Travel credit cards can bring great value to your travel experience, especially those offering benefits such as discounted or complimentary airfare, hotel stays or other rewards. When applying for one, consider your spending habits and how you will redeem rewards in order to make an informed decision about which card best fits you.
Consider your tolerance for card fees such as foreign transaction charges when choosing your credit card provider.
Choosing a Card
Finding a travel credit card requires understanding your spending habits. Look for cards that reward the types of purchases you make most frequently as well as those offering bonuses, like ridesharing services.
Many travel cards offer rewards in the form of points or miles. Airline and hotel loyalty programs may offer higher reward rates than general travel cards.
Consider your desired method for redeeming points or miles as well. Certain cards allow you to convert them to statement credit, gift cards or merchandise; others let you transfer them at 1:1 ratio directly to partner airlines and hotels. Additionally, if traveling internationally is part of your plans, make sure your chosen card doesn’t charge foreign transaction fees as these costs may quickly add up and erode the value of rewards earned with that card.
Annual Fees
Many travel cards charge an annual fee, but this doesn’t need to be an obstacle. By selecting a card with attractive sign-up bonuses and rewards structures that fit with your spending patterns and perks that complement them – one with outsized value over time.
Travel credit cards often offer additional money-saving credits that go beyond rewards, such as free checked bag allowance, airport lounge access and seat selection priority – these benefits can easily offset any annual fees charged for using them.
Points can be used to redeemed for airfare, hotel stays and car rentals as well as cash back or gift cards. Many credit cards allow you to view the value of these redemption options prior to making any purchases.
Rewards
Credit card travel rewards provide benefits such as discounted or complimentary airfare, hotels and rental cars. They usually award points or miles for every dollar spent; though earning rates and bonus categories vary depending on which card you use.
Airlines sometimes partner with credit cards to offer special perks like priority boarding and in-flight discounts, with co-branded cards typically offering higher rewards earn rates than general travel cards.
General travel credit cards that don’t align with a specific hotel or airline program offer more freedom in how you redeem rewards. Many of these cards allow users to transfer rewards directly into partner loyalty programs while others let cardholders redeem points or miles via an issuer-specific online travel portal.
Travel Protections
Travel credit cards often come equipped with various benefits designed to cover unexpected expenses, including medical evacuation coverage, trip cancellation protection and lost luggage protection. However, these should not be seen as a replacement for purchasing an individual travel policy.
Additional card benefits that could prove invaluable include roadside dispatch assistance that connects you with local providers in case of breakdown or accident, as well as coverage to offset some of the cost if items stolen from your bags are recovered. You can learn more about your card offerings by reviewing its fine print or visiting personal finance or travel websites, which regularly review top travel cards with easy-to-understand benefits for their readers.
