Americans love to be rewarded. So when a credit card issuer offers a rewards program to encourage their cardholders to use their cards more, many do just that without considering the outcome. If you’re one of the millions of people who use a reward credit card hoping to earn travel perks, do you know if a frequent flier program or a travel points reward program will bring you the biggest bang for your buck? Since the top prize for using one of these cards is a round-trip ticket requiring a large amount of card purchases, understanding the terms, conditions and rules will help you choose the one that best serves your needs. Here are tips help make the decision easier.

Know the Difference

1.Airline Frequent Flier Cards are offered by a particular airline. Frequent flier miles are awarded for every dollar you spend with the goal for most folks being a free-round-trip airline ticket. Bonus miles are awarded for airline travel on that specific airline charged to the account. For cardholders who are loyal to an airline, an added perk is the ability to use miles for upgrades.

2.Travel Rewards Cards are similar to airline cards except they are not affliated with a specific airline. The points you earn can be used for a variety of travel opportunities without being restricted to one airline. These cards are the better option for people who aren’t particularly loyal to a single airline.

Questions to Ask

1.Does the card offer double or triple miles for shopping at particular merchants?
2.Is there an annual fee?
3.Are there opportunities to earn double or triple bonus points?
4.Can the rewards be used for other travel perks, like hotel stays

One other consideration that many people may not think of is any additional costs of air travel. A new trend in the airline industry is to charge for checked bags. One checked bag can put you back a minimum of $25, an amount that can negate the benefits of using a reward card. There are some reward programs that provide an answer to this new fee – a free checked bag for their cardholders. It may be worth checking into.

Choosing the right card should be based on your personal spending and flying habits. People who mainly travel on one airline may reap the most by concentrating on a card affiliated with that airline. Travelers who shop around for the best deal and who are less loyal to a particular carrier will benefit more by using a travel rewards card instead of a frequent flier card. No matter which type of card you choose, your focus should be on the lowest fees and rates. Travel reward cards often charge annual fees of up to $200 and higher interest rates. These should be carefully considered, especially if you typically carry a balance. Also, keep in mind that travel reward cards often have stricter standards than other types of credit cards and you may be more difficult to get approval, if your credit score is too low. The ‘best’ card is the one that keeps more money in your wallet.

One card to consider that offers a low annual fee after the first year and has been voted the best travel reward card by several online travel sites is the Starwood Preferred Guest American Express card. Every ‘star point’ earned can be converted to one mile in thirty frequent flier programs. Transfer 20,000 points to the program and earn a bonus of 5,000 miles, plus, rewards can be used for free nights at Starwood hotels.

Compare a complete list of reward credit cards at ASAP Credit Card. Apply for credit card offers for numerous benefits including: 0% APR, low interest, cash back, travel miles and other rewards.