Travel credit cards provide many appealing perks, such as complimentary flights and hotel stays, but be mindful that certain cards may also require annual fees to use them.
Saving on credit card travel rewards can quickly pay off, but before investing in one make sure it will meet all your needs.
1. It’s a convenient way to pay
Credit cards make travel expenses easier by earning points or miles that can offset the cost of airfare and hotels, and by eliminating the hassle of finding ATMs or exchanging currency while overseas.
Before selecting a travel card, ensure it fits your spending habits and doesn’t charge an annual fee that would negate rewards. In addition, make sure there are no foreign transaction or cash withdrawal charges associated with using it.
If you plan to travel overseas, notify your card issuer ahead of time so they do not flag your purchases as suspicious activity and cancel or freeze your card or account. Notifying them also helps keep track of balances when frequent traveling occurs, while protecting against fraudulent transactions.
2. It’s safer
Utilizing credit cards while traveling abroad provides added financial protections. Issuers of credit cards typically offer zero liability protection and allow cardholders to dispute unauthorized charges; something not always guaranteed with debit cards that typically provide less consumer protections.
And you’ll save yourself some hassles by prepaying transportation, hotels and excursions with your credit card before traveling. Doing this will reduce foreign transaction fees as well as pickpocket risk by carrying less cash around with you – an easy target for thieves! Just make sure to regularly review your statement for any unauthorized purchases and report them immediately – or sign up for purchase alerts so you get text or email notifications of anything out of line with your normal spending habits.
4. It’s more convenient than cash
Traveling with credit cards reduces your cash requirements significantly, and if your wallet gets stolen locally you can call your card issuer quickly to report its loss and obtain a replacement quickly.
Credit cards make tracking your spending easier, helping you stick to a budget and spend within your means. And having one without foreign transaction fees may even prove more cost-effective than carrying cash abroad as there will be no risk of loss when exchanging back to U.S. dollars.
5. It’s a great way to earn rewards
Maximizing credit card travel rewards means making sure to pay your bill on time and in full each month, without incurring excessive interest charges or negatively affecting your credit score. In doing so, you can ensure you’re taking full advantage of any rewards without incurring high-interest fees and harming your score.
Many travel cards provide new cardholders with an attractive welcome bonus when spending a certain amount in their first months as cardholders. This could involve points or miles earned once spending that total has been met.
Many travel credit cards offer airline or hotel points that can be redeemed for award travel, while other cards provide flexible points which can be redeemed for gift cards, merchandise or cash back (often at lower redemption returns). Compare options in order to select the perfect credit card for your lifestyle and purchase habits.
