Credit cards provide a convenient and safe method of paying for travel, often offering added perks such as complimentary checked bags or priority boarding.
Many travel cards offer point (or miles) rewards that you can redeem for cash back, statement credits, travel or gift cards at fixed values. Many airlines and hotels partner with these cards to provide enhanced redemption rates.
Sign-up bonuses
Credit card sign-up bonuses offer an easy and rewarding way to score free rewards. Their value can differ significantly based on your spending habits; the best cards will offer rewards rates and perks tailored specifically towards them. Furthermore, make sure to pay your bill in full every month to maximize its benefits.
Travel rewards credit cards offer some of the largest sign-up bonuses. Usually these come in the form of points or miles that can be redeemed for free travel deals or cash back – ideal for long-term business acquisition. However, be wary of annual fees which could cost up to $95.
Points
Airline credit cards often provide generous reward points that can be redeemed for plane tickets and travel-related items, while others even provide special perks like seat upgrades and free checked bags – these rewards can add up quickly to make a significant dent in your travel budget.
Some travel credit cards provide bonus points when used for popular spending categories like restaurants, gas and grocery purchases; others provide elite membership to loyalty programs as a welcome benefit.
Sign-up bonuses or welcome offers can be an effective metric when selecting a credit card; however, avoid applying solely based on value; instead focus on fulfilling minimum spend requirements and spreading out applications to avoid straining your credit score too much.
Extra travel perks
Travel credit cards provide travelers with many additional perks that can add an extra dimension to their trips, from room upgrades and free nights to statement credits and lounge access – these benefits can add considerable value – in fact, some cards even offset their annual fees with these additional perks alone!
How you select the ideal travel card depends on your goals and spending habits. A suitable option should provide competitive rewards rates, valuable perks, and value that exceeds its annual fee.
Choose a card with features most important to you, like automatic elite status or premium benefits that often only come with more expensive cards.
Insurance
Many credit cards provide travel protection options to safeguard you when traveling abroad, including coverage for lost luggage and delays, trip cancellation costs and medical costs. Be mindful that this insurance typically only covers expenses charged directly to the card, with many policies having specific exclusions.
Some cards offer roadside dispatch assistance when traveling abroad, offering services such as jumpstarting your vehicle, unlocking it if it becomes locked and short towing services – however, please see their terms and conditions for more details.
Credit cards often offer rental car collision damage coverage, which can save you money by forgoing expensive rental company policies. It should be noted, however, that this coverage typically serves as secondary protection and may impose higher excesses than standalone policies.
Annual fees
Annual fees charged by travel credit cards may put some travelers off, but doing your calculations and selecting one with features that outweigh its fee can make the card worthwhile.
Premium travel cards often charge annual fees of $95, but often provide several perks that justify this cost. For instance, airline branded cards usually waive baggage fees for both the cardholder and his/her companion while hotel loyalty programs extend elite status to cardholders with these cards.
Other perks could include priority boarding, free hotel stays and waived foreign transaction fees. When choosing the ideal card for you and your spending habits and travel patterns, be sure to carefully evaluate its benefits annually when renewing.
