3 Lies You've Been Told About Travel Rewards Credit Cards

Image source: Getty Images

If you're someone who enjoys a good vacation and likes to take one pretty often, then you may be inspired to apply for a travel rewards credit card . The nice thing about these cards is that they commonly offer built-in perks that can help you save money on travel expenses.

For example, a good number of travel cards offer free checked bags on domestic flights -- something you'd normally have to pay for. And many offer discounts on in-flight purchases as well.

But some of what you may have heard about travel rewards credit cards may be exaggerated. Here are a few lies you shouldn't believe.

1. They make it possible to travel for free

You might accumulate enough points or miles on a travel rewards credit card to cover the cost of a flight overseas (less taxes and fees -- you will always have to pay some amount of actual money to book an award flight, even if it's only a few dollars). But don't be fooled into thinking you got that flight for free.

Any points or miles you accumulate on your card are awarded to you after you spend money on that card. That's how the system works. And the more you spend, the more free travel you might get -- but also, the more debt you might end up with.

If you're going to use one of these cards, take care to pay it off in full each month. Otherwise, the interest you accumulate could easily negate your rewards.

2. The annual fees are always worth paying

Travel rewards credit cards commonly charge an annual fee. And you may have heard that those fees are worth paying.

Well, that can be true. But it's not always true. You'll need to evaluate any card you have or are thinking of applying for to make sure you're likely to recoup your fee in the form of savings or perks.

For example, it may be that a card with a $95 annual fee gives you a $100 statement credit toward a hotel stay each year. So if you're certain you'll book at least one night at a hotel per year, then the card may be worth it. But be careful with cards that come with a higher fee, as a larger sum might be more difficult to recoup.

3. The perks are superior to any other credit card

The reason travel rewards credit cards commonly charge annual fees -- and sometimes large ones -- is that their benefits tend to be superior to other credit cards. But again, that's not always true.

Before you assume that the only way to score a nice amount of cash back on your purchases is to get a travel rewards card, explore other offers. And also, remember that while traveling is something you may do on occasion, you probably buy gas and groceries every week. So focusing on a card that rewards you for those purchases may be a better bet. And you might avoid an annual fee there, too.

There's absolutely nothing wrong with adding a travel rewards credit card to your wallet. But do your research first and be careful with how much you charge, rather than simply buying into some of the bad information that's out there.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy .