How To Choose The Best Travel Credit Card
After two years of the COVID outbreak, travel restrictions have eased, and tourism is bouncing back. As you are planning your new trip, you’re probably wondering what is the best travel credit card to get alongside preparing the travel essentials. Don’t worry because this article will give you the significant factors to consider when choosing a travel credit card in this new era.
1. General or Co-branded Card
Choosing between the two types might be tricky. Your spending patterns and desired travel rewards will determine which card you should apply for.
A general travel rewards credit card bears the name of a financial institution on the front. You can apply for either one of these cards from the credit card issuer, a financial organization like a bank, or a credit union. The network and credit card issuer logos will be on the card. These credit cards are used wherever that accepts the credit card network.
A co-branded card is a collaboration between a retail business and a Visa or Mastercard-affiliated credit card network processor. Thanks to network processors, you can use credit cards at retailers that are part of a card network. For example, Southwest Rapid’s Premier Credit Card allows you to make transactions anywhere Visa accepts due to the Visa logo.
In summary, a co-branded card is a clever method to reimburse more of your expenses if you frequently fly with one airline or check in with one hotel chain. If not, you’ll have far more options with a generic travel card.
2. Travel Perks
Many travel cards provide bonus miles or points if you spend a specific amount within a certain time. You may earn these points with everyday purchases through your credit card. Some sign-up bonuses are large, equivalent to a free trip or hotel stay. However, you must choose a card whose perks apply to you.
To determine whether a card offers better value than another, you can compare card perks side by side. For instance, the Capital One Venture Rewards Credit Card gives cardholders a cost credit for Global Entry or TSA PreCheck, while the Chase Sapphire Reserve provides free lounge access.
3. Extra Rewards for You
As you travel, some credit card benefits and safeguards are beneficial. For instance, a few credit card networks and issuers provide concierge services, emergency help, lost luggage insurance, travel delay, accident insurance, rental car coverage, and insurance for lost luggage. Numerous high-end travel credit cards, particularly those co-branded with an airline or hotel, provide worthwhile benefits, including free checked baggage, priority boarding, special rates, room upgrades, and a variety of travel credits.
Channel your inner accountant and calculate the credit card with the least fees. There are two general fees that you need to consider: annual fees and foreign transaction fees.
Most travel rewards cards have yearly fees, especially the premium tier ones. Annual fees for premium credit cards can reach over $500. In most circumstances, annual fee credit cards with travel rewards will offer higher advantages and benefits. However, before choosing a card, you should weigh the annual charge against such rewards and bonus packages. Make sure the rewards and benefits you receive outweigh the yearly costs.
Although some travel rewards cards do, the bulk does not charge foreign transaction fees. You might incur additional costs when making a transaction in a different currency. Make sure your chosen card has no such fees if you intend to use it for international travel. If you intend to remain in the US, this is not significant.
Traveling is expensive, especially since prices for everything from goods to gas keep increasing. When you arrange your next trip, every dollar counts. Whether you travel a lot or just once a year, a travel credit card can save you money when you book your trip and buy things while you’re away. Now, what are you waiting for? Pick a credit card and book your most awaited trip!