As the economy continues to improve, more people are opting for a simple vacation over spending days shopping and touring different cities. By choosing a travel credit card, travelers can enjoy an extended stay at their favorite destination without having to worry about paying for it. Every day, people use credit cards to make purchases in stores and online, and while very few people actually have cash on hand these days, it’s still possible to travel without your wallet being full of currency. With a travel credit card , travelers can charge the entire cost of their trips, leaving more room for spending money once they arrive at their destinations.
How a Typical Travel Credit Card Works
Travelers receive points that can be redeemed for free hotel stays and upgrades as well as discounts on car rentals and flights. This feature makes it easy to reserve last minute accommodations or plan ahead for longer trips when prices are lower. Travelers automatically build credit by using their travel credit cards to make qualifying purchases which usually are directly related to travel expenses for these types of cards. This can be helpful when it comes time to finance large purchases for large trips or expensive family vacations. It’s possible to earn travel rewards for making everyday purchases. For business-owners, this means that a travel credit card can help cover costs associated with traveling to client meetings. Travelers are able to pay for incidental costs and emergencies while they’re away from home without worrying about carrying cash or exchange rates.
Factors to Consider Before Applying
When opening most accounts, applicants must have an annual income of at least $12,000. People who make less than this amount may want to apply as joint account holders or use an authorized user account in order to build their own credit. Travel credit cards generally have high annual fees, but users can offset these costs by attaining travel rewards. Before applying for a travel credit card, it’s important to estimate how many points will be accrued each year and make sure the card’s benefits outweigh the cost of using it. Applicants must pay off their balances in full every month to avoid interest charges. If you usually carry a balance on your existing credit cards, you should consider applying for one with a lower APR before committing to a new account. – Many travel credit cards require applicants to have excellent or good credit scores . Applicants who have fair or poor credit should consider asking a family member or friend with good credit to add them as an authorized user or co-signer.
The 5 Best Travel Credit Cards
If you like to travel or are thinking of taking a vacation outside the United States, here are the best credit cards you can use abroad. These credit cards offer excellent benefits to travelers such as: points or miles, security, travel insurance, etc.
1. Capital One Venture Rewards: The Capital One Venture Rewards Credit Card offers 2 miles for every dollar you spend or on every purchase you make, plus you can earn 10 miles on hotel reservations through the Hotels.com page. After you spend $3,000 in the first 3 months of opening the account, you can earn a 50,000 bonus in miles. The miles you earn when you make purchases can be redeemed or used to buy hotel rooms, cruises, flights, rent a car, etc. In addition, when you obtain the credit card, you can receive up to $100 in credit, which you can use at the security points of the Transportation Security Administration (TSA, for its acronym in English) at airports. Card interest can range from 17.99% to 25.24% APR.
2. Chase Sapphire Preferred: With the Chase Sapphire Preferred credit card you can earn 50,000 points after you spend $4,000 on purchases during the first 3 months of opening the account. Points can be redeemed for cash, gift card, or products offered by Chase. If you want to exchange them for cash, the 50,000 points have a value of $500. For travel, this card offers several benefits such as the opportunity to earn 2 points on each purchase you make. For example, you can buy plane tickets, eat in restaurants or reserve a hotel room and receive points. Also, if you are not traveling, you can earn a point on each purchase you make. On the other hand, with the Chase credit card you will not have to pay for the fees for transactions outside the United States. For example, if you make a purchase of $5,000 abroad, you would not have to pay $150 for transaction fees. The credit card offers insurance for luggage and plane tickets. If your flight is canceled or you get sick, you could receive a refund of up to $10,000 per person or $20,000 per trip.
3. Wells Fargo Propel American Express: The Wells Fargo Propel American Express Card offers an additional 30,000 reward points when you spend $3,000 on purchases in the first 3 months. The 30,000 points are worth $300 in cash. You can earn 3 points when you buy meals in restaurants, gasoline, public transport, flights, hotels, etc. The card has no annual fee and there is no limit on the points you can earn. Likewise, you can buy tickets to concerts, plays and special events before they go on sale with the Wells Fargo Propel American Express credit card. Moreover, you will not have to pay foreign currency conversion fees. The credit card offers cell phone protection by helping you protect your cell phone from damage or theft. During the first year you will not have to pay interest, then the interest on the card can vary from 14.74% to 27.24% APR.
4. Bank of America Travel Rewards: With the Bank of America Travel Rewards credit card you can earn 1.5 in points for every dollar you spend, anywhere. You will not have to pay an annual fee or foreign transaction fees. The points you earn can be used to pay for flights, hotels, vacation packages, cruises, car rentals or baggage charges. If, during the first 90 days of opening the account, you spend at least $1,000 in purchases, you will be able to obtain a bonus of 25,000 points, which can be exchanged for a credit, in the statement of account, of $ 250 to apply to travel purchases. The Bank of America Travel Rewards credit card offers 0% interest for the first 12 billing cycles for purchases. Then a variable interest of 17.24% at 25.24% APR will be applied.
5. Barclaycard Arrival Plus World Elite Mastercard: By obtaining the Barclaycard Arrival Plus World Elite Mastercard credit card and spending 5,000 in the first 90 days you can get a bonus of 70,000 miles. The miles can be exchanged for $700 for travel expenses or offers. In the same way, you can earn 2 miles on each purchase you make, the miles you earn can be exchanged for gift cards, travel credit and merchandise. The card has an annual fee of $ 89, has no foreign transaction fees and during the first year you will not have to pay interest on balance transfers. After the first year the interest could range from 18.24% to 25.24% APR, depending on your credit score.
Our Concluding Thoughts
A travel credit card is the best option for people who are planning a trip or vacation in their life. These are all the reasons why we feel this way. The frequent flyer miles and rewards you can earn with your card allow you to book more flights, hotels, restaurants, etc., without spending any of your own money. With most cards offering 0% APR on purchases and balance transfers during introductory periods, it’s also easier to build up some savings before booking that next big trip via cash advances. And lastly, if anything goes wrong while traveling abroad (i.e., lost luggage), many companies have 24/7 customer service lines where they can help resolve issues quickly so there isn’t any additional stress involved. If you’re planning a trip or vacation in the near future, then we think that it’s time to get yourself a travel credit card. There are so many reasons why this is an excellent choice for your financial situation and will make traveling much easier on you. We hope these points have shed some light on what makes getting a travel credit card such an excellent decision! The best decision for your wallet and peace of mind is to use one with no annual fee, so you can avoid paying unnecessary fees on top of already expensive flights. A few companies have been mentioned in this blog post, but there are many others out there as well. If you want more information about which company would be best for your needs or if you just want some advice from someone who knows what they’re talking about, our team at Credit Karma is ready and waiting!