If you travel often and can gain substantial value from its rewards or perks, obtaining a travel credit card might make sense. Most cards offer sign-up bonuses which enable you to rack up points within the first several months by spending.
However, many travel cards charge an annual fee. When considering whether it’s worthwhile for you, take the following factors into consideration.
Annual fee
If you travel often, obtaining a premium travel credit card could make sense provided it offers enough rewards value and amenities to offset its annual fee. Be sure to use it enough each month in order to maximize its benefits, while making payments on time each month.
To decide whether a travel credit card is worth it, first estimate your annual spending and subtract its fees before comparing rewards and perks with what other cards provide.
The best travel credit cards offer multiple ways for their users to redeem rewards, including airline and hotel loyalty programs, 0% APR periods on purchases, as well as waived foreign transaction fees so you can save on international trips.
Rewards
Travel credit cards make sense for people who can utilize the points or miles earned to save on future travel costs, but as their value can vary between card programs it’s essential that you understand how much of an impact the rewards will have for you before determining if one is right.
Consider the annual fee on any travel credit card you are considering before making your decision. Unless you have an excellent credit score, high fees on these cards could make it hard to pay off your balance each month and thus damage your score over time. Therefore it is essential to carefully weigh rewards against annual fee costs; many of the best travel cards offer sizeable initial bonuses that could offset an annual fee for several years or offer other perks such as Global Entry application refunds or comprehensive travel protection plans.
Perks
Many travel credit cards provide benefits that can save money when traveling, such as airport lounge access discounts and TSA PreCheck benefits. The value provided from these amenities may offset an annual fee; plus, many of the best cards come with sizeable initial bonuses that cover those costs for several years.
But, it is also essential to consider your individual spending habits and which perks would most benefit you. Airport lounge access and free hotel nights may not make sense if you rarely fly or stay at hotels; cash back credit cards could offer greater savings for fuel costs and everyday purchases, plus faster rewards accumulation compared to general travel credit cards – making these cards suitable for frequent travelers or high spenders alike.
Foreign transaction fees
When making international purchases with your credit card or visiting overseas retailers, a foreign transaction fee may be charged by both your payment processor and bank that issued your card, often to cover currency conversion costs.
Fees can quickly add up during lengthy travel itineraries. A good travel credit card will waive these charges to save money during your journey.
The best travel cards offer rewards and benefits that exceed their annual fees, from sign-up bonuses and no foreign transaction fees rewards cards, to offering Global Entry application refunds and comprehensive travel protections – these credit cards can help save on airfare, hotels, restaurants and more! Find one by answering some simple questions through Experian CreditMatchTM; we will match you with personalized card picks tailored specifically to your needs!
