These days, there are many different types of credit cards for consumers to choose from. This includes a range of rewards based credit cards including those that offer travel rewards. These cards are ideal for those who like to or need to travel on a regular basis, as it can save them a small fortune. The cards work by enabling users to earn points or air miles when they make purchases using their plastic, and these can then be put towards various travel perks such as hotel rooms and flights amongst other things.
However, while these travel based credit cards can be incredibly useful for those who tend to travel a lot, the data from a recent study suggests that many people could be missing out. The study was carried out by NerdWallet and showed that many consumers were really missing out simply because they applied for their travel based rewards credit card at the wrong time.
Missing out on thousands of rewards points
According to the data from the NerdWallet research, cardholders are missing out on just over 15,000 rewards points on average, which equates to just under $180 in terms of monetary value. However, officials said that the reason behind this problem was because many people were failing to make their rewards credit card application when credit card companies were offering the best deals in terms of rewards. Experts said that there was a clear and noticeable discrepancy in relation to when consumers were applying for these travel rewards credit cards and when they should be applying in order to optimize on rewards.
Researchers also stated that failing to compare cards and deals was affecting rewards levels for consumers. One official said that the level of the rewards could vary widely from one card provider to another as could bonuses such as sign up bonuses and annual bonuses. By looking at the various deals and cards, consumers are more likely to be able to get the best travel rewards deals. However, they are also being warned to calculate the cost of missed points and rewards if they do decide to hold out for better deals.
It is also important for cardholders to bear in mind that the interest charged on an outstanding balance will outweigh the value of rewards earned. Therefore, these cards should ideally be used by those who are able to repay the balance in full each month thus avoiding interest charges while still earning rewards.