Are Travel Credit Cards Really Worth It?

Travel credit cards are one of the most common types of credit cards available today. These cards have several perks that make them great for people who travel frequently, including some with the ability to accrue miles that can be redeemed for airline tickets and more. These cards can be great to help offset travel costs when you use them on things you’re already paying for, but you have to make sure that you choose the right ones. 

Travel Cards and Fees

Many travel rewards credit cards require an annual fee. Typical fees range from $95 to $200 per year, although some cards can be as high as $700 per year. If you have excellent credit (800+ credit score), you can generally find cards that don’t have any fees or that have lower fees. Make sure that there aren’t any hidden charges or fees related to redeeming your travel rewards, either.

This is important with any credit card selection, but increasingly so with travel cards because they are more notorious for charging fees for their use. The good news is that you can find a lot of cards without these extra costs if you know where to look. And for many travelers, the cost is worth it. 

Types of Travel Credit Cards

Whether it’s worthwhile will also depend on which type of travel credit card you’re considering. For example, if you’re not a frequent flyer, you might not choose a Delta SkyMiles card with an annual fee. If, however, you stay in a lot of hotels and like the idea of occasional statement credits, a card like the Capital One Venture X Rewards Card could be a good choice. Typically, there are three categories of travel cards:

1. General travel credit cards

2. Branded/co-branded airline cards

3. Co-branded hotel credit cards

Typically, co-branded cards will only be redeemable for their specific rewards, but some include rewards programs that expand to include other travel-related purchases and expenses. Again, however, the details vary from one card to the next. 

Terms and Conditions

The biggest concern for consumers, besides the cost of travel credit cards, is whether they’re actually usable. That is, there are so many credit cards that are full of stipulations, limitations, blackout dates, and other exceptions or obstacles to using the rewards that you’ve acquired. That essentially makes the card useless. Therefore, you’ll want to make sure that you check out the program, including how rewards are redeemed so that you know you’re getting a quality card.

The best travel credit cards will have upfront information and transparent details about their fees, terms and conditions, interest rates, exclusions and limitations, and other details of use. They should be more than willing to explain everything to you and have a customer service team to that end. 

Are Travel Cards Worth the Cost?

Ultimately, this is a question that everyone will have to answer for themselves. For the right traveler, even a $500 or $600 annual fee could be worth the investment. After all, when they end up saving $3,000 on travel expenses over a year just by using their rewards card, it proves its value. For others, the cost is not worth how much they’d use the card, if at all.

Plus, some cards also include extras like trip insurance, rental coverage and roadside assistance, baggage delay coverage, etc. to help protect you while you’re using your rewards to travel the world. If you’re a frequent traveler and looking to maximize your credit card usage, travel credit cards could be the ideal choice.