Traveling is always something fun to do, but the right travel credit card can make it even more amazing. The right card can help you save on fees, earn rewards more quickly, and travel with more peace of mind. So here are the five key factors to consider before selecting the card that is best for you.
1. Pick a Rewards Program That Matches Your Travel Style
Travel rewards can be obtained in different ways. With some of them, you earn points that can be redeemed with a large number of airlines or hotel chains; others focus your earnings near a single brand.
According to NerdWallet, for frequent travelers, programs like Chase Ultimate Rewards or American Express Membership Rewards often provide much more value. If you fly with the same airline every time, you may be eligible for free upgrades, priority boarding, additional luggage, and other benefits with a co-branded credit card.
2. Watch Out for Hidden Fees
Pay close attention to the annual one, late payment fines, and, more importantly, foreign operations commissions. Though small in terms of percentage, typically between 1% and 3%, they quickly add up when you are out of the country.
The Consumer Financial Protection Bureau recommends paying close attention to the fee schedule. Some travel credit cards do not charge foreign transaction fees at all, which saves you up to several hundred dollars a year if you travel a lot. Also, read about the bank’s policy on the exchange rate.
3. Look for Built-In Travel Insurance and Protection
For instance, various credit cards also offer benefits such as trip cancellation insurance, lost luggage reimbursement, or rental car coverage. According to ValuePenguin, most premium travel credit cards offer some form of basic travel accident or emergency assistance benefits.
And, if you are traveling with family, inquire about the benefits. No, these benefits are not standard, but they could prove to be revolutionary in the event of a flight delay or the loss of all your belongings.
4. Understand Sign-Up Bonuses and Spending Requirements
For example, that enticing sign-up bonus might be worth hundreds of dollars in travel rewards—but with one major caveat: You’ll typically need to spend a set amount in the first few months to earn it.
That’s up to the individual, but The Points Guy values many of them at about $500, and they guarantee several flights or lodgings. But you would rather not overspend trying to meet the target. Remember to continue using the card for your everyday spending.
Further, some cards offer bonus points in specific categories like grocery shopping, fuel, and dining. If that’s where you spend the most, look for a card that gives an extra reward there.
5. Check Customer Support and Security Features
Choose a card that provides 24/7 global support, quick fraud alerts, and the opportunity to lock your card in seconds in case of a problem. The Federal Trade Commission also advises you to go for the zero-liability fraud protection card.
This way, you will not have to pay for unauthorized deals if your card gets compromised through stealing or hacking. In addition, the majority of the major credit card networks, such as Visa and Mastercard, have global support numbers as well as offer emergency card replacement.
Choose the Card That Works for You
In conclusion, identifying the best travel credit card need not be challenging. Make sure to carefully compare your preferred cards side-by-side, focusing on factors such as rewards, fees, protection, and customer service. A small amount of background research at this stage will likely spare you needless cost and headache in the future.
