Many travel credit cards provide bonus points that can be redeemed for flights and hotels for free, yet their value may be offset by high interest rates and card fees.
Certain travel cards come co-branded with specific airlines or hotels and earn rewards faster than standard cards; others provide lucrative introduction bonuses worth thousands of dollars.
Benefits
Selecting a suitable travel credit card depends on personal goals, spending habits and travel preferences. Factors that need to be considered when selecting a card include its annual fee, benefits and rewards earning potential.
Many travel cards feature attractive welcome offers that may make the annual fee worthwhile, however this should never be your sole determining factor when selecting a card.
The best travel credit cards offer points or miles you can redeem for free flights, hotel stays and rental car rentals. In addition, many also provide additional perks and discounts, such as complimentary upgrades, airport lounge access, travel insurance coverage and airline fee credits.
Some travel credit cards are co-branded with specific airline or hotel brands, featuring their own travel portal where points or miles you have earned can be redeemed for flights, hotels and rental cars. Furthermore, certain card issuers also have transfer partners which can enhance the value of what you’ve earned.
Fees
Many travel credit cards require good to excellent credit to qualify, so this type of card might not be suitable if your financial history includes late payments. Furthermore, some travel cards charge annual fees ranging from $95-550; it is essential that when selecting a travel credit card that the value of its perks be considered when selecting one.
Travel credit cards typically offer rewards in the form of frequent flyer miles or hotel points that can be redeemed for free or discounted travel. Some cards even waive foreign transaction fees – saving hundreds in fees over time if you travel internationally regularly.
Some travel credit cards offer attractive sign-up bonuses that require spending a set amount within the first several months after opening an account. It is important to consider whether these offers justify adding debt, as well as whether there may be alternative cards with less stringent spending requirements and no annual fees that would offer better rewards.
Security
Make sure that your credit card will be widely accepted at your destination. In addition, use anti-theft wallets and bags to avoid card skimming; thieves use “skimmers” to access the magnetic stripe on cards to steal their magnetic stripes through electronic devices known as “skimmers.”
Make sure that you inform your credit card issuer of your travel plans in order to avoid them identifying your transaction as unusual due to changes in location, which could block it and create problems on your trip.
Make sure that when choosing either a co-branded or non-branded travel credit card, if applicable, that any spending requirement for any signup bonuses (if there are any) are met in order to activate any signup bonuses available. This will increase your rewards balance and make redeeming points for free travel easier as well as helping prepay some trip expenses from home like transportation and lodging costs, thus decreasing how often your card needs to be used during travel.
Requirements
Travel credit cards provide valuable rewards in the form of miles, points and other perks that can help save money on airfare, hotels and car rentals – plus some cards cover lost luggage expenses!
However, you should only consider using a travel credit card if you can repay the balance every month. As many travel cards require excellent credit scores to approve them and tend to carry high APRs, if your credit score falls short it would be wiser to focus on improving it first before considering new cards.
Consider both the minimum spending requirements and signup bonuses when selecting travel credit cards. Some cards require spending an excessive amount to unlock a welcome bonus – this can be difficult for some people; cash back credit cards could be better options in these instances.
