Using a travel-specific credit card to make payments during a trip is very convenient. You do not have to carry cash everywhere and even keep converting currency when you visit abroad. Besides, it comes with several benefits, like free checked baggage, priority entry into planes, and annual hotel discounts, to name but a few.
There are numerous options, but choosing the right travel credit card can be hectic! In this guide, we shall dive deep into the various types of credit cards and how to choose the right card choice depending on your preferences and their flexibility. If you want a great experience using a travel credit card during your next trip, keep reading this article! You will definitely learn something.
Types of Credit Cards
There are several types of credit cards; here is a narrowed list of the most preferred cards.
- Reward Cards: They offer cashback and reward points that you can redeem for travel-related expenses. An annual fee is applied, but they don't have foreign transaction fees; when using the card abroad, there are no extra charges.
- Cash back cards: They reward you with a fraction of your expenses. It is ideal for people who do not carry large balances and want to earn extra cash from their expenses since they do not come with an annual fee and charge low-interest rates.
- Balance transfer cards: For an introductory period (usually 6 to 18 months), they allow the transfer of debt from one card to another at no interest as long as you spend within the required amount repayable within that period.
- Airline miles cards: These are customized credit cards given by some airlines. Clients using these cards will likely get extra flight miles for free or perks like free lounge access during a flight on specific carriers. However, they come with higher APRs (Annual Percentage Rates) than other cards!
Factors to Consider when Choosing a Credit Card
As stated earlier, choosing the right credit card can be difficult. Consider the following factors to help you make a quick and best option for you;
- Annual fees. Most travel cards come with different annual fees. It ranges from $0 to $400 and more. Therefore, it is only worth getting one if you maximize the benefits of a particular card.
- Reward programs: Reward bonuses offered by banks with private reward programs are not as good as those provided by third parties like Visa and American Express. However, they have no foreign transaction fee or applicable charges when accessing the services via mobile app. Besides, it is easier to keep track of your expenditure.
- Interest rates. A credit card with a low APR can be suitable if you want to clear your balance monthly. However, if you wish to carry over the balance for a couple of months and continue earning points on purchases made, consider one with a 0% APR introductory period.
Pro Tip!
New offers are unveiled each time, and even though some might seem like a great deal at first, they may be unstainable or unsuitable for you in the long run. Before making any choice, take note of the basic requirements. Check out some of the Best Credit Cards for Travelers https://thriftyfinanceblog.blogspot.com/2023/03/the-5-best-credit-cards-for-travel.html.
Using Your Credit Card While Travelling
Before you travel, you should be mindful of any inconveniences you might encounter during the trip with the credit card. Therefore, do the following before the trip.
- First, confirm with your credit card company in advance. When planning to travel, notify your credit card company of your plans to ensure no issues with processing while abroad (for instance, if an alternative address is required).
- Replace magnetic stripe cards with chip and PIN cards. Are convenient where there is power outrage for swiping or dipping at ATMs. Additionally, they are more secure in case of fraud.
Best Practices for Securing Your Credit Card
As you travel, keep track of your spending to avoid any fraud. To evade that, take note of the following:
- Choose a solid and secure password. Your password should not be too short or common that one can easily predict. Always use a longer password of about eight digits containing both letters and numbers. But of course, it should be easy to remember!
- Hide your transactions at ATMs. This is to avoid exposing your password or the amount you withdraw.
- Use two-factor authentication if one tries to swipe your credit card or change your password.
- Keep your eye on your card always.
Final Thought
You can have a great experience when traveling using a credit card. Taking note of all the tips above can be very helpful during the trip. If it has been a while or if you're a first-time applicant for a travel credit card, it is crucial to learn more about different requirements and the services each credit card provides and remember the legal requirement to help you make the right choice.