Key takeaways
- Travel credit cards can offer significant rewards and benefits for travelers, like complimentary checked baggage, airport lounge access, bonus points and elite status.
- Some travel cards come with high annual fees, but you can offset the fee if you earn rewards, travel often and tap into your benefits.
- If you don’t travel often or are still building your credit score, a travel credit may not be the right fit.
Whether you’re an experienced globetrotter or just entering your travel era, you can go even further with rewards from a travel credit card.
The annual fees for many travel cards — which can get pricey — might make you wonder if a travel credit card is worth it. But earning points or miles toward flights and hotels, plus other card benefits, could sway your decision.
We’ll explore the pros and cons of travel credit cards, so you can find the right choice to fuel your next vacation.
Are travel cards worth it?
Travel cards require some strategy to maximize their value. To determine if a travel card is a good fit for you, consider the following pros and cons:
Pros:
– Earn points or miles on travel purchases
– Access to travel benefits
– Flexible rewards redemption
– Authorized user perks
– Welcome bonuses
Cons:
– High annual fees
– Difficulty maximizing value
– High credit score requirements
– Rewards value fluctuations
– High APRs
When deciding whether to get a travel card, weigh these factors to determine if the benefits outweigh the costs. Given that the Delta Sky Club membership costs $695 per year, it may be a worthwhile investment for frequent Delta travelers to consider getting this card. Additionally, here are some other travel card benefits to take into account:
– Elite status: Some travel cards offer perks like free room upgrades, late checkout, meal credits, and more, without the need to achieve elite status with airlines or hotels.
– Global Entry or TSA PreCheck: Many travel credit cards provide a statement credit to cover the application fee for these programs, allowing you to skip lines at airports.
– Annual travel credit: Some cards offer annual travel statement credits that can help offset high annual fees on premium travel cards.
– Travel insurance: Many credit cards, including travel cards, offer travel insurance coverage for things like trip cancellation and delayed baggage.
It’s also important to consider other factors like flexible rewards redemption, authorized user perks, and welcome bonuses when choosing a travel credit card. However, it’s essential to be aware of the potential cons, such as high annual fees, before applying for a travel card. Looking for the perfect travel credit card to suit your lifestyle and financial needs? Let’s break down the key aspects to consider before diving into the world of travel rewards.
For instance, the Chase Sapphire Preferred® Card is a top choice for beginners with a modest $95 annual fee and fantastic perks. On the other hand, the Capital One VentureOne Rewards Credit Card offers similar benefits without an annual fee.
While some may feel they aren’t maximizing their rewards potential, like Ariana Arghandewal who regrets not fully utilizing her Hilton Honors American Express Aspire Credit Card, there are valuable perks to consider. For Ariana, maintaining Hilton Diamond status and receiving an annual free weekend night award justify the $450 annual fee.
However, navigating the world of travel rewards can be a challenge. It requires meticulous research and organization to ensure you’re getting the most out of your card. If you don’t travel frequently, a travel card may not be worth it as you won’t fully benefit from the rewards and bonuses.
Additionally, it’s essential to have a good credit score, typically ranging from 670 to 850, to qualify for most travel credit cards. Building a solid credit history by responsibly managing multiple credit cards, like Franklin with an impressive Experian credit score of 848, can help improve your creditworthiness.
Fluctuations in rewards value and high APRs are other factors to consider. Loyalty programs can change, affecting the value of your points and miles, while high APRs on unpaid balances can negate the benefits of travel rewards. It’s crucial to pay off your balance in full each month to make the most of your travel card.
Before applying for a travel credit card, assess your spending habits, travel goals, and financial situation. If you travel frequently, pay off your balance monthly, and can maximize the card’s benefits, a travel card could be a perfect fit. However, if budgeting is a challenge, you rarely travel, or annual fees are a deterrent, a travel card may not be the best option.
Ultimately, the best travel credit card for you depends on your individual circumstances and goals. By carefully evaluating your needs and preferences, you can find a travel card that enhances your travel experiences and rewards you for your spending.