Planning To Get A Travel Credit Card? Few Things You Must Watch Out For

By Adhil Shetty | October 26, 2017

While choosing a travel Credit Card, it makes sense to compare a few cards, their perks, and fees. In this article, we discuss some crucial points like these.

Planning To Buy A Travel Credit Card? Few Things You Must Watch Out For

If you are a frequent traveller, then getting a good travel Credit Card should be your top priority. But with dozens of lucrative offers such as discounts, cashbacks, and reward points flooding the Credit Card market, it becomes difficult to choose one. However, there are a few guidelines you must follow before you choose your travel Credit Card. Remember, a good travel Credit Card can help you earn a few free flights and can save a lot of money for you as well. So, which travel Credit Card should you go for?

Let us take a look at a few things that you should keep in mind when you set out to purchase a travel Credit Card:

Sign-up Bonus: Always go for a travel Credit Card that offers a huge sign-up bonus as it can help you earn free flights. You get entitled to a sign-up bonus if you make a single purchase or meet a minimum spending requirement during a certain time period. Different cards offer a different range of bonuses depending on the minimum spending done in that time frame. It can help you earn 1x – 5x points per dollar spent depending on the card.

Low Minimum Spending: This sign-up bonus will be accrued to you only if you meet the minimum spending requirement in a particular time frame. It is always wise to go for a lower minimum spending which you can manage along with your day-to-day expenses. The best travel Credit Card, of course, is the one that gives you a bonus with just one single purchase. However, it does not mean that you should not go for higher minimum spending if you can meet the requirements as it will fetch you higher and substantial rewards. But you can start small and not strain yourself to meet the minimum spending requirement.

Cards Offering Specific Category Spending Bonus: Travel Credit Cards offer you extra points if you spend in certain specific categories such as dining at restaurants, or office spending, or airfare. Besides, if it is a branded travel Credit Card, then you can earn extra points if you spend money with that particular brand. You also earn extra points if you spend at specific retailers that the card has listed. These extra points will reward you in the long run.

Extra Features Or Perks: Every Credit Card company comes up with unique features or perks to lure customers. They will offer free nights, priority boarding, zero foreign transaction fees, among others. They will also give you elite loyalty status to tempt you to buy the card. Buy the card which you think has the best perk that will meet your travel requirements.

Annual Fee: It’s obvious you have to pay a certain Annual Fee to avail the benefits of travel Credit Cards. You might get tempted to go for the card that has the lowest or zero annual fee. But do keep in mind that fees are charged for offering you services and perks that you may need during travel. A fee-based card will offer you a better rewards scheme that will help you collect points faster, giving you better services and offers in return.

Foreign Transaction Fee: You are also charged a foreign transaction fee when you travel overseas or abroad and use your Credit Card. But if you hardly travel abroad, then you can opt for a card with zero foreign transaction fee. But it might also reduce your ability to earn points on your spending and hence, will deprive you of the offers and perks.

It is best to go for a travel Credit Card that best meets your requirements.  It thus makes sense to compare a few cards, their perk, and fees before you select one.

BankBazaar is a leading online marketplace in India that helps consumers compare and apply for Credit Card, Personal Loan, Home Loan, Car Loan and insurance.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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