Travel credit cards offer great ways to earn airline miles, hotel points and other travel-related rewards – many even come co-branded with airlines or hotel chains!
Consider your spending habits and travel goals when determining if a travel card is suitable for you. Explore bonus categories as well as additional perks such as insurance policies to see what suits you best.
How to Use a Travel Credit Card at Home
Travel credit cards provide rewards that can be redeemed towards travel expenses such as airfare or hotel stays, such as points or miles redeemable through a card issuer’s travel booking portal or as statement credits on your account.
Depending on the card you use, miles or points earned can also be redeemed for hotel or airline status upgrades and travel-related perks such as trip delay and cancellation coverage. Certain cards also feature bonus categories like gas and dining that help accelerate this process.
As with all credit cards, it is vitally important that your travel credit card balance be paid off each month in full to avoid finance charges and maximize rewards. Most travel credit cards require excellent or good credit scores in order to approve them so it would be wise to run a credit check prior to applying.
How to Get a Travel Credit Card
Travel credit cards can help you earn rewards that can be redeemed for discounted or free travel at your leisure. Most require good to excellent credit to qualify, so if your score falls within this range it would be wise to rebuild before applying for new cards that may negatively impact it.
Airlines and hotel co-branded credit cards allow cardholders to earn rewards that can be directly transferred into their loyalty programs for redemption on flights and rooms. Some card issuers also offer flexible point currencies like miles or points that can be redeemed through partnerships with various travel businesses.
Compare the features offered by each card, such as airport lounge access and TSA PreCheck/Global Entry application fee credits, to ensure it will meet your travel needs. In addition, carefully consider whether its annual fee justifies any potential rewards you might earn in return.
How to Keep Your Travel Credit Card Safe
While on vacation, paying credit card bills might not be top of mind. Unfortunately, failing to do so each month could incur finance charges that wipe away the rewards earned through purchases.
Before traveling, contact your credit card company and inform them where you will be going so they can monitor your account for any suspicious activities and notify you if necessary.
Many cards offer benefits such as lounge access and no foreign transaction fees that can make travel abroad much more enjoyable, saving both time and money. But it is wise to carry only one card at any one time when out and about, since having too many increases the risk of losing or having them stolen. Also keep receipts just in case a dispute comes up, while have an emergency plan ready should you need one.
How to Manage Your Travel Credit Card
The top travel credit cards offer many attractive benefits, from airline and hotel loyalty programs to dining, gas, and other rewards. All those perks can quickly add up, so it is crucial that you know when and how best to utilize them for maximum value.
Many cards offer online shopping portals where you can earn extra points and miles on top of those earned automatically by your card. This strategy, known as stacking rewards, provides an effective way to save money when booking travel arrangements like airfare, hotels or rental cars.
Nessa Feddis, Senior Vice President for Consumer Protection and Payment at American Bankers Association advises travelers to regularly check their balance when traveling in order to prevent overspending and extra fees while mitigating security risks. A quick check may also prevent missed payments that could hurt your credit score – be sure to notify your card issuer of your travel plans, she adds.
