Traveling is something we all enjoy and love doing, however we can’t deny the fact that it costs a lot of money. This would be far more costlier for the people who travel frequently. This is where the travel credit cards come in handy.
The travel credit cards give you some points on every payment you make with them which you can later use for travel related payments. The travel credit cards are being hyped lately, which makes people question are they worth it? To make your understanding more clear, we are here to tell you the pros and cons of travel cards and if you would want to invest in one.
Pros of Travel Credit Cards
Here are some of the benefits of travel credit cards:
1. No Transaction Fee
The biggest benefit of a travel credit card is the zero transaction fee. When you travel abroad, if you pay with your credit card there will be some additional or Transaction fee that you will have to pay. The transaction fee can make a lot of difference and help you save tons of money too.
2. Free access to lounges
Almost every travel card gives you access to airport lounges, this is quite a luxury that you get with the card. It will be ideal to relax at the lounges and make your traveling more comfortable.
3. Free Flight Tickets or Accommodation
Some of the travel cards will provide you free flight tickets or accommodation depending on the kind of card you have got and the annual fee you pay on it. This is because the card company may have tied up with an airline company or a hotel chain, so you will get a free ticket or accommodation from a certain airline or hotel chain.
We all know how costly the flight tickets can get and this can save you a huge chunk of money while traveling.
4. No Risk of Fraud
With a travel credit card, you don’t have to worry about being scammed, theft, or phishing. The travel credit card gives you protection against such frauds or theft so you don’t have to bear the loss.
5. Higher Reward Points
Credit cards in general give only a limited number of reward points, but with travel reward points you will get the highest possible reward points. So more reward points would mean more saving on travel related expenses which is a plus.
Disadvantages of Travel Credit Cards
Here are some of the drawbacks of travel credit cards;
1. Higher Annual Fee
Credit cards in general have some annual fee, similarly the travel cards also come with a gift annual fee. The more benefits you get from a card the higher its annual fee will be. The annual fee can be justifiable if you are frequently traveling and using the card as much.
2. Blackout Dates: Benefits have to be unveiled in a limited time period
Most of the benefits you get with a travel credit card, you will have to use that within a certain time period and after that they will expire. Oftentimes, you might have to make changes to your trip or accommodation options to get these benefits which may not be ideal for some people.
3. Devaluation of points
With the economic uncertainty, sometimes you may not get the ideal value of a reward point. For example, one reward point might give a good deal today but it may end up losing its value in the upcoming 6 months. So you may end up losing more money rather than saving.
4. Benefits depends on various factors
All the included benefits of a travel credit card come with many terms and conditions which may not be feasible for everyone. Often times you may not get the benefits because the terms and conditions of your travel credit card company isn’t met
Is a Travel Credit Card Worth It?
The answer is yes and no. This depends on how frequently you travel, where you travel, and how much you are going to spend with your travel card to get all the benefits. It won’t necessarily be a good option for someone who only travels a couple of times a year and someone with rigid travel plans.
However, if you are a frequent traveler, can pay the debt on your card regularly, and avoid interest fees then the annual fee may be worth all the benefits you will get from your travel card.
