3 Pitfalls to Avoid When Selecting a Travel Credit Card

Of all the credit cards out there, travel credit cards are some of the most complex. Companies have spent decades trying to simplify the programs, but there are still a lot of details involved in the issuing and use of these cards. For starters, most travel credit cards require an annual fee. For the casual traveler, that may not be worthwhile. For someone who’s always on the go, however, that small fee could save them thousands in travel expenses over a year.

The usefulness of any credit card, including a travel card, starts with making sure that you know what you’re getting. Here’s what to avoid when selecting your perfect travel credit card.

Fees and Charges

You can’t completely avoid fees and charges with a travel credit card, but you can reduce them. Do this by shopping around to compare the different cards that are available based on your credit rating and financial situation. For starters, most travel credit cards have an annual fee that ranges from as low as $75 to more than $600 in some cases.

It’s not necessarily about avoiding this fee, but about making sure that it’s worth the investment. If you don’t spend a lot on travel each year, a card with a higher annual fee might not be worth the investment. However, for someone who spends thousands on travel and flies thousands of miles, the annual fee might be worth every penny for all the free travel rewards they get. 

Redemption Limits and Blackouts

Travel cards have been notorious for their rewards, but also for their limits and date blackouts. There are always going to be some type of limits placed on travel rewards programs. It’s about finding the limits that are reasonable and making sure that you’re actually getting rewards that you can use. Blackout dates are usually found with miles cards, as many providers won’t allow travel during peak times.

The good news is that today’s credit card providers are more than willing to provide transparent information about the terms and conditions of their rewards programs, including what’s excluded, limitations and reward exclusions, and more. Use this information wisely. 

Getting the Wrong Kind of Travel Rewards

This might seem like a no-brainer, but it’s really important to see what kind of rewards come with the travel credit cards you’re considering. Some are more obvious, like all the cards with “Miles” in their name (denoting that you can rack up travel miles and cash them in for free travel). Others may be a bit more complex to figure out. Make sure that you’re not getting a card with some hard-to-use points system, either.

Travel rewards credit cards are great, but only when you take the time to find the right one for your needs. Of course, the same can be said for credit cards in general. Travel cards usually come in one of three forms:

·  Miles/airline cards

·  Hotel cards

·  General travel credit cards

Compare the options and see what’s going to be best for your travel desires and spending needs. General cards usually have lower fees and fewer restrictions, but may make it harder to earn rewards. 

The Bottom Line

Travel credit card selection isn’t rocket science. It does take a little bit of diligence and research, however, if you are going to make the best choice. A good travel credit card can give you a lifetime of enjoyment, so it’s important to choose carefully. While you’re shopping, check out all the rewards and perks that you have to choose from, and keep these tips in mind to ensure that you get the perfect fit.