Travel credit cards–You probably dream of traveling across the world to see distant lands and making wonderful memories. Traveling can be very expensive. The cost of food, flights, hotels, and recreation can add up very quickly. If you do not prepare for these expenses, trips may cost more than you can afford. Travel credit cards are a great way for you to pay for traveling expenses and earn remarkable incentives that assist with current and future travel needs. There are a number of travel credit cards that are available, but you have to decide which one is right for you.
What is a travel credit card?
A travel credit card is very different from a traditional credit card. With a traditional credit card, you do not earn rewards for using the credit card. A travel card allows you to earn points that you can use for hotels, cash, restaurant meals, and airfare. Cardholders have the opportunity to take a dream vacation or use the money in other useful ways. In the unstable economy, a travel credit card comes in handy. How many times do consumers get something in return for spending money? It does not happen very often in today’s world. This is a unique opportunity that traditional credit cards do not offer.
Why use a travel credit card?
There is no point in getting a travel credit card if there are no benefits for the user. Cardholders must look at such aspects as the rewards, interest rate, fees, and usability to decide if the travel credit card is a good choice. It can take an extremely long time to accumulate rewards if customers do not consider these and other aspects of the travel credit card. Make sure that the travel card has the following:
· Card Usability
Cardholders should find a travel credit card that is usable anywhere. Some cards tie the card user’s hands with the specific retailers in which reward redemption is permitted. No one wants to be limited to the airline, retailer, or hotel to use and redeem rewards. Make sure that there are no travel date restrictions as well. Cardholders should have the ability to travel anywhere at any time.
· Sign Up Bonuses
Cards should offer customers at least 30,000 miles or points for signing up for the travel credit card. Customers should not apply for the card if it offers less miles or points because it can take years to earn rewards. Many companies are desperate to get customers to sign up so bonuses between 60,000 and 100,000 points are offered to customers.
· Reasonable Annual Fees
These fees generally range between $50 and$100 annually. Cards with annual fees offer better rewards, services, travel protection and more. Customers usually spend less on travel that on fees when traveling frequently.
· Special Offers or Rewards
One point per dollars spent is usually what travel credit cards offer. Many cards offer extra points to customers who shop at specific retailers or buy specific brand name products. Shopping is necessary so it makes since to own a travel credit card that offers benefits. Triple points are available with some companies, and customers can earn rewards and trips even sooner.
· Good Conversion Rates
The conversion rate is the dollar to mile rate. Depending on the travel credit card, cardholders may earn as much as 3 times the rewards for money spent. Pay close attention to the different rates offered for different services. For example, a credit card may offer a 2% hotel reward but only 0.5% cash reward. Some companies offer better conversion rates when cardholders order online or use a specific retailer. Take some time to calculate the conversion rate on rewards before committing to a particular travel credit card.
· Low Foreign Conversion Fee
These fees come from using the travel credit card abroad. Big credit card companies generally do not charge a foreign conversion fee. The companies that do charge the fee usually charge between 3% and 10%. Foreign conversion fees can cost cardholders hundreds of dollars over time. Cardholders can avoid this fee by making purchases through the U.S. version of websites to receive charges in U.S. dollars.
How to Apply for a Travel Credit Card
Customers can apply for travel credit cards the same way as traditional credit cards. Apply for the travel credit card through a particular airline, hotel, retailer, etc. The credit card companies need specific information—such as name, date of birth, social security number, and address—to process the application. Customers can even apply for the travel credit cards online by shopping around. The application is declined or approved in a matter of minutes.
Travel reward credit cards offer an abundance of benefits and rewards that traditional credit cards do not offer customers. Make the best of spending by using a travel reward credit card to earn rewards, trips, hotel stays, and other special offers.