Credit cards for travel in the US can be invaluable tools. Not only can they provide rewards on purchases made, they can also protect against fraudulent charges while providing added perks such as flight delay and lost baggage coverage.
Choose a travel card with rewards rates and benefits that fit with your spending habits, taking into account any additional benefits (like an annual fee) as well as costs ( like annual membership dues).
Points
Travel credit cards provide travelers with premium benefits that make them ideal for travel purchases, including increased earnings on hotel and rental car purchases, an attractive welcome bonus offer and access to an extensive rewards portal.
Before selecting a card, carefully consider your travel goals and desired means of redeeming points/miles. Some cards, like co-branded airline and hotel cards, only enable redemption through their specific loyalty programs; others allow transfer between various programs.
Some travel cards also provide additional perks, like airline fee credits or statement credits for certain spending categories. It is wise to monitor these benefits closely as they tend to have limited-term availability – failing which you may miss out on an invaluable promotion!
0% APR
Credit cards offering zero percent annual percentage rates (or “0% APRs”) can save money by deferring interest payments over a limited timeframe – typically 12-18 months and available both for balance transfers and new purchases; these offers require good to excellent credit though.
To take full advantage of 0% APR offers, be sure to pay off your balance before the promotional period has expired. Also consider your spending and travel goals and select a card which rewards purchases you make most frequently and has built-in protection and value-add features like free checked bags, priority boarding or Global Entry/TSA PreCheck credits. It can also be helpful to know your credit score as a way of building it up further.
Foreign-transaction fees
Foreign transaction fees are surcharges applied by credit cards when purchases made outside the U.S. This cost typically involves currency conversion fees and can add an extra 4% onto the cost of your purchase.
Avoiding such charges is easiest with a card that doesn’t impose them, such as travel rewards cards from Capital One or Discover that don’t charge this fee, or cash-back cards that break out these costs into separate line items on your statement to help make tracking what is being charged easier.
Foreign transaction fees have become less of a problem among top credit cards in recent years, but they’re still possible and could add up over time if not managed appropriately. To reduce these fees and stay within budget during a trip, use your debit card or convert cash directly at a bank before your trip begins.
Convenience
Credit card fees can add up quickly, so to maximize their use and ensure the return of annual fees through rewards earnings and other benefits.
Airlines and hotel credit cards typically feature distinct rules for earning and redeeming rewards, while general travel credit cards often reward spending with points or cash back. Cardholders can often book hotels and rental cars through their card issuer’s online travel portal; additionally they may transfer points into airline loyalty programs or use shopping portals on the card to gain even more points.
Some cards offer protection by not reporting card usage to consumer credit bureaus, which may help people concerned about identity theft. Other cards report card usage to credit bureaus and may negatively impact an individual’s score in the long run.
Value
Travel credit cards provide great value to those looking to maximize their rewards programs. One such example is the Chase Sapphire Preferred card, which features a generous sign-up bonus and flexible options for redeeming miles for flights or hotels without an annual fee – making this card ideal for anyone just getting started in travel rewards programs.
Prepaid cards like the Bluebird American Express(r) Prepaid Debit Card provide excellent value to travelers. Reloadable for free at Walmart money centers and over 30,000 Moneypass ATMs, it also features purchase protection and emergency assistance features that come in handy while traveling overseas. Carry an additional card as insurance against losing, demagnetizing or being eaten up by unruly machines.
