TRAVEL REWARDS CREDIT CARDS
Credit cards are omnipresent in modern day society. People use them to pay for everything from cars to groceries to sticks of gum. The US is a credit card loving country and you’ve probably seen all the ads for bonuses if you sign up with this or that credit card be advertised by some celebrity. With so many cards to choose from, it’s hard to know which one is actually good for travel and which one is not. Travel credit cards offer a great opportunity to earn points that can be redeemed for airfares, hotels or cold hard cash. In the race to get customers, credit card issuing companies partner with various travel brands (or just simply offer their own card) that entice consumers with sign up bonuses, loyalty points, special discounts, and more. Their desire to get you, the consumer, is really your gain. By milking the system, you can get tons of air tickets, hotel rooms, vacations, and even cash back.
There is no perfect travel card – they all offer different benefits that fit different people. So first know there is no one perfect card – there is only the perfect card for YOU!
Look for cards which offer special perks:
All of these travel credit cards offer great perks. Many will give you special elite loyalty status or other extra perks. I want cards without foreign transaction fees, checked baggage, priority boarding, nights, and much more. It’s not just about just getting miles; it’s about what else comes with the card that makes my life easier.
Low annual fees:
No one likes paying annual fees for credit cards. Many of the fees for company branded credit cards range from $50-$95 per year. I pay an annual fee. For those who travel a lot and fly a lot, I think it is worth it to get a card with a fee. Fee-based cards tend to give you a better rewards scheme, where you can accumulate points faster, get better access to services and special offers, and get better travel protection.
Look out for foreign transaction fees
The majority of credit cards charge a 3% fee when you use them overseas. Credit cards are great to use because you get a good exchange rate from them but if you are paying a fee every time you use the card, then it doesn’t become as good. The simplest card for avoiding foreign fees is the Capital One Venture Card. There is no yearly fee but there’s also no rewards structure.
What if an individual has poor credit?
Many travel rewards cards are only available to those with a high credit score, and if you have a low score (650 or less), you may find yourself being declined often and limited in your options.
- Go to AnnualCreditReport.com and get a copy of your credit report. This site lets you know what your credit score is so you can see what areas you need to work on.
- Dispute any incorrect information on your credit report with the credit reporting agencies—Experian, Equifax, and Transunion. Don’t let mistakes bring you down.
- Get a secured credit card. These cards require you to put down a cash deposit, think of it like a pre-paid credit card (or a credit-card-in-training). If you decide to put $500 USD in your secured credit card, you can use up to $500 USD each month and then pay it off. Spending and paying off your balance in full each month is a good way to build up your trustworthiness. A good secured card will have automatic reporting to the three major credit bureaus. This will help you build good credit history and increase your score.
- Become an additional cardholder (authorized user) on the card of someone else with good credit—you will inherit their score. It’s like they’re vouching for you. This can instantly improve your score.
- Pay all current bills on time and don’t get into more debt (and move your current debt to low- or zero-interest cards.
- The Chase Sapphire Preferred Card has one of the largest signup bonuses in the industry as well as great long-term rewards for travel and dining. The number of ways you can redeem points, including transferring at equal value to many partners is simply unmatched by any card.
- While the Chase Sapphire Preferred Card is often deemed superior due to its many transfer partners and affiliation with the Chase Ultimate Rewards program, the Barclaycard Arrival Plus™ World Elite MasterCard offers a different kind of flexibility that is equally popular with travel rewards enthusiasts. With this card, you earn flexible “travel credit” that is redeemable for any type of travel for one cent per point. In other words, earning 40,000 points with the card allows you to book any type of travel worth $400 – then completely erase the purchase from your account by redeeming your rewards.
- A new addition to this list is the BankAmericard Travel Rewards card. This card really packs a punch for a card with no annual fee. In my initial research I was really on the hunt for huge sign up bonuses that I could capitalize on, so I kind of missed the long term value locked in this card. The 20,000 bonus point offer is weak compared to other cards, but earning 1.5 points per dollar on everyday spending more than makes up for it. This is the earnings power that other card companies easily charge an annual fee for. All other purchases made through the Travel Center earn 3 points per dollar with no limitations, so you can book hotels and rent cars without limit and earn big time.
- The Discover it Miles card offers a unique opportunity for anyone who wants to earn a lot of rewards with minimum hassle. With this card, you earn an unlimited 1.5 Miles on all purchases without an annual fee and with no categories or exclusions to worry about.
- With the Southwest Airlines Rapid Rewards® Premier Credit Card, you’ll earn points you can redeem for flights within the United States and to select destinations in the Caribbean. In addition, you will experience extra benefits like checked bags, which can save up to $200 for a family of four.
