Are credit cards that earn miles the best way to go or could those reward miles actually cost you more than you bargained for?

In our latest Money Matters segment, Jon Hanai from HawaiiUSA Federal Credit Union shared the pros, cons, and what you need to know.

Some special promotions offer attractive incentives such as double miles for purchases, but Hanai cautions that “those benefits do have several drawbacks if you look just beyond the surface. Due to their rewards structure, mileage cards will have higher interest rates than similar non-rewards credit cards.”

Other potential pitfalls that he points out are the annual fee, devalued frequent flyer programs that don’t give you as much bang for your buck, extended travel blackout periods, and commitment to use award miles on a single airline.

HawaiiUSA Federal Credit Union offers a Rewards Credit Card that can be redeemed for other items such as gift cards and electronics or even cash in the form of statement credits.

The Rewards Credit Card’s points can also be used to earn travel miles for the best of both worlds.