Traveling is expensive if you pay for everything in cash. Many travelers use travel points cards, but some of them also use travel points cards. These cards come with rewards in the form of points and miles that can be used towards travel expenses. You might be able to book a business class flight, stay at a 5-star hotel, or your next rental car with points instead of cash.
It's perhaps no surprise that travel cards are popular with consumers. According to the Motley Fool Ascent Credit Card Survey, nearly one-third (32%) of Americans own a credit card. However, it is not a match for everyone. Here are signs it's worth getting a travel card in 2024.
I plan to travel at least once this year
As you might imagine, travel cards are perfect for people who travel frequently. The more you travel, the more value you get from perks and other travel perks.
That doesn't mean you need to travel all the time (though there's a lot you can get out of a travel card if you do). If you know that he will be traveling at least once this year, a travel card can help you spend less on your trip.
One way you can save big on travel cards is by taking advantage of sign-up bonuses. Many travel cards have valuable sign-up bonuses, some of which can be worth anywhere from $500 to $750 in travel. Apply for a travel card and earn a sign-up bonus that you can use to pay for your next vacation.
Do you always fly Delta because you live near a Delta hub? Or do you usually stay at Hilton hotels because you like their facilities and loyalty program? If you're loyal to a brand and choose it often, opening a credit card with that brand may give you special benefits.
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Airline credit cards typically include perks like free checked baggage, priority check-in and boarding, and discounts on in-flight sales. Some luxury options also include access to airport lounges through membership in the airline's lounge program. You can also earn frequent flyer miles when you make purchases using your airline card.
Using a hotel credit card often allows you to earn elite status in the hotel's loyalty program. This is free silver, gold, or platinum status, to name a few examples. Many hotels include free night certificates that can be used at luxury properties. And just like airline cards, hotel cards allow you to earn points at that hotel, which you can later redeem for free nights.
I don't mind the learning curve
Travel credit cards can be a little complicated. There are often many benefits, and that's usually a good thing. But it also means you need to stay on top of those benefits to get the most value out of your card. This can be difficult, especially for cards that come with credits for certain types of travel purchases or have benefits that require activation to be used.
It also takes time to learn how to use your card's travel benefits. Redemption options vary depending on the card you have. Depending on your card, you'll have a variety of options, including transferring your points to airlines, hotels, or directly redeeming them for travel purchases. Also, the value you get often depends on how you use your points.
If you're open to learning about travel card benefits and rewards programs, you can save a lot of money on your travels. However, if you want to keep it simple and save time, a credit card with cash back is a better option.
Is it okay to pay the annual fee?
Most travel cards have an annual fee. The amount varies depending on the card. Some fees are in the range of less than $100. Others are much more expensive, ranging from $250 to $695, and offer more benefits. Generally, if you can use most of the travel card's features, you can outweigh the cost of the annual fee.
However, if you're only interested in a card with no annual fee, you'll probably want a cash back card. There are travel cards with no annual fee, but they don't offer many benefits and are not very profitable. To get a quality travel card, expect to pay at least $70 to $100 per year. Remember, you'll likely save far more than the cost of the trip.
Travel cards can be a great perk for the right cardholder. If you travel frequently and don't mind study periods or annual fees, this type of credit card could be a good return.
Warning: The highest cash back card currently confirmed has an introductory APR of 0% through 2025
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