Travel credit cards are designed for people who regularly spend on airfare, hotels and other travel-related expenses. Most come equipped with bonus spending categories and increased rewards rates that enable cardholders to quickly build up points balances.
These cards often come equipped with additional benefits such as complimentary checked bags and priority boarding that help offset annual fees. To find the ideal travel credit card for you, compare its net rewards value minus fees to find your ideal credit card option.
1. Rewards
Travel credit cards often offer attractive rewards and welcome offers that can prove invaluable – particularly if your spending enables you to earn enough rewards to cover their annual fee and cover its rewards.
Many travel credit cards provide welcome bonuses of hundreds or even thousands of dollars in their first year, which can quickly offset annual fees. Furthermore, these cards may provide greater points per category or depending on if your preferred airline and hotel brands are included within its program.
Some travel credit cards allow you to transfer points and miles between partner programs, providing greater value in redemptions. Consider all available options before applying.
2. Perks
Travel credit cards provide many perks that make them worthwhile to carry in your wallet, such as free checked bags and anniversary night certificates from hotels or airlines, or general features like being able to transfer points and miles between programs.
Many card issuers offer redemption options that allow customers to reclaim rewards as statement credits, cash back or gift cards; the value of redemption depends on what type of redemption is chosen; typically travel purchases tend to provide greater returns on rewards than others.
However, these rewards tend to be less valuable than those earned with traditional airline and hotel cards.
3. Fees
Some travel credit cards charge high annual fees that could outweigh their rewards and benefits; this could dissuade some applicants from applying.
Airline and hotel travel cards require an excellent credit score to qualify, making them unattainable if your credit scores fall short of expectations. Furthermore, many premium cards feature minimum spending requirements or signup bonuses only available to those who meet those thresholds within the first several months after opening an account.
Some travel cards charge foreign transaction fees whenever your card is used outside of the US or shopping online with websites in foreign currencies. If you travel internationally often or shop frequently online, a credit card without foreign transaction fees would likely be a better choice.
4. Restrictions
Many travel credit cards are linked with airlines, hotels or car rental programs and offer cardholders rewards when booking travel of certain kinds. Furthermore, some issuers allow cardholders to use these rewards toward non-travel options like statement credits.
Based on how you use your credit card, it may be wise to restrict how many points or miles can be redeemed each year for travel purposes; otherwise you risk incurring annual fees and high interest rates that could make this option counter-productive.
Before applying for a travel credit card, make sure that you meet eligibility requirements. Chase has been known to turn away applicants who repeatedly apply or seek multiple personal and business cards within short intervals.
5. Convenience
Travel credit cards make it easy to amass rewards and enjoy value-added perks that may offset annual fees for frequent travelers.
General travel credit card issuers allow you to redeem points for airfare, hotel stays and car rentals; statement credits; gift cards or merchandise (the value varies based on program details and devaluations); statement credits may be applied for as statement credits; redemption values depend on program nuances and devaluations policies.
Some travel cards provide convenient features like free checked bags and priority boarding – features which can come in handy at airports that are overcrowded with limited airline space. Unfortunately, however, these benefits require excellent credit to qualify for; if this applies to you then a traditional cash-back credit card could be more suitable.
