Traveling is always a fun activity, but the right travel credit card can make it even more enjoyable. 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
There is more than one way to earn travel rewards when traveling with a travel credit card. With some of them, you can rack up points to use with a wide range of airlines or hotel chains; for others, the points are limited to one brand.
Travel credit card programs like Chase Ultimate Rewards or American Express Membership Rewards typically offer a lot more value to frequent flyers, and many consider them to be the best travel credit cards for frequent travelers. If you fly one particular airline all the time, a co-branded travel credit card could grant you free upgrades, priority boarding, extra bags, and other perks.
2. Watch Out for Hidden Fees
Pay close attention to the annual fees, late payment fines, and, more importantly, foreign transaction fees. Though small in percentage, typically between 1% and 3%, they quickly add up when you are out of the country, which directly affects the fees and protections of travel credit cards.
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 travel credit card providers 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. These benefits aren’t standard, but they could be game-changers if your flight is delayed or you lose everything.
4. Understand Sign-Up Bonuses and Spending Requirements
For instance, that irresistible sign-up bonus on a travel credit card sounds like a few hundred bucks in travel rewards—but there’s one big catch. You’ll have to meet a minimum spending threshold during the first months to earn it.
The Points Guy values many of them at around $500, and they buy several flights’ or lodgings’ worth of insurance. But you’d prefer to avoid excessive spending in pursuit of the goal. Just remember to use the card for your everyday spending.
What’s more, many cards reward you with bonus points in certain categories such as grocery stores, gas and dining. If that’s where you’re spending the most, try to find a travel credit card that awards extra points there.
5. Check Customer Support and Security Features
Choose a travel credit 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 as part of strong travel credit card fees and protections.
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 major credit card networks, such as Visa and Mastercard, have global support numbers and offer emergency card replacement services.
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.
