Answering the question “are travel credit cards worthwhile” depends on how much value you get out of their rewards and perks, including points/miles earned and available transfer partners such as airline/hotel loyalty programs; cost-saving features like free checked bags/travel experience credits may also factor into this analysis.
Rewards
Travel credit cards provide rewards that can help offset travel expenses. By responsibly using and paying off the balance in full each month, these rewards can add up to significant savings on future trips.
Some travel cards are co-branded with specific airlines or hotels, providing more flexible redemption options, while others can serve as general travel cards that partner with multiple airlines and hotels.
When selecting the ideal credit card for you and your spending goals, cash back rewards cards could be worth your consideration. Just keep in mind to periodically reevaluate these reward cards to make sure they still suit your needs as taking on debt just to earn rewards can cost more in interest charges than paying in full each time.
Perks
Credit cards may seem like endless funds, but they should be treated as serious financial tools that could put you into debt if used improperly. Therefore, before applying for one it’s essential to compare their annual fees, reward rates and redemption flexibility before making your decision.
Discover a travel card that rewards your most common spending categories such as groceries, gas and streaming services; compare earning rates between similar cards to find which offers greater value.
The best travel cards also provide valuable perks, including free checked bags and access to airport lounges. In some cases, these travel cards may provide cost-cutting advantages like airline incidental fee waivers or hotel room upgrades, purchase protection, extended warranties or purchase protection policies as additional advantages.
Insurance
Credit card insurance is an increasingly popular amenity offered to help travelers cover travel costs. Banks or processors of credit cards may use it to differentiate their products and increase cardholder retention.
Coverage offered by credit cards will depend on which card is chosen; these could include travel and shopping protections like extended warranty protection on eligible purchases and return protection for qualifying items; cell phone insurance policies as well as 24/7 concierge services may also be included in their offerings.
Capital One Venture X Rewards Credit Card offers an impressive suite of travel insurance benefits, such as trip cancellation and interruption coverage, lost luggage reimbursement and primary car rental collision damage waivers – benefits which may help offset its high annual fee, depending on your travel needs. For more details on these coverages available to you please see your Guide to Benefits or cardholder agreement and ensure they complement existing policies that you have.
Annual fee
Credit cards with annual fees typically offer enhanced rewards earning structures and premium travel benefits such as trip cancellation and lost baggage coverage, no foreign transaction fees and zero foreign exchange transaction fees – these features could easily offset their annual fees in short order.
Mid-tier airline cards usually charge approximately $95 annually and offer benefits such as free checked bags, priority boarding, and elite status in hotel loyalty programs – features that may more than justify this annual cost, especially if you travel several times annually.
Before making a decision on an annual fee travel card, take time to consider your spending patterns and travel goals before making your selection. A card’s long-term value can make or break your travel expenses, according to ValuePenguin’s analysis of 84 credit card offers which included sign-up bonuses, earnings categories, perks and features – including how often each feature would be utilized based on amounts spent within each category as well as estimated usage frequency of each benefit.
