Travel credit cards can come in very handy, especially for frequent travelers. So, it may be a smart move for such people to get one. This is because of the benefits they stand to gain.
For instance, bonus points that end up reducing travel expenses can be redeemed. Some options even extend certain privileges to companions who are not cardholders. There is just so much that cardholders stand to gain. For more information on this, you can visit: https://smarttravelersguide.com/.
However, getting this credit card will only make sense if the best one for you is chosen. Failure to do this would mean that you have made the wrong decision. Sadly, this is the tale of some people who have several reasons to regret getting their travel credit card.
Knowledge of how to choose the best one is important for this reason. By the way, the right one for you is not necessarily the right one for someone else. This means that you have to take your preferences and peculiarities into consideration. Having made this clear, read on as some of the important considerations for choosing the best travel credit card will be discussed here.
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Considerations for Choosing the Best Credit Card
The best travel credit card for someone else is not necessarily the best one for you. So, your decision should not be based on what best suits other people. You need to understand your needs and preferences. Then, you are to choose one that best suits you based on those needs and preferences of yours.
But on the whole, there are general considerations for choosing the right option. Some of them include the following:
Rewards Programs and Benefits
This should be one of the primary deciding factors to be considered before making your choice. The right one for you should have reward programs. But more importantly, these rewards programs and benefits should be useful for you.
As a result, you should find out the kind of reward programs and benefits that are up for grabs. Here are some of the considerations as it concerns reward programs and benefits:
The Type of Reward
Some of the options include hotel points and airline miles. You should also be concerned about the level of flexibility that comes with the rewards.
For instance, where can you use the hotel points that you have gotten? The same also applies to airline miles. This is because some cards are not accepted by certain airline companies and associated service providers.
You should also find out about how you can redeem rewards. It would make very little or no sense to have rewards that you cannot redeem the best way possible. For instance, find out if you can redeem your rewards using the cash back option. If yes, also find out the rate at which your rewards will be converted.
Bonus Offers and the Requirements
Speaking of reward programs, a good travel credit card would have a welcome bonus package. You need to find out how generous the welcome bonus package is. But it does not end there. You should also make sure that it is realistic to get the welcome bonus.
Some people are too swayed by the offer that they fail to see how near impossible it is to get it. Let us see two examples that would help drive home this point.
Imagine travel credit card A is generous enough to offer 60,000 points as its welcome bonus. However, eligibility for this welcome bonus point is spending a minimum of 6,000 dollars with the card in the first 3 months. This may be unrealistic for many people.
On the other hand, travel credit card B offers 40,000 points as its welcome bonus. Eligibility requires making a minimum purchase of 2,000 dollars with the card in the first 6 months.
Travel credit card A has a more mouthwatering welcome bonus. However, becoming eligible for travel credit card B’s welcome bonus is more realistic. So, you should not only think about the generous offer but the requirements involved.
Blackout dates are another thing to consider. Usually, most of the rewards up for grabs have restrictions. These restrictions include blackout dates. This restricts when you can utilize the rewards that come with using the card.
Additional Benefits Related to Traveling
You need to find out the other benefits besides gaining airline miles. This information is essential for choosing the best options for you. Here are some of the areas to focus on:
- Insurance Coverage – Will you be entitled to any form of insurance coverage? If yes, to what extent are you covered by insurance? Does it include insurance coverage for baggage loss, flight cancellation, and even medical emergencies?
- Concierge Services – Is personalized assistance part of the privileges that you get using the travel credit card? Would you be offered a discount for concierge services? If yes, to what extent?
- Lounge Access – How much discount do you get for wanting airport lounge services? Will your companions be entitled to the same discount? If yes, how many of them?
These are a few questions to ask on the subject of getting additional benefits. Answers to these questions can help you decide if a card is worth it.
The Cost of Securing and Using the Card
The card’s purchase and operational costs are a huge deciding factor in how suitable it is for cardholders. So, you need to do an extensive breakdown of the fees and costs involved. This information will enable you to understand if it is worth it or otherwise. In light of this, here are some of the areas that you should focus on:
Annual Fees
Fortunately, some cards do not require that cardholders pay an annual fee. There are a couple of such options in Norway for instance. You can click here to see a list of these cards and some of their other features. There are even some that charge this fee but would waive it for the first year.
On the contrary, some options charge an annual fee every year. You should find out how much it is if you are considering one that charges annual fees. By the way, some of them have these fees reviewed from time to time. So, make sure you are not working with outdated information.
Cost of Balance Transfer
Some fees come with transferring credit card balances. One important question you should be asking is how much is it. It is usually calculated in interest rate. Knowledge of this cost will help you understand the sense behind choosing a card or otherwise.
Cost of Carrying out Foreign Transaction
Some cards do not require foreign transaction fees. It is a lot better to use such. This is because of their cost-saving benefits. However, there may be reasons to end up with one that charges foreign transaction fees. Just make sure the cost is reasonable if you do.
Accessibility and Acceptance
Some travel credit cards are not easily, or cannot be possibly obtained in certain parts of the world. So, you should consider your location when deciding to choose a card.
By the way, accessibility is not only about obtaining it where you are. It is also about getting customer support with ease. This is particularly during times when you need clarifications or need to file a complaint.
For some of these travel credit cards, it is easier to reach customer support in certain parts of the world than in other parts. You should take note of this when making your choice.
Furthermore, acceptance is a major factor in deciding the best one for you. There is no sense in getting one that would not be accepted in many places where you need it. So, ensure that you understand your peculiarities in this regard and choose one that would suit you well.
Your Chances of Being Granted the Travel Credit Card
Some requests for travel credit cards will be declined by the credit card company. This is because a prospective cardholder is supposed to be eligible before being granted. So, find out if you stand a chance before applying. This would save ineligible people the trouble of applying and being rejected.
Furthermore, your credit score can be negatively impacted simply by applying for this credit card. This happens when the credit card company makes inquiries about your credit state. The impact is not too much in most cases.
However, this is one of the reasons you are to make your application for one count. Finding out what makes prospective cardholders eligible is important for this reason.
Usually, creditworthiness is the major decider. So, you should find out the minimum credit score expected by the credit card company.
Wrap Up
Eligibility, accessibility, acceptance, cost, and rewards programs are high on the list of things to be considered before getting a travel credit card. These considerations will play a huge role in enabling you to get the best travel credit. So, you should make your choice in light of these considerations as discussed in this article.
