in the closest shopping mall. You can also invest and save this cash so as to spend it later.
So, what is better for you?
The question whether to use cash back cards or travel rewards systems is very individual. Some people like to spend money and travel, getting first-class flight by the price of a second-class. Some people don’t want to get a better place but they would like to make a purchase and get cash instead of the opportunity to buy cheaper the next time they get such services.
You don’t need a lot of advisors to choose your kind of a card. It is up to you to decide whether to stay loyal to a particular number of firms having all benefits as a regular client, choosing liquidity at the first place or choosing cash back option including rewards which is also available nowadays.