There is no one-size-fits-all answer to this question, though some individuals can successfully maintain multiple travel credit cards by paying off balances in full and participating in frequent flyer and hotel loyalty programs to maximize point and mile redemptions.
Travel cards may be costly if you carry an outstanding balance or pay interest, and may not be worth your while if they cause you to overspend.
How often do you travel?
Travel credit cards often provide rewarding rewards when spending on flights, hotels and rental cars – in particular flights involving priority boarding or lounge access. They also tend to come equipped with additional perks that enhance flight experiences such as priority boarding or lounge access.
If you travel often, having a co-branded airline credit card could help maximize flight miles while offering rewards on other spending categories as well. But if flying is not part of your routine or you wish to build credit score quickly, perhaps opting for a general travel rewards card with high earning rates could be better suited.
Consider whether a credit card with no foreign transaction fees would benefit your travel habits. Foreign transaction fees can quickly add up if you spend abroad, so an option without these charges might save money. These cards often come with higher annual fees, however; so they might not be suitable for travelers who do not spend enough abroad to justify this cost.
Do you want to earn rewards?
Credit cards offer many rewards, but the card you carry should reflect your spending habits and travel needs. Keep in mind that not all points and miles are created equal – make sure that any you carry offers multiple redemption options as well as partners with airlines or hotels for seamless transfers across brands.
Some individuals prefer having multiple travel cards as well as general rewards cards offering high earnings in bonus categories, while others may prefer ones offering cash back or an introductory 0% APR on purchases.
Keep in mind that canceling credit cards could have negative repercussions for your score, so it is best to leave some open so as to continue building credit history. Just be careful to apply only for cards you can manage and repay on time as otherwise debt may spiral out of control quickly.
Do you want to avoid annual fees?
When selecting travel credit cards, it’s essential to carefully evaluate whether their annual fees are worth it. A card’s benefits – rewards rates, cardholder perks and insurance policies could more than make up for its annual fees.
Travel credit cards often offer attractive perks, including Global Entry/TSA PreCheck/CLEAR credits that more than offset an annual fee, free checked bags and elite status on certain airlines.
Redeeming credit card points and miles is an effective way to cut travel expenses, though keep in mind that redemption values vary and don’t always transfer one-for-one from card to card. Finally, cancellation can damage both your credit utilization ratio and score; consider opting instead for another issuer with lower annual fees, or another card altogether.
Do you have good credit?
Carrying multiple travel cards can offer several advantages to those with good credit, including bonus point offers and additional layers of security. Multiple cards also help manage debt-to-income ratio more efficiently by decreasing how much of your available credit limit you use at any given time, known as credit utilization ratio.
Airlines credit cards may provide key perks like complimentary checked bags and lounge access as well as travel insurance; but if the annual fees don’t justify earning enough rewards to justify them, it might make more sense to opt for a general travel credit card and maximize its benefits.
Some credit card issuers take your past history into account when reviewing an application for a new credit card, particularly if it involves opening multiple cards from the same issuer in recent months. Therefore, it may be best to wait and improve your score until qualifying for more favorable terms and higher limits can be established.
