You can understand the hassles that come with travel if you have financial emergencies on the way. You may run out of money, or your bank may become unable to disburse when you are in need. If that happens while you are in a foreign land, it may be challenging to find a solution, and sorting issues out may take a long time.
However, getting the best travel credit card is the answer to having all the funds you need while traveling. The problem is not finding the right card; many issuers have excellent travel and usage rewards. Check out this resource: kredittkortinfo.no/kredittkort-reise to learn more about the rewards and advantages. Picking one from the array of choices is where the problem is.
Fortunately, we have narrowed down ways to choose what fits your needs, so you only spend a little time deciding. Let’s get right into it.
How to Choose a Travel Credit Card
The best credit cards for travel usually have insurance and offer free nights, free travel miles, airport lounge access, and other perks. Apart from these, the right one also caters to your travel needs and spending ways when you are in a new place. Therefore, the following are ways to choose one specifically for traveling.
- Think about the Sign-On Bonus
If you do not already know it, many travel credit cards have excellent rewards simply for signing up with them. Companies fall over themselves to outdo each other, which gives the customer the upper hand. When picking one, think about the sign-on bonus. Some offer more than others, and getting overwhelmed with all the offers may distract you from focusing on the suitability details.
You may find sign-on bonuses as high as $800 to $1000. They come as bonus points, and when you understand the conversion rate into actual money, you can put the funds to good use while on your trip. However, they are not cheap; you must meet the required minimum spending limit within the specified timeframe.
For some, the minimum is as little as $500; for others, it is as high as $5000. Consider meeting the requirement by charging your daily expenses to the card so you can claim the rewards. However, it can become difficult to pay back the excesses on the card if you exceed the limit on it before the expiration of the timeframe.
On the bright side, some issuers offer rewards for single spending as long as you pay the annual fee. Therefore, weigh your options before deciding on any particular company.
- Check the Minimum Spending Point
As mentioned, every credit card issuer offering bonus points has a minimum spending point. Some are as low as $500, while others are as high as $5000 or more. This factor should inform you which way to go; should you continue your business with a specific brand or look elsewhere?
You must be able to meet these limits before accessing the rewards. Otherwise, you may lose access to them.
Avoid getting too many cards as you try to amass many reward points. Stick to those that offer reasonable minimum spending points that fit well with your budget. Remember that the spending point has a timeframe, usually between 3 and 6 months. Be sure you can reach that point within the given timeframe before picking one.
However, that does not mean avoiding all with high minimum spending points. After all, they usually have significant reward points and access to the best hotels and agencies around the world. Start small and work your way up the more you travel. Keep it simple by applying for those with a spending minimum within your budget, and servicing your card will not be an uphill task.
- Find Out the Accruing Spending Bonus
Every issuer rewards you with a point for every dollar you spend. If you spend $3000 on your trip, you get 3000 points. While this reward system sounds excellent, it can be better. You can earn extra points for your spending if you use the right card for your travel.
Some issuers give extra points when you shop in some retail stores. Also, co-branded cards offer good points as a reward for buying from a specific brand or using its services.
Therefore, consider these aspects before deciding. How much reward will you get for spending? This is particularly true for heavy spenders; you can get as much as three points for every dollar spent.
Some even offer much more than that, although their annual fees and other charges may be much higher than others. Go for such cards to maximize your trips as you spend. The more you travel and spend, the more your reward points and accruing benefits increase.
- Consider the Fees
Knowing about travel credit card annual fees for maintenance and other services is essential. Consider how much these and additional fees are before choosing any particular one. Some have reasonable fees, less than $100 per year. You can justify it when considering all the perks that you enjoy with the partnership. It may be worth paying the fees and keeping the card for expenses.
However, how about those that have no annual fees? Yes, some companies offer these cards with all the perks without attaching these fees. You can cut how much you spend on maintenance by weighing all your options before choosing. Also, consider the charges on transactions when in a foreign country.
While credit cards with little or no annual fees are great, they may not be in your best interest if you want to accumulate rewards. Those with annual fees typically have a better reward program than those without a fee.
You get bigger and better points faster, translating to more convenient trips and luxury. Compare the payments to the value of the reward points and do the math. If the value outweighs the fees, it is wise to stick with fee-based credit cards.
While trying to meet the minimum spending limit on the card, you may accrue a lot of money in charges because the charges are usually about 3% of each expense or transaction. If that is a genuine concern, consider using a card with little or no charges on foreign transactions. Doing that can considerably reduce your card fees and service charges.
- Choose Between a General and Co-branded Card
Is ease and efficiency your goal, or do you want to add bonus or reward points? You can choose between a general credit card or a co-branded card.
A general credit card for travel comes from a bank without affiliation with any airline, hotel, or agency. It has the usual reward points, but you can only redeem them in the bank’s portal for redeeming such points. Some issuers may allow you to transfer the reward points to agencies, hotels, or airlines without affiliation, but these agencies must agree with such transfers.
On the other hand, a co-branded credit card comes from a bank that partners with agencies, airlines, and hotels for travel purposes. They agree with these organizations to convert bonus points to points in the hotel’s or airline’s loyalty programs. That way, you can take advantage of the perks of using their services without paying extra.
If you are a frequent traveler, you may benefit more from a general travel credit card than a co-branded one. You can use any hotel or airline you like if you can use your reward points any way you prefer during your trips. A co-branded card restricts you to specific airlines and hotels the issuer partners with, which can be restrictive. This card works best for travelers who are loyal to those brands.
- Decide the Most Important Travel Benefits
This factor may be one of the most crucial in helping you choose the best credit card. The benefits accruing to the card you choose can make your trips better or mar your enjoyment and ease of travel. You must also compare the benefits with the annual card fee, deciding whether they are well worth the money in the long run or if you can simply use that fee to get those benefits you want.
These benefits include quick airport security clearance, hotel elite points, access to airport lounges, and airline perks. Some cards offer benefits that are not entirely useful to you on your trips, which makes their offers less than worthwhile.
In such cases, you cannot justify the annual fees, but if such a card makes trips more convenient, it may be worth your consideration. Other times, the benefits save you time, stress, and money you would have spent to get the required comfort and convenience.
7. Consider Your Destinations
If you frequently travel internationally, you must know that not every credit card is accepted in every country. Some have a wider coverage than others, so consider that when choosing the best credit card for travel. These cards may work within the United States but become unusable in a foreign country.
If you use a MasterCard or Visa, you can use it anywhere because these payment networks are generally reliable in any country. However, an American Express or AmEx card may be unreliable for foreign travel. A reliable backup card is ideal so you are not stuck while paying for something.
Also, think about the foreign transaction fees when on the move. Choose one that does not charge these fees, but you must not sacrifice other perks that may be useful in the long run. Click here to learn more about using your credit card for international transactions.
Conclusion
You will find the best travel credit card if you know the points to consider. Look for those without high annual fees, although these fees are not bad because such cards offer better rewards. Also, consider the spending bonus, minimum spending point, and the travel benefits that make trips easier and save money.
Fortunately, many issuers have excellent offers, so you will not look far to find an ideal card. Still, pay attention to these points, and you will get the best deal.
