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Are you a frequent traveler or do you travel once in a while? Are you always puzzled about what travel card to use? Well, you’re not alone. Most people don’t have a clue about what options are available and how to go about selecting the right travel credit card.
Selecting the right travel credit card depends on your specific need and how frequently
you travel. Have a look at the top ten things you should know about
Travel Credit Cards:
1. Many credit cards double up as travel cards because they offer air mileage points when you make purchases with your card.
2. There are many debit cards that can also be used as travel cards.
3. If you make frequent trips along the same route and use the same airline and hotel, you may want to choose a credit card that is affiliated with a certain airline or hotel.
4. American Express, Discover, Diners Club, MasterCard and Visa offer travel credit cards. However, American Express is not accepted all over the world. Visa and MasterCard are the ideal cards for round-the-world travel.
5. Some travel cards enable you to get discounts related to air mileage. They offer a two-fold benefit. In simple words, you get mileage discounts and credits not only for your flight but also towards auto and hotel room rentals. You get air mileage credit even for shopping at stores and buying meals.
6. Prepaid travel cards are also available. You have to “charge” the card with money before you can use it. Charges for purchases and other services will be deducted from the deposit.
7. Many banks and financial institutions offer credit cards with travel rewards or points. You can accumulate these points and use them for your next trip.
8. There are travel rewards credit cards that offer cash advances and travel insurance as well. The travel insurance covers lost luggage, medical bills and any other emergency that can take place while traveling.
9. Travel rewards credit cards are feasible only if you are a frequent traveler. If you travel only once in a blue moon, it is not the best option in the world because of the hefty APR (annual percentage rate) and other charges and fees.
10. Travel cards offer numerous benefits to frequent flyer's. But they charge relatively heavier annual fees. Even interest rates are quite high on travel cards.
Travel reward credit cards are gaining in popularity. Each time you make a purchase you are given air mileage points. Typically, at the end of the year the card holder is offered a round trip to a particular destination. These cards are good for frequent travelers. But, if travel is an isolated occurrence in your life, any advantages that you get in terms of points could be diluted by the excessive fees and APR.
Choose a travel card wisely. It helps in saving money. Besides, you never know when you might be faced with an emergency or need extra cash while traveling.