Travel credit cards are a great way to earn points or miles that can be used for travel. While many of these cards offer rewards on purchases from various categories (gas, groceries, etc.), their most valuable feature is their ability to get you significant savings on hotels and flights compared with other forms of payment. A few benefits of having a credit card include the following:
Points or miles can be utilized for travel.
Travel credit cards offer many benefits, but one of the most valuable is the ability to redeem points or miles for travel.
Here’s how it works: you earn points or miles by making purchases with your card, and then you can use those points or miles to pay off future travel expenses. This could be anything from flights, and hotel stays to car rentals and even Uber rides!
The great thing about this type of rewards program is that all these expenses are tax-free, so you don’t have to worry about paying more out of pocket than usual just because they’re being paid for with rewards instead of cash.
Cards often have large sign-up bonuses.
You should first know that most travel rewards credit cards have sign-up bonuses. These bonuses can be worth hundreds of dollars, and they’re often based on spending. But not all of them are. Sometimes you’ll get a free flight or hotel stay just for signing up—no spending required! And many cards will let you redeem your points for travel-related expenses like flights or hotels, so it’s always worth checking whether the card you’re considering offers any bonus.
Many cards waive foreign transaction fees.
Many credit cards waive foreign transaction fees, which can be a major pain. The problem is that many credit card companies charge you a fee whenever you use your card overseas. These fees can get expensive if you’re traveling abroad frequently, so it’s worth checking to see if your travel credit card will waive these charges. If not, consider switching to one that does!
You could get extra insurance for trips.
If you’re traveling for business, you’ll be paying for your trip with the help of a company credit card. If this is the case, check to see if the travel credit card you’ve selected comes with any extra insurance benefits.
These days, many cards offer some type of travel assistance that can cover lost baggage, trip cancellation and interruption, emergency medical expenses and more. This coverage can help you avoid significant losses in case something goes wrong during your trip—and it’s often available at no extra cost or for very low premiums. Travel insurance typically applies only to trips taken within one year after opening an account (or within other specified time limits).
SoFi experts suggest, “Using a credit card responsibly, it’s crucial to make on-time payments of at least the minimum payment due each billing cycle.”
You’ll be able to get discounted rates on car rentals and hotels.
You’ll get discounted rates on car rentals and hotels with a travel credit card. You can also get free upgrades at some hotels and resorts and complimentary nights at some of the most popular destinations in the world. Some cards even offer bonus points when you book airfare, so it’s worth checking those out if you plan to fly somewhere soon!