Travel credit cards provide rewards in the form of points or miles that can be redeemed for flights, hotels and other travel-related expenses. Unfortunately, these cards tend to be more costly than cash-back options with higher annual fees and annual charges.
How much value you derive from a travel card is determined by its costs, fees and rewards. A good card should provide high rewards on airfare, hotels and rental cars while offering other redemption opportunities and welcome offers that offer added value.
Airline-specific benefits
Airline credit cards may offer benefits like complimentary checked baggage and priority boarding, discounts on inflight purchases and earning miles to redeem for award tickets or upgraded hotel stays – though annual fees tend to be higher with airline-specific cards than general travel rewards cards.
As the value of an earned mile varies across airlines, choosing one with flexible earning and redemption structures in order to maximize potential is crucial for travelers. A round-trip economy ticket costing more with Southwest than American. Therefore, travelers should opt for cards offering flexible earning and redemption structures in order to maximize its potential.
Consider additional travel perks and the insurance policies when selecting your card, such as travel accident and rental car coverage or purchase protection policies. These additional perks could make an impactful statement about how your travel habits have changed; NerdWallet offers an exhaustive list of travel cards with earnings rates that can help guide your decision process and narrow it down even further.
No foreign transaction fees
Some credit cards charge foreign transaction fees that can add up quickly when traveling overseas with them. These fees apply when booking hotels, renting cars and shopping online – usually as a percentage of the purchase amount and they quickly add up! Rather than depending on exchange rates or payment networks themselves, these fees depend instead on fees charged by card issuers and payment networks for doing business internationally.
Many travel credit cards do not charge foreign transaction fees and provide benefits like airline miles, lounge access and statement credits. Some even waive annual fees or allow a limited number of fee-free transactions per month.
Before selecting a credit card for use abroad, it is essential that you consider certain factors. A card without foreign transaction fees could save hundreds of dollars in additional charges; paying in local currency could also help avoid unnecessary fees.
Rewards
Considerations when comparing credit card travel rewards include several elements. First, determine whether or not the rewards justify the annual fee and other costs; also ensure you have enough of a credit score to qualify for cards with excellent rewards; also meet any spending requirements set out as welcome bonuses or to earn additional rewards.
The amount of points or miles earned per dollar spent varies depending on which card is chosen, with some providing multiple redemption options such as cash or gift cards while others only allowing redemption for flights, hotels or merchandise.
Keep an eye out for any protections provided by each card, such as trip cancellation insurance, rental car coverage and purchase protection – these can add up to significant savings if you travel frequently or for prolonged periods.
