The millennial generation is traveling more than any generation before it. Seeing the world is a big priority for them. Many would even rather travel than buy a home.
If you’ve got the travel bug yourself, you may be itching to hop on a plane or get out on the road. But traveling the world can be a tad costly. There are a few different ways to circumnavigate such costs, but none are as easy or efficient as having a travel rewards card.
A travel rewards card can offer you a number of benefits on your next trip. It can help you save quite a bit of money. But with so many credit cards available, how do you pick the best travel card?
Read on, and we’ll walk you through exactly how to pick a credit card that will make your travel dreams a reality.
What Do Travel Reward Cards Offer?
If you love to travel but haven’t had a travel card yet, you’ll be kicking yourself once you hear about all they can do for you.
The biggest benefit of a travel credit card is the rewards that they offer. For every dollar spent, a travel reward card will offer a certain amount of miles or points that you can use towards your travel plans. On average, you could earn up to $1,000 worth of rewards off a travel credit card in a given year.
The best travel credit cards also provide the user with a number of perks.
These can include early boarding, discounts on hotels, and other big travel benefits. You may also be able to receive waived baggage fees or even emergency travel assistance. The BMO air miles business card, for example, offers a number of different travel insurance options.
Many travel reward cards also offer to waive their annual fee in your first year of use, meaning bigger savings for the user.
Applying for a travel rewards card can be easy. If you have a good credit history and regularly pay your other card balances in full you should have no trouble getting approved for a travel rewards card.
But with so many travel reward cards available on the market, which do you go with? Below are some factors to consider when selecting the best travel credit card for you.
Sign Up Bonuses
Credit card companies want to attract new cardholders. They spend big money on advertising, garner celebrity endorsements, and pre-approve hundreds and thousands of Americans a year.
They want you to sign up for a card. When you’re selecting which travel card to sign up for, remember to use this to your advantage.
Many credit card companies offer big sign up bonuses to new cardholders. These bonuses can be especially helpful to travel cardholders, as a bonus can jump-start your mileage and get you immediately closer to a free flight.
Sign up bonuses are usually rewarded for using your new card in a specific window of time. Getting a large bonus will be reliant on you spending a certain amount within a few weeks or months of receiving your card.
Travel card bonuses can be anywhere from the modest 25,000 points to as high as 100,000.
These bonuses are an amazing way to get free flights for very little work. So when signing up for a new card, make sure to closely evaluate a card’s sign up bonus policy. And don’t sign up for a card that doesn’t offer one.
Reasonable Spending Minimums
Most credit cards for travel require a minimum amount of spending over the course of a month. These minimums are in place to ensure you aren’t solely signing up to receive and use some bonus points.
Minimum spending requirements vary from card to card, but you’ll want to leap for one that feels like it matches your normal financial situation. It can be easy to find yourself in a situation where you’re spending more just to be able to reach the amount needed to receive bonuses.
At this point, you’re no longer actually reaping the benefits of card membership, as you’re spending money that you otherwise wouldn’t be.
Selecting a travel credit card with a low minimum spending requirement is the easiest way to avoid this situation. A lower amount will allow you to hit the requirement simply by following your normal shopping habits.
No Foreign Transfer Fees
The importance of this particular trait will depend on where exactly you intend on traveling. If you’re like many, and dream of exploring overseas, checking in on foreign transaction fees can be essential in your decision process.
Credit cards can be amazing to use in a foreign country because they offer the best possible exchange rate.
But some companies will charge a processing fee everytime you use your card in a foreign country. If spending time outside of the US is something you might be doing a lot, you won’t want to snag a travel card that has foreign transfer fees. In the modern era, most companies have done away with such fees– but you should always check and make sure before signing up!
Extra Bonus Points
Many of the best credit cards for travel offer you opportunities to earn extra points if you shop in particular places. Some offer rewards based on specific retailers. For example, you may get three times the points for shopping on Amazon than you would at other locations.
Others break it down more categorically. They offer extra points when you pay for gas, groceries, or at restaurants. Picking a card that offers these extra points can help you reach your travel goals much quicker.
How To Pick A Credit Card With Travel Rewards
Seeing the world is one of the most rewarding experiences a person of any age can have. There are so many different cultures and experiences out there, just waiting for us to meet them.
Knowing how to pick a credit card that will support such experiences is incredibly important. With a good travel credit card in your pocket, adventures around the country and the globe can become easier and more affordable. A good travel credit card can be a real life changer.
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