KEY POINTS
- Find the appropriate welcome promotion that aligns with a spending threshold you can reach.
- Determine the level of significance associated with obtaining access to airport lounges.
- Ensure that you are not being charged a higher fee without justification.
Whether you are a frequent traveler who goes abroad several times annually or someone who takes occasional trips once in a while, credit card that offers rewards for travel It can be beneficial to keep in your wallet.
Numerous travel reward credit cards provide cost-saving benefits that reduce the expenses of air travel, such as complimentary checked luggage and reduced rates on onboard purchases. Additionally, these cards are recognized for offering bonus points or miles on travel expenditures, which could be applicable to. eating establishments and meals .
However, when applying for a travel rewards credit card, it is crucial to ensure that it aligns well with your needs. Here’s a guide on how to achieve that.
Ensure that the introductory offer is achievable.
A lot of credit cards include a sign-up bonus You may receive a significant amount of points or miles by signing up for a new credit card. However, it is important to ensure that the welcome offer is one that you can easily take advantage of before selecting the card.
The minimum amount you need to spend in order to qualify for a sign-up bonus can differ between different credit cards. While some cards may require you to spend just $500 or $1,000, others may have a significantly higher spending threshold.
Another important factor to take into account is the timeframe given. Certain credit cards provide a three-month window to fulfill the spending requirement for the introductory offer, whereas others offer a timeframe of four months or even longer.
Regardless, ensure that the deal you are pursuing is one that you can achieve without accumulating debt. It may not be beneficial to go after a $300 sign-up bonus if it means carrying a $3,000 balance for an extended period, accumulating high interest charges, and possibly damaging your credit score.
Determine the significance of having access to the lounge.
Certain travel reward credit cards provide complimentary access to airport lounges as a bonus feature. While this may appear to be a great advantage, it’s important to note that a majority of these credit cards charge a high annual fee. Therefore, if you only travel by air infrequently, it might not be cost-effective to pay for this benefit.
Additionally, it is important to keep in mind that you typically have the choice to purchase lounge access on the day of your flight. Furthermore, the price of a day pass could be more affordable than the yearly fee for your travel card.
Ensure that you will recover your payment.
It is not guaranteed that your travel rewards credit card will have an annual fee. However, a majority of these cards do have one. is The common practice is due to the increased level of benefits they typically provide.
It can be beneficial to pay an annual fee for a credit card, whether it’s for travel or other purposes. In some cases, you can earn back the fee through statement credits or cash back rewards. Before getting a new card, it’s important to calculate whether you will be able to recover the fee through rewards.
It’s important to keep in mind that the annual fees for credit cards can vary widely, ranging from $95 to several hundred dollars. For instance, a $295 yearly fee might be justifiable if it helps you earn $1,000 in cash back more efficiently compared to another card, or if it includes $400 in statement credits for services you frequently use, such as hotel accommodations and ride-hailing services. However, it’s crucial to ensure that you are receiving sufficient value for the fee you are paying.
Owning a travel rewards credit card can be beneficial, regardless of how frequently you travel. Follow these suggestions to choose a card that will suit your needs effectively.
