Travel Credit Cards and Rewards Programs

Description: Test your knowledge on Travel Credit Cards and Rewards Programs with these challenging questions.
Number of Questions: 14
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Which type of credit card typically offers the most generous rewards for travel purchases?

  1. Cashback credit card

  2. Balance transfer credit card

  3. Rewards credit card

  4. Student credit card


Correct Option: C
Explanation:

Rewards credit cards are specifically designed to offer rewards, such as points or miles, for every dollar spent on purchases, including travel-related expenses.

What is the primary benefit of using a travel credit card?

  1. Lower interest rates

  2. No annual fee

  3. Free travel insurance

  4. Earning rewards for travel purchases


Correct Option: D
Explanation:

Travel credit cards allow cardholders to accumulate points, miles, or other rewards for every dollar spent on travel-related purchases, such as flights, hotels, and rental cars.

Which of the following is NOT typically a type of reward offered by travel credit cards?

  1. Cashback

  2. Points

  3. Miles

  4. Free hotel stays


Correct Option: A
Explanation:

Cashback is not a common reward offered by travel credit cards. Instead, they typically offer rewards such as points, miles, or free travel experiences.

What is the most common way to redeem travel credit card rewards?

  1. Using points or miles to book flights

  2. Using points or miles to book hotels

  3. Using points or miles to purchase merchandise

  4. Using points or miles to pay for dining expenses


Correct Option: A
Explanation:

The most common way to redeem travel credit card rewards is to use points or miles to book flights. This allows cardholders to save money on airfare and travel more frequently.

Which of the following is NOT typically a feature of a travel credit card?

  1. No foreign transaction fees

  2. Free checked bags

  3. Priority boarding

  4. Extended warranty protection


Correct Option: D
Explanation:

Extended warranty protection is not typically a feature of travel credit cards. Instead, they commonly offer benefits such as no foreign transaction fees, free checked bags, and priority boarding.

What is the minimum credit score typically required to qualify for a travel credit card?

  1. 580

  2. 650

  3. 720

  4. 800


Correct Option: B
Explanation:

The minimum credit score typically required to qualify for a travel credit card is 650. However, some cards may have higher or lower requirements depending on the specific card and issuer.

Which of the following is NOT a common type of travel credit card fee?

  1. Annual fee

  2. Foreign transaction fee

  3. Balance transfer fee

  4. Cash advance fee


Correct Option: C
Explanation:

Balance transfer fees are not typically associated with travel credit cards. Instead, common fees include annual fees, foreign transaction fees, and cash advance fees.

What is the best way to maximize the rewards earned on a travel credit card?

  1. Use the card for all purchases, regardless of category

  2. Use the card only for travel-related purchases

  3. Pay off the card balance in full each month

  4. All of the above


Correct Option: D
Explanation:

To maximize the rewards earned on a travel credit card, cardholders should use the card for all purchases, regardless of category, use the card only for travel-related purchases, and pay off the card balance in full each month.

Which of the following is NOT a potential downside of using a travel credit card?

  1. High interest rates

  2. Annual fees

  3. Foreign transaction fees

  4. Flexibility in redeeming rewards


Correct Option: D
Explanation:

Flexibility in redeeming rewards is not a potential downside of using a travel credit card. Instead, common downsides include high interest rates, annual fees, and foreign transaction fees.

What is the most important factor to consider when choosing a travel credit card?

  1. The rewards offered

  2. The interest rate

  3. The annual fee

  4. The credit limit


Correct Option: A
Explanation:

The most important factor to consider when choosing a travel credit card is the rewards offered. Cardholders should choose a card that offers rewards that align with their travel goals and preferences.

Which of the following is NOT a common type of travel credit card reward?

  1. Free flights

  2. Free hotel stays

  3. Free car rentals

  4. Free airport lounge access


Correct Option: C
Explanation:

Free car rentals are not a common type of travel credit card reward. Instead, common rewards include free flights, free hotel stays, and free airport lounge access.

What is the best way to compare different travel credit cards?

  1. Read online reviews

  2. Talk to friends and family

  3. Use a credit card comparison website

  4. All of the above


Correct Option: D
Explanation:

The best way to compare different travel credit cards is to read online reviews, talk to friends and family, and use a credit card comparison website.

Which of the following is NOT a common type of travel credit card bonus?

  1. Sign-up bonus

  2. Welcome bonus

  3. Referral bonus

  4. Balance transfer bonus


Correct Option: D
Explanation:

Balance transfer bonuses are not a common type of travel credit card bonus. Instead, common bonuses include sign-up bonuses, welcome bonuses, and referral bonuses.

What is the best way to avoid paying interest on a travel credit card balance?

  1. Pay off the balance in full each month

  2. Make extra payments towards the balance

  3. Transfer the balance to a 0% APR credit card

  4. All of the above


Correct Option: D
Explanation:

The best way to avoid paying interest on a travel credit card balance is to pay off the balance in full each month, make extra payments towards the balance, and transfer the balance to a 0% APR credit card.

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