The majority of us like to travel. In fact in a recent survey, 87% of respondents stated they plan on taking a trip in the near future. It gives us something to look forward to, and helps relieve stress by giving us hope and comfort. But let’s face it, travelling can be very expensive. From the costs of flights, to insurances, hotels, car rentals and more, what started as a fun little idea to get away from it all can quickly turn into a nightmare for your budget. Thankfully there is something that can help with that; travel rewards credit cards.
Not all travel rewards cards are equal, and you will need to shop around to find the one that is right for you, but from sign-up bonuses, to travel insurance, free flights and more, the right card is out there for you that can help bring your travel budget back into line. Here are some of the perks you should pay attention to.
Sign-up Bonus
The first thing to pay attention to when choosing a travel rewards credit card is the sign-up bonus. In most cases they are hard not to see because it’s what credit card providers use to grab your attention. Some offer free flights right out of the gate, while others offer bonus points only after you’ve made a minimum spend on the card within a specified period of time. Always read the fine print to find out as much as you can about the bonuses before signing up, because some of them may require you to plan months ahead before going on your trip if you plan on using the extras for it. In order to meet the requirements of the sign-up bonus, you may need to adjust your spending habits and use the card more than you normally would. Whatever you do though, make sure you don’t miss out on them because they are typically the quickest way to accumulate your rewards.
Pay Attention To How You Earn Points
Every travel rewards credit card is different, but most of them offer ways to earn more points based on your spending habits. Some give extra points for using the card to book your airfare or hotel rooms, while some give more for gas purchases, grocery and bill payments. Pay close attention to the details and use the card as needed to earn the most points.
Explore The Travel Benefits
Most travel rewards credit cards do more than help you earn discounted and free flights, they also offer upgrades that can greatly increase your travel experience. Read over the benefits before deciding on which card is good for you, because every card offers different things. You can find benefits such as:
- Free Hotel and Flight Upgrades
- Priority Boarding
- Private Lounge Access
- Concierge Services
- Travel Protection and Insurances
- Rental Car Discounts
- Free Checked Bags
- And Much More
Not only do these benefits make your vacation more enjoyable, but it also makes it less costly and can help lower your stress levels even further.
No Foreign Transaction Fees
Nothing is worse than returning home from a vacation and finding out that all your charges to your credit card has fees added fees to them because you were out of the country. Most of us don’t carry cash when we travel anymore, and having the added expense of foreign transaction fees on top of the exchange rate is frustrating and expensive. Most credit cards charge an average of 3% for this, but many travel rewards credit cards waive that fee. While 3% may not seem like a lot, it can quickly add up. Not all travel rewards credit cards have this benefit either, so if you are an international traveler make sure to look for it.
Can You Justify The Annual Fee?
Once you’ve looked over all the perks and benefits, you need to make sure the annual fee for the credit card is worth it in the long run for you. Most providers will waive the fee for the first year as an initial bonus, but after that you will be paying anywhere between $95 to $450 a year to keep it. While $450 may seem like a lot, keep in mind, usually with higher fees comes more rewards. Weigh the fees against the perks, and if you plan on travelling a lot and taking advantage of the benefits, the more expensive card is probably right for you. If you aren’t using the benefits, or travel infrequently, the lower costing one is probably the better idea.