Travel Deal of the Day (August 6, 2010)

If you are using a frequent flyer mileage or hotel point earning credit card simply by habit, be sure to analyze whether you are maximizing your earnings on credit card purchases. There are currently many options for cash back credit cards. Some are very simple, and earn two percent cash back on all purchases (an example is currently available via Charles Schwab and Fidelity). For many people, earning two cents per dollar spent is far better than earning a frequent flyer point or a hotel reward point. Be sure to carefully analyze whether you would be better off using a cash back card - you can then use your cash to buy anything you want (from an airline ticket to clothes). With cash back, you have the power to choose what you want to do with that cash, and you are not tied to a frequent flyer or frequent stay program with copious and burdensome rules. Just food for thought if you have not recently analyed your credit card spending.