Gone are the days when people used to travel abroad for business, education, medical treatments and personal visits. Today, we see many people planning for an overseas vacation every now and then. When traveling abroad, carrying money and managing expenses is not as easy as it is in our country. There are various ways people use to carry money abroad. It includes cash, international debit or Credit Cards, prepaid cards, travel cards and others.
Of late, travel credit cards have gained popularity due to their ease of use and the benefits offered. By allowing multi-currency transactions, the cards have become a hot favorite among globetrotters. With almost every bank offering the cards, it is a little confusing to choose the best one. To make it easy for you, here is a quick guide to what makes a best travel credit card. You can use it to be aware of the important things you need to look for while choosing a travel credit card and apply for the one that suits your needs.
Welcome bonus: Even before talking about the welcome bonus, one thing you need to know about travel credit cards is that unlike regular credit cards, travel credit cards do not offer reward points. Instead, they allow cardholders to accrue air miles. It can be redeemed for flight tickets, hotel booking, and other travel-related transactions.
The welcome bonus, also called sign-up bonus, is offered on most of the travel cards. The best are those which offer air miles, flight tickets or coupons for flight or room booking, as part of their welcome bonus programme.
Miles per spend: Travel credit cards offer air miles instead of reward points. Hence, you need to consider the number of miles offered per spend on various credit cards. Choosing the one that offers the maximum number of miles would allow you to earn more number of miles on a single transaction.
Banks allow you to accrue miles on both airline and non-airline transactions. However, less weightage would be given to non-airline transactions. If you’re lucky enough you may come across a card that offers equal weightage on both transactions. Pick that one to get more miles in short time.
Airlines: Some travel credit cards restrict the card usage to one specific domestic airline and its international partner. It’s better to avoid such cards and go for those that allow you to book on any airline.
Maximum validity period: No matter how many miles you get per spend, the validity of miles plays a key role. If a travel credit card offers a huge number of air miles but a shorter validity period, you cannot reap the benefits of the card. Choose a travel credit card that provides no expiry miles and allows you to redeem the same at any point in time.
Transaction fee and other charges: An important factor to consider while comparing various travel credit cards is the transaction fee and other charges related to foreign transactions. Almost every bank charges a transaction fee. Hence, you need to choose the one that offers the best rate.
Lounge access: It would be an added advantage for you if your travel credit card offers complimentary lounge access at airports. As the cards are specifically meant for travelers, many cards offer the feature. Hence, choose a card that provides you with the most number of free lounge visits at airports.
Insurance and fraud protection: Will be using a travel credit card at foreign locations? Choose a card that offers protection against fraudulent transactions. It would protect you in times of credit card scams. Further, you can also consider the cards that come with travel insurance coverage compared to the ones that don’t offer one.
Travel credit cards also offer complimentary access to clubs, airport lounges, and hotels. Whenever you are applying for a credit card make sure you go through all the benefits offered by the card instead of focusing only on one aspect.
