If you’re thinking about getting a travel credit card, there are a number of things you’ll probably need to look at before actually applying and signing all the necessary forms. However, some of these things may be a bit more complicated than others. Whether you’ve applied for travel credit cards before or not, here are four important things that you might want to look at when you’re thinking about applying for a new credit card.
1. Sign-On Bonus and Requirements
The sign-on bonus for a specific travel credit card is often something that a credit card company will heavily advertise. However, it’s up to you to make sure you’re looking at it and budgeting to fit it in your general budget. If a sign-on bonus requires that you make $1,000 in purchases within the first three months, for example, make sure that you can put at least $350 of purchases on that card every month to easily hit the requirement.
2. Value of Rewards Points
This is something that isn’t set in stone for most travel credit cards. When you earn rewards points, you’ll be able to redeem them for different travel expenses, and for most travel credit cards, the company doesn’t give a specific dollar value for your points. That means you need to do your own research on it. It’s also a good idea to look into how you might be able to increase the value of your points.
3. Rewards Rates
How many points will you earn per dollar when you make purchases? Are there any bonus categories that might increase the value of those points? Some cards will vary dramatically. For example, the Marriott Bonvoy Bold credit card has a baseline rewards rate of 1 point per dollar spent. However, its highest bonus category, available when you make bookings at participating hotels, is a whopping 14 points per dollar.
4. Annual Fee
Lastly, it’s a good idea to take a look at the annual fee. Most of the time, when it comes to travel credit cards, you can get more value if you choose a credit card that has an annual fee. However, there are also plenty of $0 annual fee credit cards out there that can be immensely helpful for families that don’t travel very much. Make sure that the annual fee is one that you’re comfortable with and one that naturally slots into your overall budget.
Infographic created by Clover Network – a leader in helping businesses accept credit card payments
A travel credit card can be a great choice for many people, especially people who really love travel. If you’re interested in traveling more frequently, it might be a good idea to look at how a travel credit card can help you save money, both on the travel purchases you’re making now and on free travel in the future. As long as you pay attention to these four important things, you’ll be able to get the best travel credit card possible for your particular needs.