A travel credit card is a type of credit card that’s designed for people who regularly travel around the world. Like other credit cards, travel cards allow you to earn points, rewards, or airward miles that can be redeemed to get a number of discounts and benefits.
Be it a trip to another state with your family or a vacation across the world, travel credit cards are a great way of reducing your travelling expenses and making your trips more affordable. Let’s take a look at what they are, their benefits, and why you should apply for a travel credit card this summer!
Types of Travel Credit Cards
There are 3 types of travel credit cards. The benefits of every card vary accordingly but all of them help enhance your travel experience, and make your trips more convenient, and affordable. Let’s take a look at the types of travel credit cards here.
General Travel Credit Cards
A general travel credit card is the most commonly used card. It allows its holders to earn airward miles, points, or rewards that can be redeemed for travel-related discounts, like upgrading their flight without a fee, getting a better room at a hotel without paying extra, getting access to business lounges at airports, etc.
These cards can be used for everyday expenses and that’s where you can earn your points, apart from using them on your travel trips.
Hotel Credit Cards
Hotel credit cards limit cardholders to earning points when they book hotel rooms. However, the points or rewards system offers an accelerated accumulation of points. The points and rewards can also be redeemed for limited discounts, like free breakfasts, room upgrades, or access to exclusive hotel events.
Airline Credit Cards
Airline credit cards are a good option if you frequently travel on a particular airline. Airline companies offer their loyal customer accelerated reward point accumulation on every ticket’s booking. The reward points offered through these credit cards can be redeemed to upgrade seating upgrades, free tickets, early boarding, free bag checking, extra luggage weight, etc.
Benefits of Travel Credit Cards
Having a credit card has a lot of perks but if you’re a person who likes trotting the globe, a travel card has even more benefits. Let’s take a look at them here.
Can Be Used As Your Everyday Credit Card
A general travel credit card doesn’t have any differences compared to a conventional credit card apart from the fact that it offers more travel-related benefits and the rewards can be used for travel purposes only.
This means you can use your travel credit card for everyday use, just like any other credit card.
Accelerated Points Accumulation
While airline cards or hotel cards may only offer you reward points on booking airline tickets or hotel rooms, general travel credit cards offer you reward points on every purchase, no matter how small the amount of purchase is. This helps in the accelerated accumulation of reward points that can be redeemed on your next trip!
No Foreign Transaction Fee
Usually, travel credit cards don’t charge foreign transaction fee for credit card holders when they are on a trip to another country. This can help you save a lot of money since you tend to spend it when you’re on a vacation trip.
Travel Insurance
Travel credit cards offer travel insurance policies that can cover you financially when you are travelling. Travel emergencies can happen at any time. Some of the emergency travel insurance covers include:
- Lost or stolen luggage
- Health conditions that require immediate medical attention, like a heart attack
- Dental emergencies
- Injuries that require immediate surgery
Free Upgrades
You may not be able to use your travel card to get gift vouchers or discounts at your favourite coffee shop. However, you can get a seat upgrade or a better room at hotels on your next trip!
Travel credit cards offer a range of travel benefits and discounts that can be redeemed after you collect a certain amount of points. These benefits include:
- Free air tickets
- Seat upgrades on airplanes
- Reimbursement of a hotel room or flight cancellations
- Access to VIP lounges at the airport
- Hotel room upgrades
- Free breakfast at hotels
- Complimentary drinks at the hotel bar
- Free bag checks
- Extra luggage limit
Travel Credit Card Annual Fee
Travel credit cards have an annual fee that depends on what credit limit you choose and the package you have. It can start from as low as $90 a year and go up to $650 a year or more. A lot of people think this is a downside, however, with all the benefits that travel credit cards come with, the annual fee is well worth it, especially if you are a frequent traveller.
This is because emergencies can occur at any time during a trip. In case you go for independent insurance apart from your credit card, you’ll still have to pay a credit card annual fee along with insurance premiums. This makes travel credit cards a more affordable option. Moreover, you won’t be able to redeem the rewards while you spend money on your trips abroad. Furthermore, you may as well have to pay a transaction fee on your purchases.
Apply for a Travel Credit Card
Having a travel credit card is worth it if you’re a frequent traveller. However, it’s important you know which credit card suits you the best and what your requirements are. If you can’t figure out which card to apply for, make sure you visit Great Canadian Rebates.
We are an online platform and can help you compare travel credit cards in Canada to choose the best one for yourself. You can also apply for any credit card directly from our website, which will also give you an opportunity to earn cash back rebates upon approval of credit cards! Get in touch for more details regarding credit card rebates.