Travel credit cards provide travelers with numerous rewards and perks, such as airport lounge access. Unfortunately, however, their associated fees can quickly add up.
Before applying for a travel card, it’s essential to carefully consider your budget and credit score. Many travel cards offer generous initial spending bonuses which may require extensive spending in order to unlock.
They’re a great way to earn rewards
Travel credit cards offer numerous benefits that make them ideal tools for earning rewards, from elite status with loyalty programs to discounted ancillary travel fees and discounted ancillary fees. With proper usage and depending on travel patterns, these rewards could quickly outweigh annual fees.
Travel cards offer businesses several advantages over cash back cards, including higher yield and the opportunity to maximize rewards with airline and hotel loyalty programs. Furthermore, membership benefits such as lounge access and free checked bags may also be available to maximize business rewards.
Note, however, that travel cards require more oversight and expense review than non-travel cards; thus they may not be an optimal solution for small business owners already burdened by credit card debt or who don’t travel frequently enough to justify reward programs.
They’re a good way to build credit
Travel credit cards provide numerous advantages to frequent travelers. Benefits may include aspirational trip rewards, first-class tickets and hotel stays. Travel cards may even help improve your credit score if used responsibly and paid in full each month – however they may not be suitable if existing debt exists or credit utilization challenges persist.
Consider both the annual fee and benefits before applying for a travel credit card. Higher-priced cards usually provide more generous perks, including airport lounge access, annual statement credits for airline fees, complimentary loyalty program status upgrades and credit toward rideshare services.
However, many travel cards require good to excellent credit scores in order to be approved, so it’s wiser if you have poor credit to focus on improving it prior to applying for one of these cards. Doing this will prevent debt accumulation.
They’re a good way to avoid fees
Travel credit cards provide numerous advantages that can help you avoid fees, such as waiving foreign transaction fees and offering benefits such as complimentary meals and drinks during business trips. Some cards also provide credits towards Global Entry/TSA PreCheck applications or airport lounge access fees, with substantial initial bonuses offsetting annual fees.
Travel cards may provide tools for spend control and tracking, such as the ability to block merchant category codes (MCCs) unrelated to travel expenses – this can limit abuse, reduce fraud and make expense reviews simpler to manage.
Travel cards may not be appropriate for people with poor credit, as credit card companies typically have high requirements and multiple accounts can adversely impact your scores. Furthermore, it’s essential that payments are made on time and balances don’t exceed 30% of available credit.
They’re a good way to get perks
Travel credit cards can provide frequent travelers with many perks and rewards, from airline and hotel loyalty programs to priority boarding and free checked bags. Before applying, however, it’s important to think through how you intend to use the card and plan accordingly.
Dependent upon the card you select, meeting minimum spending requirements to earn the initial signup bonus may require meeting certain minimum expenditure requirements without incurring debt. When considering which card would suit your needs best, take note of its rewards rates and redemption options before making your choice.
Airline and hotel-branded credit cards typically provide users with premium benefits, including annual travel credits and elite status accelerators, waived baggage fees, companion passes and other perks – but maintaining these cards can be expensive if you aren’t careful.
