Are Travel Credit Cards Worth It?

Travel credit cards have become increasingly popular among frequent travelers and occasional vacationers alike due to the amount of benefits they offer. From rewarding redeemable travel points to providing exclusive access to airport lounges, these cards promise people that they will be given the means to enhance their travel experience as long as they use a travel credit card. However, with annual fees and specific spending requirements, the question has to be asked: Are travel credit cards worth it? 

What Are Travel Credit Cards?

Travel credit cards are credit cards specifically designed to offer you perks and rewards that are tailored to travelers from your everyday purchases. These rewards typically come in the form of points or miles that can be redeemed for flights, hotel stays, car rentals, and other travel-related expenses. Depending on what kind of travel credit card you get, you may be provided access to premium travel-specific amenities that usually cost extra. This includes amenities and services such as airport lounge access, travelers insurance, trip delay/cancellation insurance, and waived baggage fees.   

The Benefits of Travel Credit Cards

Travel credit cards offer people a range of benefits that can enhance the travel experience in ways you couldn’t have imagined. As they can allow you to build up points from your everyday purchases, you can potentially redeem those points for free flights, hotel stays, and other travel-related expenses that would have cost you quite a bit of money. 

While the earning rate and redemption value will vary card by card, each travel card offers a variety of bonuses and perks that can be suited to your travel goals. Some of the most common benefits that travel credit cards include:

• Signup Bonuses 
• Airport Lounge Access
• Traveler Insurance
• No Foreign Transaction Fees
• Priority Boarding
• Free Checked Bags 
• Room Upgrades
• Cashback

Costs and Drawbacks of Travel Credit Cards

While the benefits of travel credit cards are very enticing to those who want to travel more in their lives, there are also some hidden costs and potential drawbacks that not a lot of people realize. Depending on which travel credit card you sign up for, you may become subject to annual fees that can range anywhere between $100 to $500. It is also important to note that some of these travel credit cards have high interest rates and require people to spend a certain amount in order to access the perks and benefits the card offers. 

Furthermore, some of these travel credit cards have reward restrictions and/or a complex redemption process that makes it difficult for people to redeem their awards when they want to travel. From blackout dates to point expiration, these limitations can make it challenging for people to properly utilize their awards at their convenience and make them reconsider if travel credit cards are worth the hassle. 

Is it a good idea to get a credit card to Travel?

Getting a credit card specifically for traveling can be a smart move if you intend on traveling frequently and to take advantage of the associated benefits that come with it. It can also be a great way to build up your credit history and improve your credit score because it will incentivize you to use your credit card frequently and responsibly so you can gain and utilize as many points as you can get. 

However, it is important to consider the potential downsides such as high interest rates and annual fees. Depending on what travel credit card you get, it can potentially affect your spending habits and if you are not careful, it may have a more detrimental impact on your finances than what they are worth. While the allure of free flights, free checked bags, and airport lounge access is definitely tempting, it is vital that you have a solid understanding of your finances and what travel credit card you sign up for. 

Is a Travel Credit Card Better Than Cash?

Generally speaking, a travel credit card is a safer and more convenient option to use especially if you are frequently shopping and eating at restaurants when you are traveling. However, there are situations where having some cash on hand is beneficial. For example, small vendors, tips, and transportation services in some countries may only accept cash, so it is wise to carry a small amount of local currency for such instances.

However, it is important to note that depending on where you travel to, you may not have the option to use your travel credit card and will have to rely on cash. As many countries are still heavily reliant on using cash, you may be limited in your ability to use your travel credit card and may be forced to save it for any emergencies that may arise. While this isn’t a particularly bad option, it serves as an important reminder to research where you are going to be traveling to and find out whether you need to pull out cash or not. 

Are Travel Credit Cards Worth The Hassle?

Travel credit cards can be a valuable tool for both first-time and frequent travelers. As daily purchases on a travel credit card can allow users to build up a stockpile of points and miles they can trade in for rewards and benefits, a travel credit card can definitely enhance the travel experience and help people save money in the process. 

However, it is important for those interested to do their research on which travel credit card is best suited to their finances, travel goals, and spending habits in order to make the best and fullest use of the rewards and perks that these cards can offer. While it can be tempting to sign up for a variety of travel credit cards, it is vital that you have an understanding of your finances and have a plan before you start booking flights to countries that you have never been to before.