Credit cards, in today’s day and age, are one of the most popular financial tools available to consumers. Over and above the convenience of payment, there are many credit card benefits to be had as well. One of the main benefits for travellers is that they don’t need to carry cash, reducing the risk of losing it, which can cause different issues on the journey.
Apart from reducing the hassle of carrying cash, this payment card also offers several benefits. So, read on to learn more about them.
Five reasons why credit cards are the best for travellers
So here are five reasons which show why credit cards are the best option for travellers.
- Privileged rewards and services programs
Many travelling credit cards have great rewards and service programs on offer. The reward could be in the form of either cash or points. These points can be used for rebates on further purchases, discounts on ticket and hotel bookings, gift cards etc. These points can also be used for insurance benefits or in the form of extended purchase warranties. If you buy anything overseas, you can get insured for mishaps like any type of damage or loss due to theft. Frequent flyers also get benefits on parking at the airport, seat selection, baggage checks, private airport lounge access, and whatnot. You could also get a free hotel stay or a sponsored trip with certain offers.
2. Helps in getting a better exchange rate for your currency
Many credit card companies help in getting currency converted. Most of these credit card issuers don’t charge any fees for the process. Still, have a look into your credit card’s policies before you plan any sort of trip, especially overseas. It could help you save a lot on hourly hire van and hourly car rental!
3. Comprehensive travel and rental insurance
If you travel multiple times yearly, owning credit cards is ideal. This is because the credit card company offers travel insurance for every trip you make. Travel insurance helps you to cover losses related to interrupted, cancelled, or delayed flights. It also gives coverage for lost baggage or medical issues. Some credit card companies also offer rental insurance for cars or scooters when you travel.
4. Flexible online transactions
Currently, flight booking, hotel booking, train/metro booking, etc., for travel is made online, this applies to national and international travel. When travelling to foreign countries, this booking can make your life easier and the journey more convenient. But if you are a credit card holder, you have another advantage. As mentioned above, credit card companies offer benefits like booking privileges and payment conveniences to cardholders. This way, you can ensure a better travelling experience for you and your loved ones.
5. Helps to be prepared for any situation
Traveller credit cards are considered among the best ways to make payments abroad. Various countries worldwide have a no-cash policy, in such cases, it helps. Also, you can skip the hassle of finding an ATM.
Points to check before applying for a travel credit card
Here are some things you should keep in mind before you apply for a travel credit card. They are:
- Credit score and eligibility
Travel credit cards require a high credit score. So you need to check your eligibility. Whether you fall in the desired credit score bracket range for application is decided by several factors. How many loans have you applied for? Have you ever defaulted on a payment? What amount have you taken as a loan, and how many loans? The healthier your credit score, the higher your chances are for approval.
- Joining and renewal fees
Travel credit cards come with joining and renewal fees, which you need to consider to avoid difficulties. However, you get many benefits compared to standard credit cards. Make sure you find out what benefits you can get from your travel credit card before deciding.
- Rewards system
You need to understand a few things here. How are you awarded the points? How are the air miles accumulated? What is the reward redemption rate, i.e. how many times can you redeem these points? How long are the air miles and points or related offers valid? You should only apply once you have checked everything and find it to your liking.
- Ancillary benefits and travel-related perks
Typically, most companies offer benefits which may or may not be related to travel. You could get renewal fee waivers, or you could even get dining discounts on your trips abroad. There are also fuel surcharge waivers. Every card has different benefits.
- Foreign transaction fees
Using your credit card internationally while travelling? Foreign transaction fees (or Forex Markup Fees) of the credit card need to be considered. This fee is levied on transactions via an international merchant or overseas bank payments and is charged by banks for processing currency conversion costs. So, check the details before applying.
Credit cards can provide a lot of conveniences for travellers, especially those on trips frequently. Those flying regularly need to know how to use credit card points for flying or any other purchase they make. But you also have to be extra careful while handling your credit card overseas. Make sure you don’t get involved in some cyber frauds and get your resources drained.
Hopefully, this brief guide on the advantages of a travel credit card has provided an idea of what it is and how it can benefit you. For more details, you can always contact the bank’s representative that has provided the credit card.