Travel credit cards provide many attractive benefits and rewards, but it’s important to remain aware of any fees or charges to ensure the card fits with your spending habits and travel plans.
Travel credit cards typically provide rewards in their issuer-specific currency, such as miles or points that can be redeemed for cash, travel packages or gift cards. Some travel cards even offer co-branded benefits like airline lounge access.
Sign-up bonuses
Travel credit cards often provide welcome bonuses of thousands of points or miles upon signup, while also providing other perks that save travelers money when booking flights, hotels, or rental cars. Such benefits make travel cards the ideal solution for people who spend a lot on their vacations – though many consumers find they cannot meet minimum spending requirements necessary to unlock bonuses; this is especially prevalent among Northeast residents (where 79% have reported being unable to earn bonuses).
At the core of any travel credit card decision should lie its rewards program. Some travel cards provide points redeemable through their loyalty program while others may tie to specific airlines or hotel brands; the former tends to provide greater value, while latter types can help earn high numbers of airline or hotel points that can be redeemed directly in different ways.
Consideration should also be given to a travel card’s annual fee, with some cards charging no annual fee at all and others having high annual fees that could potentially offset its rewards and perks; credit card issuers usually list these estimates on their websites.
Travel cards are widely held among Americans, with 27% owning one. Their use is especially widespread among six-figure earners (55%), Gen Zers (40%), and those living in the West (32%). Travelers may prefer a general travel rewards card that provides flexible redemption options while others opt for co-branded cards with benefits like airport lounge access or trip cancellation coverage.
While most travel credit cards require you to spend a certain amount in order to unlock their sign-up bonuses, planning ahead can often help avoid going over budget and you could also use your card for non-travel purchases to help reach that threshold more quickly.
Fees
Travel credit cards provide cardmembers with many rewards and benefits, including co-branded airline and hotel cards that award points or miles on each purchase, others offer flexible point systems that can be redeemed for any type of travel, while some even provide benefits like trip insurance, rental car coverage and airport lounge access. Most travel cards charge an annual fee, which should be taken into consideration before applying.
Many travel credit cards provide generous sign-up bonuses that make their annual fees worth it, though fees on travel cards can add up quickly if your balance is not paid off in full every month. Therefore, it’s wise to only use them when planning to travel abroad.
Travel cards often carry high interest rates that quickly outstrip any rewards they offer, which can outweigh them quickly. Luckily, the best travel credit cards have lower APRs than non-travel cards and often waive foreign transaction fees as an added benefit.
If you travel regularly, a travel credit card might be the right fit. These cards offer travel-related perks like free checked bags and discounted hotel rates that could save money over time. But for less frequent travellers, cash back cards could provide better value.
Most travel credit cards require annual fees that may reach several hundred dollars. Some cards don’t charge any annual fees at all while others come with significant perks and rewards that make up for it.
Before choosing the appropriate travel credit card for you, it’s essential to understand their functions. Different travel credit cards offer differing rewards and fees structures – usually you can find something suitable. Checking terms and conditions before applying can also help determine if a card meets your needs, while maximising travel rewards. Many cards also feature grace periods so you can pay off any balance without incurring interest charges.
Redeeming points or miles
Travel credit cards allow you to accrue rewards on daily purchases and redeem them towards flights or hotel stays, offering better return than traditional cash back cards and including added perks such as trip delay/cancellation insurance, airport lounge access, hotel status upgrades and waived baggage fees.
There are numerous types of travel credit cards. Co-branded cards, in which a card issuer partners with an airline or hotel brand, typically enable you to earn and redeem rewards within their program; alternatively, others provide more flexible redemption options that enable booking travel on any airline or hotel without restrictions or blackout dates; these may have higher redemption values but often come with stricter qualification criteria and higher annual fees than co-branded cards.
Your ideal travel credit card depends on your unique needs and spending habits, but when considering all available cards it’s a good idea to compare benefits, redemption options, bonus offers and bonus point opportunities before making a final choice.
Selecting the appropriate travel credit card is a key step towards planning future vacations. Since many travel rewards cards require good to excellent credit scores, it is wise to conduct a credit score check – available free through Experian – prior to applying. If your score falls below 670 it may be worthwhile working towards improving it before applying for travel rewards cards.
Some travel credit cards feature cash-value features, where points can be exchanged for gift cards or merchandise. These cards can be found at major retailers and provide more flexibility than cash-back options.
Some travel credit cards provide you with multiple redemption options, including flights, hotel stays and car rentals. Other cards provide specific perks – for instance a 5% hotel booking discount or 25% airfare bonus – making these cards ideal. In addition, other benefits may also come standard such as no foreign transaction fees and travel insurance policies.
Expiration dates
Credit card expiration dates are one of the most crucial components to knowing, as it affects both your rewards program and security of card data. They’re printed on the front of your card in two-digit month/year format – so if your travel plans involve postponing using it after its expiration date has come and gone, make sure that a replacement card is ready before heading off! You should also update any recurring payments with its new expiration date/CVV code combination as soon as you purchase any trip that may occur post card expiration!
Cards come with expiration dates for various reasons, including wear-and-tear and fraud prevention. When they reach their expiration dates, the expiring card no longer functions in stores or online and its issuer sends you a replacement with additional features, like EMV chip technology or contactless capability.
Card issuers usually send new cards out before your old card has expired; until that time, keep your old one in your wallet until your new one arrives. When the new one arrives, activate it so it works again; most new cards feature stickers with activation numbers or websites where you can verify your identity and activate your new one.
If you own a cobranded card that earns airline or hotel loyalty rewards, be sure to familiarize yourself with their expiration policies. In light of the coronavirus pandemic, many hotels are extending point expiration policies for current members allowing you to redeem points for stays until the end of 2017.
Travel credit cards provide many advantages, from lounge access and discounted airfare, to rewards such as lounge membership. Understanding their workings is crucial if you hope to use these cards properly; here is our selection of the top travel cards.