Travel credit cards feature lucrative travel rewards bonuses and miles that can be earned simply for shifting your everyday spending to these cards. Though anyone of consequence in the personal finance sector will tell you that credit cards are tools to be used carefully and to be wary of high-interest credit cards, they can also be powerful assets for your life.
The Top Line
- It’s important to use credit cards carefully, regardless of what benefits come along with them.
- Credit cards can be powerful tools that can help you travel the world for free or at reduced rates.
- There are a variety of travel rewards credit cards available to you.
- Knowing the benefits of travel rewards credit cards is essential to using them correctly and selecting the right card for you.
Benefits of Travel Credit Cards
There are many benefits that you will be able to enjoy when you use a travel credit card to its full potential. We’re going to walk you through these benefits and show you how a travel credit card can be helpful in more ways than one.
Travel Rewards Miles
Most people, when applying for travel credit cards, are focused on the travel miles that they often provide to the user. These can be highly beneficial and provide you with a way to travel to your favorite destinations for free or for a severely discounted rate. You may also use miles to be upgraded in your frequent flyer status.
Hotel and Rental Benefits
The benefits of travel rewards credit cards are certainly not limited to travel rewards miles through airlines. In fact, they can help with multiple aspects of travel. You can also redeem points, in many cases, for vehicle rentals and hotel rooms.
Some credit cards carry other travel-related benefits such as fees being waived for various services like checked bag fees when flying or Global Entry application fees. Credit cards to these things to further entice you to use their card. You would benefit from becoming familiar with these various, minor rewards.
If you aren’t able or willing to travel, you could always redeem your accrued benefits for another reward. These can include things like cash, magazine subscriptions, and gift cards. Generally, the best value for your points is to redeem them for airline miles, but sometimes this is not always possible.
Restrictions of Travel Credit Cards
Travel rewards credit cards can be a great tool, but they also have their limitations. Here are some of the factors that could prevent you from enjoying the full range of benefits that travel rewards cards have to offer.
Quantity of Cards
Travel rewards credit cards could reject your application if you have applied for too many cards in the past 24 months. Generally, those that have opened more than five credit cards in the past 24 months are rejected.
Another factor that could limit your ability to be approved for a travel rewards credit card is your credit history. If you have a lower credit score or a less-than-perfect credit history, then your application for a credit card that offers travel rewards could easily be rejected. You should always make sure that you are in good credit standing before you apply.