Travel credit cards provide many benefits that make them superior to cash for traveling, from airline miles and statement credits for TSA PreCheck or Global Entry applications to other perks and perks when using one abroad.
Consider purchasing items outside the U.S. with a card that does not charge foreign transaction fees – these can add up to 3 percent. In addition, find one with an advantageous exchange rate on purchases made abroad.
1. Convenience
Credit cards are widely accepted worldwide and offer many advantages over cash – from better exchange rates and protection from fees such as foreign transaction charges.
Credit cards offering travel rewards typically waive foreign transaction fees, providing significant savings when dining, shopping and transportation expenses abroad are incurred. Furthermore, reporting lost or stolen cards immediately can reduce liability associated with fraudulent activity that might take place if they become lost or stolen.
Be sure to carefully research the benefits of travel credit cards to find one that suits your travel habits best, for instance airline lounge access and complimentary hotel nights may not matter much if you usually stay at budget hotels.
2. Flexibility
Credit cards provide more flexibility when traveling than cash or debit cards, enabling you to set spending limits and receive bills each month, helping you budget expenses more accurately, especially unexpected costs like dining reservations, souvenir purchases and activities not planned into your original travel itinerary.
Velasquez recommends carrying multiple cards from different issuers for emergency purposes and just in case one gets declined or blocked while you’re abroad, having additional backup options is helpful – not to mention some credit cards come equipped with purchase and trip protections that could save more on travel costs!1
3. Security
Credit cards provide more protection when traveling internationally than cash does, as they tend to be accepted more places than debit cards and offer safeguards against unauthorized charges that might otherwise occur with cash transactions. Furthermore, many credit cards offer fraud liability protection and travel/trip cancellation insurance coverage as additional features of their offerings.
When selecting a credit card to use while traveling, make sure it offers no foreign transaction fees and robust protections and rewards. No matter if you plan to make small everyday purchases or larger ones such as flights and hotels, bringing along a credit card provides additional security, convenience and peace of mind. It may also help to notify your card issuer beforehand to help reduce risk that could flag your account as suspicious activity.
4. Rewards
Credit cards provide valuable rewards that can offset annual fees and make travel more affordable, making frequent purchases like airfare, hotel stays and car rentals more rewarding than ever. Frequent travelers may even qualify for bonus rewards on purchases in certain categories like airfare, hotel stays and car rentals – earning bonus rewards in these purchase categories can help offset annual fees and make travel even more economical. Certain travel cards also give frequent travelers access to exclusive booking platforms or preferred partnerships that help maximize earned rewards while others waive foreign transaction fees altogether, saving travelers hundreds of dollars when totaling up their traditional travel expenses such as airfare, ground transportation costs as well as dining out while abroad.
Take note of recurring travel benefits that could help offset the annual fee, like free checked bags on eligible flights and elite status perks like hotel suite upgrades, complimentary breakfast and airport lounge access. Travel insurance or statement credits towards TSA PreCheck/Global Entry fees could also come in handy.
5. Value
Redeem travel rewards for airfare, hotels or rental cars and the value of a travel credit card will quickly outstrip its annual fee. In addition, many cards also offer additional features like purchase protection and trip insurance that can save both time and money during trip planning; depending on your travel style other benefits could provide even greater value – hotel suite upgrades and airline lounge access may provide even greater savings!
Considered one of the greatest benefits of credit cards for travelers is the absence of foreign transaction fees, which can save hundreds if you make significant purchases overseas. When considering getting a travel credit card, keep these five advantages in mind as an investment – they may make your purchase worthwhile! And don’t worry if these don’t meet your travel needs; there are plenty of others out there!
