Travel credit card Guide

Travel credit cards have become a must-have for frequent travellers, offering perks to save money and make your trips more comfortable. However, with so many options in the market, it can be overwhelming to choose the right one. This post will help you understand what to look for in a travel credit card before you apply for a credit card online to ensure it aligns with your travel habits and needs.

What is a Travel Credit Card?

A travel credit card is intended primarily for regular travellers to help them save money on travel expenses, earn points, and take advantage of travel-related benefits. With every purchase made with a travel credit card, customers can accrue points or miles that can be exchanged for airfare, lodging, vehicle rentals, and other travel-related services. 

These cards are quite advantageous for people who travel regularly, whether on business or for pleasure, as they frequently include extra features like travel insurance, access to airport lounges, and no foreign transaction fees.

Things to Look for in a Travel Credit Card for Frequent Buyers

Below are some of the things that you must look into before buying a travel card:

1.     Travel Rewards Program

Any travel credit card's foundation is its rewards program. Most credit cards give you points or miles for every transaction, but the amount you may earn on travel-related costs like lodging, meals, and airfare varies. Choose a travel credit card that fits your spending patterns and gives you extra points for the most important things, including eating, travel, and groceries.

2.                 Annual Fee

Many of the most feature-packed travel credit cards charge annual fees to access their extensive benefits and privileges. Cards with high annual fees are only good if cardholders utilise enough perks and earn enough rewards to offset the annual cost. Before applying for a travel card with an annual fee, estimate your upcoming travel expenses to calculate if the card’s rewards earnings potential exceeds the fee.

3.                 Flexible Travel Redemptions

When redeeming accumulated rewards towards travel, the redemption value and flexibility the card issuer provides make all the difference. Travel credit cards allow cardholders to transfer points to various airline and hotel partner loyalty programs, often providing the highest redemption value. Transferred points can be redeemed for incredible value towards free flights, hotel stays, car rentals, tours, activities, and more. Cards offering only cash-back redemptions usually provide lower value.

4.                 APR and Interest Rates

While paying off your balance in full each month is best to avoid interest charges, you should still check the card’s Annual Percentage Rate (APR). Travel credit cards often have higher APRs due to their perks, so if you think you might carry a balance, look for a card with a lower interest rate. However, these cards are best suited for people who can pay off their monthly balance to maximise rewards without incurring interest charges.

5.                 Customer Support and Travel Assistance

When travelling, having reliable customer support is crucial. Some travel cards offer 24/7 customer service and assistance, which can help in emergencies like lost luggage or travel disruptions. A card with a robust support system ensures you can resolve issues quickly, especially when travelling internationally.

6.                 No Blackout Dates

One major pitfall to avoid is travel credit cards that impose blackout dates restricting when accumulated points can be redeemed. For maximum flexibility, travellers should select a card with no blackout dates or restrictions on booking award travel anytime there is availability. This allows savvy travellers to take advantage of special award rates and discounts as soon as they open up.

7.                 Additional Protections

Numerous travel credit cards have extra safeguards that might help you save money and feel more secure. These could include extended warranties, fraud protection, rental car insurance, and purchase protection. These advantages benefit regular travellers in safeguarding their funds and purchases on the road.

8.                 Sign-Up Bonus

The most competitive travel rewards cards attract new cardholders by offering highly generous sign-up bonuses to meet reasonable minimum spending requirements within the first few months of opening the account. Large sign-up bonus point hauls provide instant redeemable rewards to put towards upcoming trips right off the bat.

9.                 Lower Forex Markup

                Travel credit cards often come with a lower forex markup, which can help you save         significantly on international transactions. Many standard credit cards charge higher foreign exchange markups (typically 3-3.5%), but travel credit cards can offer much lower fees,         typically around 1-2%. This exclusive facility makes it a great option for frequent travellers                 who make purchases abroad, helping to avoid extra charges on international transactions.

The Bottom Line

Your spending patterns, frequency of travel, and the benefits you value most will all play a role in selecting the best travel credit card. Choose a credit card with no international transaction fees, a robust rewards program, and helpful travel benefits. Pay attention to annual fees and welcome bonuses, and make sure the card offers enough flexible redemption choices to meet your demands. By selecting the ideal travel credit card, you can maximise benefits and cut costs while travelling.