Credit cards offer so many perks and privileges. However, your needs have to inform your choice. For starters, you need an answer to the question “What kind of credit card best suits me?”.
Provide the right answer to avoid getting the wrong kind. At this point, the problem would not be the credibility of the payment solution, but its relevance. On this note, you should know that travel credit cards are only suitable for some. It is best suited for people who travel frequently.
You can start searching for one if this perfectly describes you. You can check https://www.kredittkortinfo.no/kredittkort-reise for information on some of the options out there. However, knowing what to look out for cannot be neglected. This is why this article sheds light on how to choose the right one, among other relevant subjects.
What to Consider When Choosing a Travel Credit Card
There are general rules that apply when choosing credit cards. Beyond these rules, there are peculiar rules that apply to those searching for the right travel credit card. By and large, some of the things to consider when searching for travel credit cards include the following:
Rewards
The possibility of accessing rewards is one of the major reasons people get this kind of credit card in the first place. As a result, it is only logical that you understand the kind of rewards that are up for grabs and how they benefit you or otherwise. Speaking of reward types available, prime examples include:
- Airline Miles
- Hotel Points
- Cashback
Airline miles are perks that enable you to pay for trips at a fraction of the real cost. Hotel points are kind of similar, except that they allow cardholders to pay for hotel accommodation and related services at a fraction of the cost. Cashback offers cash rewards for specific purchases made using the card.
By and large, a cardholder qualifies for these reward types and several others by meeting specific criteria. More often than not, the criteria are making specific kinds of purchases using the card. There might also be conditions stipulating how much has to be spent using this payment solution.
In the spirit of properly evaluating the kinds of rewards that are up for grabs, you should also ensure that they align with personal goals and preferences. For example, you need to be certain that the rewards will truly reduce travel costs.
Furthermore, you should be curious about how offered rewards are to be redeemed. By the way, some redemption conditions are ridiculous and undermine the logic behind using certain travel credit cards. So, make sure to find out if the issuer’s redemption policies make using the card worth it.
Charges
Several charges apply when these cards are issued and used for the most part. The annual fee (if applicable) is high on the list of charges that you need to inquire about. The annual fees of some options are quite on the high side, while there are options that are very affordable in this regard.
To put things in a very clear perspective, it might interest you to know that there are options that require an annual fee of close to 700 US dollars. On the end of the continuum are options that do not require any annual fee.
However, it is worth mentioning a credit card’s annual fee should not solely form the basis for your choice. This is why you should compare the charges (including annual fees) with the benefits. Doing this will put you in a very good position to tell whether or not using the card is worth it.
Foreign Transaction
It was not too long ago that this article stressed how there are peculiar considerations for people who intend to choose the right travel credit card. Well, this is a prime example. This is considering how the need to pay foreign transaction fees is not a concern for all cardholders.
Well, it most certainly is a huge concern for travel credit cardholders. This is because of their frequent appearance in foreign locations and the need to make purchases in such places. To this end, people who need one need to find out how the options being considered fare in this regard.
The best bet is to choose something that allows foreign transactions at zero cost. However, you may still settle for options that are very inexpensive when used in foreign locations. This is especially true if other benefits are very worth it.
Acceptability & Accessibility
They are supposed to be payment solutions besides offering credit lines with specified limits. This is why you need to find out how well-accepted they are before choosing. The reason is that it can be very frustrating being a cardholder and being unable to make the most of your card.
Low acceptability reduces the usage value of credit cards. So, you should go for something that will not give you issues in this regard.
To this end, evaluate the degree of network partnership that the issuer has. Your areas of focus should include hotels, airlines, travel providers, and lots more. For the record, your ability to make the most of rewards is largely dependent on how well-connected the issuer is with other partners.
For example, a cardholder may have sufficient hotel points and would still be unable to make use of it in certain hotels. This could happen if the gathered points cannot be redeemed at such hotels. So, this is indeed a major area of focus when choosing.
Travel Benefits
It is called a travel credit card for a reason. It is supposed to best serve the needs of travelers, as its name suggests. To this end, the card’s ability to come through for travelers should be one of the most evaluated things.
For this reason, find out what you stand to gain as a traveler using the card. Some of the perks that you may want to look out for include:
- Priority Boarding
- Access to Airport Lounge
- Complimentary Checked Bags
- Insurance Coverage as a Traveler
- Concierge Services
Beyond evaluating how much you stand to gain as a cardholder with these offers and possibly more, you should bear in mind the frequency of your travels. Your eventual choice needs to suit you even after you have considered how often you would be traveling and using the card.
Making the Most of Travel Credit Card Perks
It is one thing to get the right travel credit card and another to use it correctly. Doing the former and neglecting the latter would still make it seem like you made the wrong choice. To this end, here are some valuable tips:
Earn & Redeem Rewards Efficiently
This should be your goal from the onset. However, there are several steps to ensure that you are not found wanting when it comes to efficiently earning and redeeming rewards. The steps in question include the following:
- Understanding Reward Programs – You cannot make the most of benefits that are not well understood. So, start by knowing the available perks and the implications of using them
- Maximizing Bonus Categories – Deciding to make the most of every available perk might be unrealistic. So, you need to discover which ones are worth it and make the most of them. By the way, this is also about spending strategically as doing otherwise can be very bad for your finances
- Use Sign-Up Bonuses – Sign-up bonuses are usually very juicy offers and it mostly makes sense to utilize them. You just have to meet the requirement, which is usually making a certain amount of purchases before a set period
- Redeem Wisely – It is not enough to choose the best reward categories. You also need to choose the best redemption options to make the most of your gathered rewards
Make it a point of duty to be updated about the latest developments. This is especially because perks do not last forever. So, you should be well aware of available perks that would benefit you.
Responsible Credit Management
Many people have damaged their credit score and financial standing simply by making poor use of credit cards. So, these credit lines and payment solutions have to be used wisely. In the spirit of doing this, you need to do the following:
Make Full Payment
Your balance for each month should be paid in full. Doing this would save you the trouble of dealing with accruing charges, which can quickly get out of hand.
In simpler terms, do all that you can to avoid carrying over any balance. You can read this article for more reasons why you should not carry over your balance.
Close Monitoring & Review
Your purchases with the card have to be closely monitored. Doing this ensures that you avoid spending beyond the safe threshold. Furthermore, credit reports should be properly and periodically reviewed. This is to ensure that everything checks out.
In Closing
A lot depends on the qualities of the travel credit card that you eventually settle for. This is why you should leave no stone unturned in choosing the right one.
However, it is also important that you use the right travel credit card correctly, which is why this article has also covered this subject. So, make the right moves in line with the details shared here.
