If you are looking to save money on your travel and keep costs down while you are on your trip, then using a travel credit card or debit card can be the perfect way to achieve this.
Travel cards will usually be a lot more beneficial when booking travel than personal finance cards and give you access to a host of travel-related perks.
Capital One Venture X
Best for Travel
What is a Travel Credit Card?
A travel credit card has been specifically created to make it cheaper and easier for you to spend as you travel and when booking with airlines and hotels. Card issuers will reward you with points or air miles for spending using the card and give you access to discounted products or services with partners.
A travel credit card and travel rewards card can also help you cut costs by rewarding you with free checked bags, travel insurance, and even a free night in a hotel! Depending on the card you choose, you may be able to save hundreds of dollars each year on travel and related costs!
Whether you travel frequently for business or once or twice a year, these cards can help you to earn points and miles towards travel purchases which are well worth the annual fees.
Below we will talk you through everything you need to know about how using a travel credit card can save you money and how to use these cards to make your travel financial decisions with confidence.
Why is It Better to Use a Travel Rewards Credit Card?
Earn Big Discounts Right Away
Most travel credit cards will reward you with thousands of air miles and rewards points simply for hitting the minimum spend requirements during the first few months of opening your account.
These bonus points can be worth more than you have paid for the annual fee and will give you a substantial discount on your next ticket purchase.
For example, the Platinum Card from American Express will reward you with 80,000 membership rewards points when you spend $6,000 using your card within the first 6 months of opening your account.
Earn Travel Discounts with Everyday Spending
Travel credit card providers will reward you for using your card to buy your groceries, dining, and purchases in other eligible categories. This means that you can easily build up discounts on your future travel simply by spending money you would be spending anyway.
Chase Sapphire Preferred cardholders will reward you with 5 Chase Ultimate Rewards points for each dollar you spend on travel. And you'll also earn 3 points per dollar on spending on groceries, dining, and takeout.
Rewards your Travel Purchases
One of the best things about using a travel credit card is that you will be earning discounts towards your future travel when purchasing your current travel and accommodation.
For example, a Capital One Venture X Rewards credit card will give you up to $300 statement credit for bookings you make using your card on Capital One Travel.
No Foreign Transaction Fees
Because these cards have been created specifically for travelers, they often come with no foreign transaction fees. This will allow you to save a substantial amount each year if you travel abroad often.
Venture Rewards Card from Capital One offers cardholders no fees on foreign transactions and will also reward you with 5x air miles on flights and hotels booked using the Capital One travel website.
Access Travel Related Discounts & Perks
If you travel frequently, then a travel credit card can help you to save money on related costs such as travel insurance, Global Entry membership, checked bags, and car rentals.
How to Make the Most of Your Travel Credit Card?
Before you apply for and start using your travel credit card, you need to make sure that you have done your research and picked the right card for you.
The offers we have listed are accurate as of using a credit card currently but may vary over time at the advertiser's disclosure. Always do your research to make sure the same terms apply to the offers listed on this page currently. You should also make sure:
Make Sure You Pay Your Credit Card Bills Back Every Month.
Failing to do so could see you fall into debt, and your credit score and history being damaged. The goal here is to save money, not damage your financial status.
Check Where Your Points Are Most Valuable.
You may find that your rewards points are worth more when you transfer them to one partner over another, so do your research to make sure you are getting the most value from each point.
Use Your Card with Partners to Earn More Points.
You may find that switching where you buy your groceries or dine out may help you to build up more points towards your travel quicker.
Improve your Credit Score.
Most premium credit cards require a good to excellent credit score for approval. And the higher your score is the more likely you will be able to qualify for cards with the most beneficial offers and discounts.
Citi / AAdvantage Platinum World Elite Mastercard cardholders will get a $125 discount on flights with American Airlines once hitting minimum spending requirements. They also get a free checked bag, preferred boarding, and a 255 discount on inflight purchases on AA flights.
Takeaway - Travel Card vs Credit Card: Which One Should You Use for Your Next Trip?
Providers have designed travel credit cards to reward travel spending and make traveling easier on the wallets of those using them. For this reason, you should always consider applying for a travel credit card if you want to make savings on your trips in the future.
When you spend using the travel credit cards mentioned above, you'll be able to build up air miles with your everyday spending and even earn discounts towards future travel when buying your current flights and hotel stays!
You may also be able to access perks such as free lounge access, discounts on Global Entry membership, and elite status and upgrades with partners. All of this makes applying for a travel rewards card a smart choice for most travelers.
Find The Best Airline Credit Card For Beginners
Choosing an airline credit card is more complicated than it may first seem. Sure, there are lots of options available and many offer great perks and upgrades. But the best card for you will differ from that of someone living in a different part of the country.