What are the differences between airline reward/frequent flier and travel reward credit cards?
The three main differences between these rewards credit cards are: interest rates, annual fees, and bonus mile offers. In general, travel rewards credit cards offer lower interest rates and charge no or relatively small annual fees. However, travel credit cards usually do not offer bonus frequent flyer miles.
Which is better: a low interest rate (less than 10%) and no annual fee or a higher interest rate (13% and up) and 10,000 bonus miles?
The answer to this question depends on whether or not you carry a balance from month to month. If you choose to carry a balance, than a lower interest rate will ultimately save you the most money. However, if you pay your bill in full each month and fly often, then a frequent flier rewards card that offers bonus miles may provide greater savings.
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