Before choosing a credit card, be sure to read about the benefits of a travel-specific credit card. Some of these benefits include protections from theft, fraud, and identity theft, as well as rewards programs and annual fees. Here are a few other benefits that make travel with a credit card worthwhile. Listed below are some of the most important ones.
The Importance of Travel with a Credit Card
Rewards programs
Travel rewards programs offer more benefits than simply free flights. They can be redeemed for things like luxury hotels or business class seats. And while you’ll still have to pay taxes, the final cost of using a credit card for travel is significantly lower than buying plane tickets or hotel rooms through other means. In addition, many travel cards have useful perks and consumer protections, such as free checked bags and statement credits for TSA Precheck or Global Entry.
The benefits of rewards programs vary by travel type. If you spend more than you make on gas, you may want to use your American express platinum card for gas purchases. However, you must use your credit card wisely to get the most value from it. Often, the best credit cards for travel are the ones that have the best rewards programs. Keep in mind that there are many nuances involved in using credit cards when traveling, and choosing the right card is an important part of maximizing your rewards.
For example, the Marriott Rewards program offers hotel benefits. The program has over 3,000 hotels in 70 countries and no blackout dates. Marriott Rewards points are transferable and can be redeemed for flights and rental cars. But be careful – your points expire after two years if you don’t use them. This isn’t a great option for frequent travelers – you should also consider the perks that come with a certain status level.
Annual fees
The first thing to know about travel credit cards is that most come with an annual fee. The higher the fee, the better the perks. Some premium cards can cost upwards of $695 a year. You should carefully weigh the rewards and perks before choosing a card. Unless you plan to travel frequently, high-end travel cards may not be worth the annual fee. However, they do have extra benefits.
Another common fee is the foreign transaction fee. This fee can add up fast if you’re not careful with your international spending. These fees can range anywhere from 2% to 4 percent. When traveling abroad, you should make sure to use a card with no foreign transaction fee. However, keep in mind that these fees are not always covered by the credit card company. For this reason, it’s important to shop around for an international travel card.
If you’re traveling abroad frequently, choose a credit card with no foreign transaction fee. This is especially important if you’re planning on spending more than $3,200 per year overseas. Even a small fee can add up to a lot, and it can exceed the annual fee of many cards. To avoid these fees, choose a card with a $95 annual fee and no foreign transaction fee.
Rate of Interest
While credit cards can help you make a trip more affordable, it’s important to pay attention to your Rate of interest when traveling with a credit. Many credit card issuers offer 0% introductory APR offers, which will help you save on interest. The lower your credit utilization, the better. Taking a big vacation can use up 30 percent or more of your available credit. Not only will your credit score suffer, but you may also feel stressed or depressed because of the huge vacation expenses.