Should You Get a Travel Credit Card?

Credit Card
Photo by Avery Evans on Unsplash

We’ve all seen those commercials for travel credit cards–you know, the ones that promise rewards like airline miles or hotel stays with every purchase. While the idea of such perks may sound enticing, travel credit cards aren’t without certain drawbacks. If you’re in the market for a new credit card and wondering if a travel card is right for you, read on to learn more about some of the key considerations.

Spending Habits

Travel credit cards typically offer rewards for specific categories like dining, airlines, or hotels, so you stand to benefit most if these rewards are aligned with your lifestyle. If your expenditures are more diverse, you may be better off with a general rewards card. Review your monthly budget to compare the card’s rewards structure with your current expenses and goals. 

Fees & Interest Rates

You know what they say; there’s no such thing as a free lunch. Many travel credit cards come with annual fees that may outweigh any potential benefits, especially if you don’t travel frequently. It’s also important to be mindful of interest rates, which can negate the value of any rewards if you carry a balance.

Flexibility & Redemption Options

Some travel credit cards only work for specific airlines or hotel chains, while others allow you to use your points for a variety of travel-related expenses. Make sure you understand the redemption process as well as if the company issues certain blackout dates to avoid wasting money on a card that doesn’t align with your travel preferences.