Travel credit cards provide rewards that can be redeemed for free flights and hotel stays, among other perks. Selecting the ideal card will depend on your brand preference – from general travel cards to cards offering specific airline or hotel brand rewards.
There is an array of credit card offerings from no annual-fee cards to premium offerings with amenities like airport lounge access; here are some helpful hints to select the one best suited to your needs:
Consider Your Spending Patterns
Assessing whether the annual fee of a credit card is worth its rewards requires considering your usual spending patterns. In particular, consider the amounts spent on airfare, hotels and restaurants; your bank and credit card statements can provide invaluable assistance here.
The top travel cards offer high base reward rates that you can redeem for hotel stays and merchandise, in addition to offering special perks like priority boarding and waived checked bag fees. Their value also depends on what types of miles or points they earn that can later be redeemed against airline flights.
As a credit counselor, I’ve witnessed people waste more money in interest charges and fees by using multiple credit cards for travel rewards. A simpler solution could be having one card for all rewards while multiple cards might only make sense if you can adhere to paying off all debts at once every month.
Beware Foreign Transaction Fees
Credit cards with no foreign transaction fees can save money over debit cards that charge these fees, due to both direct transaction fees and dynamic currency conversion rates used by merchants to display prices both in your home currency and local currencies.
To avoid unnecessary fees, the best strategy is to pay in local currency whenever possible; however, due to factors like payment processing times and only certain merchants accepting certain currencies. One possible solution would be pairing a credit card without foreign transaction fees with a checking account such as Schwab that doesn’t charge ATM withdrawal fees without incurring additional surcharges; this combination can save 7% or more off travel expenses according to research by WalletHub and would make for an ideal combination for travelers wanting to enjoy international travel while still accruing rewards while earning surcharge surcharges while traveling abroad!
Take Advantage of Welcome Offers
Cards often offer additional perks that can add substantial value, such as waiving airline fees or offering complementary upgrades at hotels, annual statement credits, luggage waivers and purchase protection – these could help offset an annual fee – so always compare what each card offers before selecting one that fits with your travel habits.
If you want to maximize your reward earnings, look for cards with higher rewards rates in specific spending categories. Capital One Venture Rewards credit card provides a solid rewards rate and benefits for frequent travelers; newcomers to points and miles might find its generous welcome offer and easy redemption options useful. Chase Sapphire Preferred also offers flat rewards rates; alternatively you may choose one offering bonus cash back rates in grocery shopping and gas purchases.
