“How to Make the Most of Your Travel Rewards Credit Card”

“`html

Understanding Merchant Category Codes

When a business wants to accept credit cards, it must set up a payment system with a credit card network. The business is then assigned a merchant category code (MCC) based on its services or products. Credit card issuers use these codes to determine which purchases qualify for bonus points or miles. For example, some cards offer three or five times the miles for travel purchases.

Each card issuer decides which MCCs it will accept as “travel.” This means a purchase might be considered travel by one issuer but not by another.

What Generally Counts as a Travel Purchase

Most travel rewards credit cards include the following as eligible travel purchases:

• Airline reservations
• Hotel reservations
• Passenger train tickets
• Bus tickets
• Car rentals from approved companies
• Limousine services
• Cruise line reservations

However, if you buy through a third party or use points through your credit card portal, these purchases may not count as travel. Always check the fine print of your credit card agreement or contact your card issuer to confirm.

What Generally Does Not Count as a Travel Purchase

Some travel-related expenses typically do not qualify for travel rewards, including:

• Gasoline
• In-flight purchases
• Duty-free purchases at the airport
• Shore excursions, sightseeing tours, and casino purchases during a cruise or train trip
• Truck, RV, and boat rentals
• Travel insurance (though some cards include travel insurance if you use the card to make a reservation)

How to Maximize Travel Rewards

To get the most out of your travel rewards credit card, consider the following tips:

• Plan ahead and choose a card that aligns with your preferred airline or hotel.
• Look for cards offering flexible rewards and introductory bonuses.
• Make reservations through the credit card rewards portal to maximize points or miles.
• Use your credit card for all purchases and pay it off in full to earn points or miles on every transaction.
• Sign up for airline miles or hotel programs, as these can be beneficial later.

The Bottom Line

Choosing the right travel rewards card can lead to significant savings, but understanding the fine print is crucial. Credit card issuers base their decisions on the merchant classification code of the business you purchased from. Using the right card for the right category can help you accumulate points or miles more quickly.

If you’re looking for the perfect travel rewards card, consider the type of travel you plan to do, introductory bonuses, and whether you’re willing to pay a fee.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions!

“`