A Guide to Travel Credit Cards for Beginners

Travel credit cards are one of the groups of rewards credit cards that offer plenty of incentives for users. In exchange for your regular use of the card, you can earn miles or rewards points that can be used for travel expenses like flights, hotels, rental cars, and more. With the right card, you could save thousands of dollars on travel expenses and build your credit at the same time.

Of course, there are several different cards out there to choose from and they are not all created equally. Here’s what you need to know.

What are Travel Credit Cards?

Travel credit cards are one of three categories of rewards cards that you can find today. Within this category, you will find airline credit cards, hotel cards, and flexible travel rewards cards with a more general approach. You can earn points, dollars, or miles that can go toward your travel expenses in the future.

There are two main types of travel cards: co-branded cards and general travel credit cards.

Some examples include:

·  Capital One Venture X Rewards

·  Chase Sapphire Preferred

·  United Club Infinite Card

·  Hilton Honors Aspire Card (Amex)

·  The World of Hyatt credit card

·  Delta SkyMiles American Express

·  JetBlue Plus Card

·  Capital One QuicksilverOne Rewards

·  American Express Gold

·  Credit One Bank Wander Card

These cards range in their offerings for travel rewards, as well as their credit requirements. You can also find dozens of other options out there if these don’t suit your needs.

What to Look for in a Travel Credit Card

The first thing that you’ll want to consider is the annual fee. Unlike many credit cards, travel rewards cards almost always have some type of annual fee. They do, however, offer great discounts in return for that charge. Fees could range from $100 per year to more than $600, depending on the card and its requirements. For those who spend a lot on travel, however, the cost of the card may be minimal, at best.

You will also want to consider the terms of the travel rewards, as well as the interest rate that you pay for purchases. If you sign up for a travel credit card that has a complicated rewards program, you won’t be as likely to try to take advantage of those rewards. And of course, if you choose a card with a high interest rate, it could become too costly to use regularly, causing you to lose more rewards.

Take advantage of introductory offers and sign-up bonuses when you get your card. Some programs offer impressive perks just for enrolling and being approved for a credit card in the first place.

How to Choose

Although everyone’s needs are different, here are some tips and best practices to ensure that you choose the right travel credit card for your needs.

·  Make sure it meets your travel needs

·  Consider whether it’s brand-specific or general

·  Think about what kind of rewards you want (miles, cash, hotel stays, etc.)

·  Compare the rewards programs from similar cards

·  Take the time to read the terms and conditions

·  Consider the annual fee and whether that’s within your means

For example, if you often fly American Airlines, you wouldn’t get a Delta SkyMiles card because then you’d have to change airlines and it would become a whole thing. If you are looking for hotel rewards, you want to make sure that those are offered. Ultimately, it’s about getting to know the options so that you can choose what’s best for you. With these things in mind, you’ll be on your way to making the most of travel credit cards in no time.