Hotel or travel points credit cards
Hotel and travel points credit cards can be a great way to save money when you take a trip if you use them properly. However there is a bit of a risk to using them. You have to think about why the credit card companies offer rewards cards; it is so that you will use your credit card more often. If you aren't careful you could find yourself in some real trouble with credit card debt. However as long as you are responsible about how you use your card they can be a great deal.
Most people are familiar with the concept of a hotel or travel points credit card, you collect points every time that you use your card which can be redeemed for points. There are several different options available here and you will need to decide which is best for you. There are some cards that are offered in conjunction with a major hotel chain and can only be redeemed there. There are other cards that can be redeemed at a variety of hotel chains as well as used for things like theme park admission or rental cars.
Most people would ask why would you take a card that can only be used for free nights or upgrades at a specific hotel when you could get a card that can be used for so many more things. The reason is that the cards that are offered by a specific hotel chain will usually offer a better deal. They will either give you more points when you use your card or they will require fewer points to claim your reward. In addition most hotel chains also have a frequent user reward system of their own, in many cases you can combine the two so that you can increase the reward points that you get.
Like all rewards cards there are a few risks with hotel or travel points credit cards that you need to be careful about. The biggest is that you will end up using your card far more than you should because you are trying to collect enough points to get your reward. You need to make sure that you use your credit card in a responsible way and trying to collect points is not generally it. You should be limiting your credit card usage to situations where it makes sense; otherwise you are going to find yourself in real financial trouble.
The other big issue that you have to be aware of is the possibility that you will agree to take a card that comes with a higher interest rate than you would otherwise have to pay. The interest rates on credit cards really adds up fast if you carry a balance each month. If you are paying more in interest than you need to it will almost certainly end up costing you more than the value of the rewards that you receive for using your card.