If you want to take advantage of benefits such as free flights and hotel stays, a credit card that earns rewards points is an ideal solution. Before applying, however, it’s essential that you understand both your travel habits and credit history in order to apply successfully.
Travel credit cards typically offer rewards in the form of points or miles; airline cards provide their specific currency within an airline loyalty program while general travel cards typically provide more flexible rewards redeemed for gift cards or statement credits.
They offer a secure way to pay for purchases
No matter the purpose of your travels, credit cards provide an easy way to make purchases. They’re safer than cash with strong fraud protection and provide a digital record of spending. Plus they may offer rewards not available from other forms of payment!
Some travel credit cards provide sign-up bonuses when spending on qualifying spending such as airline miles or hotel stays; others provide a flat rate of points across purchases; still others come equipped with complimentary benefits like free checked bags and purchase protection.
However, credit cards can be dangerous when used irresponsibly. They can tempt you into overspending and into debt cycles while often carrying higher interest rates than other forms of credit. You should always aim to pay your balance off in full each month in order to avoid incurring high interest charges and fees; in addition be mindful of additional costs such as annual fees, balance transfer fees or cash advance charges that might occur with your card use.
They offer a variety of perks
Credit cards provide many perks that are easy to overlook, such as cell phone protection. But these perks could save you money if your smartphone is damaged while traveling abroad and needs replacing; cards with this benefit could cover or offset some or all of its replacement cost.
Perks for credit cards vary by card and can include sign-up bonuses, free airline miles or hotel points, statement credits and extra travel insurance policies like airport lounge access or trip cancellation coverage. You can quickly compare multiple cards that interest you to find out their list of perks.
If you want to maximize your rewards, look for a card with an enticing introductory bonus – they could amount to thousands in airline or hotel points or hundreds in cash back! Compare points across programs so you know you’re getting maximum value from each dollar spent.
They don’t charge foreign transaction fees
When traveling abroad, it may be prudent to use a credit card that does not charge foreign transaction fees. These fees represent currency conversion markup that adds between 2% and 3% to the costs of purchases made abroad; they can even apply if purchasing items online from retailers located elsewhere. Luckily there are numerous top travel rewards cards which do not impose these charges; you can verify this fact either through checking their terms and conditions or calling customer service.
Fees typically amount to around 3 percent of each purchase and can quickly add up over an extended European vacation. To avoid them, seek a credit card that doesn’t charge them or use debit/prepaid cards that don’t incur them; most credit card companies publish their fee rates under “Pricing and Terms” or “Rates and Fees” sections of their terms; it is wise to check these fees beforehand in order to know exactly how much to expect when traveling abroad.
They have annual fees
Before signing up for a credit card with an annual fee, it is wise to carefully assess its benefits and rewards. Many cards waive annual fees in their first year to make them more appealing; additionally, certain issuers offer discounts or perks specifically targeted toward existing customers, providing more value at first use and lasting utility over time.
Credit cards with annual fees typically offer points or miles that can be redeemed for cash back, gift cards, travel expenses or airport lounge access. Some even provide elite status in airline loyalty programs! When considering credit cards with annual fees, make sure to consider all rewards and perks offered – both tangible and intangible – so that you can determine whether one suits your spending habits and lifestyle best.
