Are you the kind of person whose wallet is overflowing with credit cards? If so, you might want to consider adding one more card to your collection: a travel credit card.
What is a travel card?
A travel credit card is a type of credit card whose rewards can be used to buy plane tickets. They make the most sense for people who are willing to put in some work up front, but after that, you can enjoy miles or points on your purchases.
What are the pros and cons of a travel rewards card?
The following are the main benefits of drawbacks that you should consider when deciding whether or not to use a travel card.
- You will earn points on your daily spending and travel purchases which makes it possible for you to rack up rewards even in if you don’t use your card that frequently.
- The best travel credit card issuers have excellent travel protection. This includes things like trip cancellation/interruption insurance and rental car coverage.
- Travel cards will typically offer extra perks such as luggage protection, hotel-room upgrades, entertainment and dining discounts, as well as lounge access at certain airports.
- Most travel cards offer great flexibility when it comes to points redemption.
- There are lots of top-tier travel cards that offer huge introductory bonuses when you sign up.
- Your travel card may come with high annual fees.
- Some cards offer rewards that are only good for certain airlines.
- There are some cards that charge foreign transaction fees
- Depending on the travel card that you want to sign up for, a high credit score might be required.
A travel rewards credit card can be a great way to accumulate points on your daily spending and make it easy to rack up enough for a free plane ticket every year. However, the cons of a travel card include high annual fees and limited earning potential, so it’s important to do your research before signing up.