Insider Tips, Reward Strategies & Cards to Avoid
Travel credit cards have become an essential tool in the modern traveler’s arsenal. Whether you’re an occasional vacationer or a frequent flyer, choosing the right card can help you maximize benefits while reducing travel-related costs. In this article, we discuss how to choose the best travel credit card, outline mistakes to avoid when using one and highlight some of the worst credit cards currently available.
What to Consider When Getting a Travel Credit Card
Big Sign-Up Bonus
A generous sign-up bonus can provide a significant boost to your rewards balance right from the start. Many travel credit cards offer large bonus points or miles if you spend a specified amount within the first few months of opening your account. This bonus can often be redeemed for a free flight, hotel stay or a travel package deal.
Decide Between a General or Co-Branded Card
General travel credit cards offer flexibility to choose from a variety of airlines or hotel chains, making them a good fit for travelers who don’t have a loyalty program preference. Meanwhile, co-branded cards are typically allied with a specific airline or hotel chain, offering specialized benefits such as priority boarding, free checked bags or upgrades at the partner’s properties.
If you prefer an adaptable rewards system and want the freedom to choose among different travel providers, a general travel card may suit you better. If loyalty and enhanced perks with a particular brand are more appealing, then opting for a co-branded card could be advantageous.
Choose Which Perks Matter the Most
Different travel cards provide different perks and it’s important to analyze which benefits align with your travel habits. Key perks may include airport lounge access, travel insurance, no foreign transaction fees, rental car insurance and concierge services. Prioritize the perks that will bring you the most value based on how frequently you travel and your style of travel.
Look for the Best Rewards Categories
Examine the rewards structure of a travel credit card, paying special attention to the annual percentage return on travel-related purchases. Some cards offer higher rewards for spending on airfare, hotels, dining and even everyday purchases like groceries or gas, while others might have a flat rewards rate for all purchases.
Figure Out How to Minimize Fees
Travel credit cards often come with a variety of fees including annual fees, foreign transaction fees and sometimes even high-interest rates if balances are carried forward. Look for cards that waive foreign transaction fees or those that offer flexible redemption options.
Mistakes to Avoid When Using a Travel Credit Card
Not Spending Enough
One common mistake is failing to meet the spending threshold required to unlock the sign-up bonus. If the spend requirement is unrealistic based on your budget, this can lead to frustration.
Redeeming Points at a Low Value
Another pitfall is failing to redeem points at their maximum potential. Some travelers may hastily exchange points for gift cards or merchandise that don’t render as high a value in comparison to redeeming them for flights, hotels or travel packages.
Losing Your Points
Points can expire if the credit card issuer enforces an expiration policy and you’re not actively using or transferring them. Keeping track of your rewards expiration policy and making timely redemptions or transfers is essential.
Not Transferring Points
Many travel credit cards allow points transfer to airline or hotel loyalty programs, often at favorable ratios. Not taking advantage of these transfer opportunities may mean that you are locked into using points on a card’s proprietary rewards system which might offer lower redemption values.
Not Using the Benefits
A common mistake is neglecting the additional travel benefits that come with the card. Whether it’s discounted lounge access, travel insurance or rental car perks, not utilizing these benefits is akin to leaving money on the table.
Worst Credit Cards
Not all credit cards are created equal. Here are some of the worst cards available that should be avoided.
CorTrust Bank Visa Business Card
This card should be avoided because it often features a convoluted rewards structure and high fees that outweigh the benefits. Limited redemption options, coupled with frequent policy changes, leave business owners disappointed and hinder their ability to maximize travel rewards.
Community Bank Maximum Rewards
Community Bank Maximum Rewards is infamous for its low reward rates relative to its annual fees and its rigid point expiration policy. For travelers seeking flexibility with rewards and redemptions, the lackluster benefits and limited travel perks make this card a poor choice.
Amalgamated Bank Maximum Rewards
Amalgamated Bank Maximum Rewards offers rewards that fall below industry standards and presents complex terms that diminish any appealing sign-up bonus. Users have found that it lacks competitive travel benefits.
Mastercard Gold Card
The Mastercard Gold Card charges exorbitant annual fees while offering benefits that don’t compare well to other premium travel cards. Additionally, the rewards scheme is rigid, giving insufficient return on travel expenses.
First Premier Bank Mastercard
The First Premier Bank Mastercard is often seen as one of the worst due to its confusing reward structure and poorly defined travel benefits. It comes with high fees and little to no support for effective points redemption or cardholder travel protection.
Final Notes
Choosing the right travel credit card can elevate your travel experiences. By thoroughly assessing the perks and potential pitfalls, you can tailor your selection to suit your travel lifestyle and turn everyday spending into unforgettable adventures.