If you love to travel, whether for work or pleasure, you’ll probably know exactly how it feels to want to save some money, while at the same time enjoying the best possible travel experience. Even though strategic planning and discounts can help you to cut costs, many people overlook just how useful a travel credit card can be if you’re trying to save cash.
Many travel credit cards come with welcome perks, stay vouchers, travel memberships, loyalty programs, and reward points. Others have complimentary lounge access, travel insurance, and a host of other benefits that you can enjoy, just by using the cards.
So, should you get a travel credit card? Here are a few reasons why it might benefit you to do so, although you should always carry out your own independent research to ascertain whether it is the right decision for you. Never lend from a credit provider unless you can be confident you’ll be able to pay it back when the time comes.
Better exchange rates
When travelling abroad, you might find that you get better exchange rates with a travel credit card, depending which card you choose. Generally speaking, the best travel cards will almost always champion over exchanging foreign currency, according to the likes of Money Saving Expert.
In addition, if you make payments in the local currency when using a credit card abroad, rather than getting them to do the sterling conversion for you, you may even be exempt from having to pay a credit card fee to your provider (although the ATM itself may impose a charge, so always watch-out for that!)
Where cash withdrawals are concerned, many credit card providers do charge for this service, but there are some out there which are fee-free.
Even though you might’ve saved enough money for your trip, you’ll also need to consider your expenditure if you really want to travel for less. One way of doing this is to look at the exchange rates offered by different merchants; after all, they could increase the amount of money you’ll end up spending on your purchases.
Earn air miles and reward points
You can end up earning miles and reward points if you use your travel credit card to pay for travel expenses. Some travel credit cards even allow users to transfer their points to airlines and hotels, like Virgin Atlantic, for example.
Collect points, and use them to pay for expenses incurred when booking airlines or hotels, instead of using money. While it may take a while to earn a free return flight, you could be surprised at just how quickly you could qualify for a seat upgrade or lounge access, for example.
Other credit cards allow you to redeem the points you have earned for different types of expenses.
However, you need to ensure that you have a good credit score before applying for a travel credit card. Most card issuing companies will require a score of about 700 apparently, so work towards achieving that, or higher.
Travel insurance
Not only can travel credit cards offer the kinds of benefits outlined above, but they might also provide travel protection benefits.
For instance, some travel credit card providers reimburse users for things like lost luggage, and help out with unexpected payments in case of an emergency. Others offer travel insurance – something that comes in extremely handy when experiencing a travel emergency.
You might also benefit from travel accident insurance if you’ll be using a travel credit card. Different credit cards provide different types of insurance for travellers. Ensure you know what you’ll be getting when applying for a travel credit card.
Earn cashback rewards
Cashback rewards enable you to earn back a fixed percentage or figure of the cost spent on a travel credit card, in the case of some providers. If, for instance, you spend £2,000 paying for a hotel stay and the cashback deal was 10%, you’d receive £200 back.
Depending on the travel credit card you’re using, you can redeem cashback rewards as statement credits to offset a percentage of your monthly costs. However, if you prefer, you can also have the money mailed to you by cheque, or deposited into your bank account.
Some of the other unique perks you could qualify for if you get a travel credit card include complimentary drinks, snacks and meals, hotel room upgrades, reimbursement for canceled flights, access to premium airport lounges, free checked bags, and more.
Tip: Avoid applying for multiple travel credit cards
As discussed, you can stand to reap a lot of benefits if you use a travel credit card when traveling. For some, it can be tempting to apply for multiple travel credit cards at once.
However, this can end up damaging your credit score. When you apply for a credit card, the issuing company does a hard inquiry or search for them to get your new credit application rating. If this happens too many times in a short period, your credit score will be negatively affected.
If you’re considering signing up for a travel credit card, don’t do anything until you’ve compared different card issuing companies to ensure that you’re getting the best deal. Not all travel credit cards offer the benefits discussed above. Always read the small print!
Do you use travel credit cards? Share your recommendations below.