How to get the most out of your travel credit card

If you're planning a vacation this summer,you're worried about rising travel costs. 23} – From expensive flights and hotels to entertainment and gasoline. 

A travel credit card is a valuable option to help you get through big vacation purchases. Some travel cards offer valuable perks on items such as airline tickets, hotel stays, and cash back on travel purchases. 

Here's what you need to know about travel credit cards, how they work, and how to get the most out of your travel rewards and save money. Plus,how to track your finances with online toolsand discover more ways to save money.

What is a Travel Rewards Credit Card?

Travel Rewards credit cards let you earn rewards and discounts for your travels. These loyalty cards may be of value if they allow you to earn points or miles for purchases you've already made.

Like any other rewards credit card, you earn "points" or "miles" with your purchase. While airlines typically let you earn miles by signing up for a credit card and joining a loyalty program, hotel credit cards and popular travel reward cards let you pay with points. Either currency can be redeemed for travel awards.

When comparing travel credit cards, check to see if the card has transferable points. The points are not limited to one, they can be used for travel on many airlines and hotels. Accumulate Reward Points with your daily purchases and then transfer them to partners that best fit your plan or offer the best value.

Does the credit card have an annual fee?

Many travel reward cards have an annual fee, but that alone doesn't automatically break the deal. It's wise to compare the value of credit card annual fees and card perks. Some cards offer coveted extras like checked luggage, priority boarding, and airport lounge access that can add value well beyond the card's annual fee.

4 Travel Credit Cards

Choose from a variety of credit cards to best suit your lifestyle and spending habits. 

Below are the most common types of travel credit cards:

1. Generic travel cards: Generic travel credit cards can earn flexible income. Points towards daily spending and purchases in specific categories such as travel and dining. Some travel reward cards offer additional benefits such as waiving foreign transaction fees or skipping airport security lines.
2. Airline Credit Cards: Airline credit cards offer specific airline miles. This is a good option if you are biased towards a particular chain. Benefits vary by card issuer, but you may earn benefits such as free flights, flight upgrades, and priority seating.
3. Hotel Credit Cards: Hotel Cards allow you to pay with points that can be used at partner hotel properties. Benefits may include complimentary hotel stays and room upgrades. Some cards even offer free nights after your account anniversary.
4. Flat-Rate Credit Cards: Flat-Rate Travel Reward Cards are great when you want a card that rewards you with specific points for each purchase and has no categories to track.

What are the benefits of a travel credit card?

Card issuers update their travel rewards programs with new features and benefits. When purchasing a new travel credit card, you may encounter some or all of the following travel card benefits:

• Airport Lounge Access: Busy Airports can be hectic and nerve-wracking. Relaxing in a partner airport lounge for a few minutes before your flight may be what your doctor has ordered.
• Baggage Delayed or Lost Insurance: This insurance covers the cost of toiletries and clothing if your baggage is delayed or lost.
• Better Exchange Rates: Credit cards may offer better exchange rates than ATMs or foreign currency stores.
• No transaction fees: Some credit card issuers waive foreign transaction fees (usually around 3% of the purchase price) for purchases made abroad in other currencies .
• Car Rental Insurance: When you're traveling, you can benefit from car rental insurance available with some Travel Rewards cards. If your credit card provides rental car insurance, it is usually secondary coverage against damage or theft. This coverage does not become effective until paid by your personal auto insurance company.
• Travel Experience Credits: Some of the best travel card benefits directly enhance the travel experience, such as airport lounge access, priority boarding and hotel credits for on-site restaurants and spas. is.
• Travel Insurance: Get peace of mind with benefits like travel delay, cancellation and lost luggage insurance.
• TSA PreCheck / Global Entry Benefits: Most travel cards now offer TSA PreCheck or Global Entry benefits, allowing you to be screened at a TSA checkpoint without paying the standard application fee. Speed ​​up the process.
• Welcome Bonuses: Many credit card issuers offer generous welcome bonuses to encourage people to apply for credit cards. 

How to get the most out of your Travel Rewards

Here are some common ways to get the most out of your Travel Rewards points.

• Use credit cards for large purchases: Credit cards allow you to accumulate points that can be applied to travel plans, but debit cards No points or miles are earned.
• Combine your spending habits with the right card: Many Travel Rewards credit cards offer higher rewards for spending in certain categories, so choose one that fits your lifestyle. Look for cards that offer generous rewards in categories. For example, if you regularly take Uber or Lyft, consider purchasing a travel credit card that offers 10x points on rideshare services.
• Take advantage of bonuses: Travel cards are typically generous sign-ups earned by meeting certain spending thresholds within the first few months of opening an account Offer bonuses. In addition, many card issuers will send you e-mail promotions featuring opportunities to earn bonus points. For example, you may earn tens of thousands of points just for referring a friend to a cardholder.
• Avoid Balance: Earning travel rewards is exciting. Especially when the benefits are big, like free flights. However, paying interest fees reduces or even eliminates the value of the rewards earned.

Travel credit cards are worth it.

The value of a travel credit card depends on the value and use of its benefits.

If you travel infrequently or don't take advantage of perks like airport lounge access or hotel spa treatments, travel rewards won't help you much. On the other hand, if you're an avid traveler looking to rack up miles for free flights and other perks, a travel rewards card might make sense.

New Travel Before signing up for a rewards credit card, we recommend that you calculate an estimate of the rewards benefits you may use in any given year. Compare that number to the card's annual fee to determine if it's the right travel credit card for you.