Choosing the Best Travel Credit Card
Everyone loves free stuff! Why not travel for free? Choosing the best travel credit cards can get you free hotels, upgrades, flights, gift cards and other great freebies. There are a lot of travel credit cards to choose from. This post will hopefully help you choose the right card for you.
A lot of people out there practice travel hacking to rack up tons of points and miles which can be used for free hotel rooms, free flights, free upgrades, and free car rentals. FREE FREE FREE!! You don’t even have to spend any money outside of your normal spending to take advantage of all these freebies.
Types of Travel Credit Cards
Choosing the best travel credit card depends on what you are looking for. Let’s jump right in and talk about the 3 types of cards.
- Transferable Point Credit Cards
The way these cards work is that each company partners with various airlines and/or hotel groups so that you can transfer the points that you have racked up. American Express, Capital One, Citibank, and Chase all have transferable point cards.
- Co-Branded Airline/Hotel Credit Cards
Most major airline companies have their own cards. American Airlines, Delta, Southwest, and United, all have some very nice reward programs. The points you earn through these cards are used to redeem flights with that particular airline. These cards lack the flexibility that transferable cards offer but come with some benefits like free checked bags, priority boarding, and lounge access.
There are a few hotel cards as well. Some good ones are Hilton, Hyatt, IHG (Intercontinental Hotel Group), and Marriott. These cards work the same as airline credit cards and if you pair these cards with your airline cards you could get a free flight and a free stay.
- Cashback Cards
With these cards you can earn cashback on your purchases. Most cash back cards give you 2% cash back. Look for the ones that also offer a sign-up bonus. You could get around $200 when approved. Some of these cards can earn you 5% cash back on specific purchases. These cards can be used to help pay for tours or car rentals.
Picking The Best Card
When deciding which travel reward credit card works for you make sure you compare the rewards programs and choose the one that best suits your needs. Keep in mind that there isn’t one card to cover everything you might need. But there are a few key features to keep in mind.
- A nice welcome bonus
- The ease of earning points based on your spending habits.
- Easy point redemption programs
- Annual fees
There are some common benefits to help make your choice easier. Just make sure you read the fine print.
Sign-up Bonus
The bigger the bonus the better. Many cards will offer at least 25,000 miles bonus at sign-up and some go up much higher. But be aware of the stipulations. You usually have to charge a certain amount in a specific time frame to earn the bonus. Be sure you can meet the spending limits and don’t spend money you don’t have. An easy way to avoid this is to only charge things you already spend money on. This would include utilities, groceries, gas, cell phone bills, etc. You may also want to check if this bonus is flexible. Are there blackout dates? Does a bigger bonus mean more in annual fees? These fees can range from $30 to over $500. Most waive the annual fee for your first year.
Point or Mile Per Dollar
This is usually an even trade. One point/mile per dollar you spend. It could take quite a bit of time to rack up points or miles. Some cards are double or triple the points/miles per dollar spent. And some offer more for specific purchases like restaurants, flights, etc. Always check to see if the points/miles have an expiration date. Choose the travel credit card that helps you rack up the most.
Waived Foreign Transaction Fees
Some cards charge you expensive transaction fees when you use your card abroad. These fees may apply to withdrawals as well. Everytime you use your card abroad the currency must be converted in order to process the payment. Choose a card that doesn’t charge the usual 2-5% fee for every single transaction.
So in Conclusion…
Make sure you do your homework before applying. I know it can be a long process but if you just start applying for all cards to see which one you qualify for then this could hurt your credit score. This is not a long term impact on your score. And if you plan on opening more than one card account I recommend waiting 90 days in between.
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