Today’s post is courtesy of Mr Credit Card from www.askmrceditcard.com.
The credit card is an essential tool to any traveler. Its most important function is to purchase services that cannot easily be secured by cash or even debit cards. Hotels and rental car companies require a large deposit for reservations made without a credit card. Using a credit card to purchase airline tickets ensures that your ticket cost is not lost in the event the airline should go out of business or fail to provide transportation and a timely refund.
The next most important function of a credit card is to provide benefits to travelers. Virtually all credit cards offer standard benefits like rental car insurance. Some include limited amounts of other types of travel insurance. Others offer concierge services that help you to find restaurants and hotels. Also, your credit card company should overnight you a replacement card in the event that yours is lost or stolen while traveling.
There are many cards that are specifically marketed towards travelers. They tend to offer rewards in the form of cash back or loyalty points such as frequent flier miles. In addition, airline credit cards can offer perks specific to the issuing company.
The most important thing to remember when choosing a reward card is that they are never for people who carry a balance. Reward cards have higher interest rates than no-reward cards. Furthermore, any interest paid will certainly dwarf the value of the rewards received. Anyone who is unable to consistently pay their entire balance in full and on time every month should stick with the lowest interest rate card they can obtain.
If you are a good candidate for a reward card, how do you choose the best one? With so many cards on the market, the best card for a particular person will vary based on an individual’s travel habits and the kind of rewards they desire.
If you travel frequently on a single airline, it is usually in your interest to apply for the credit card that is affiliate with that airline. You can expect to receive double miles for purchases on that airline, as well as other perks. These benefits can included miles that count towards elite status, waived checked bag fees and discounts on lounge memberships. For example, Chase’s Continental cards and Amex’s Delta credit cards offer free checked bags.
If you travel infrequently, or you spread your flying among several different airlines, you will probably benefit from a travel card that is not affiliated with an airline. You might consider a more flexible card such as the American Express Starwood Preferred Guest card. This card will allow you to gain hotel points, but the points can also be transferred to many airline programs. The Amex Membership rewards program is also a very flexible card that allows you to redeem awards with some airlines.
You may also want to look into a credit card affiliated with your favorite hotel chain. Whether or not you travel by air, you will need a place to stay at your destination. Hotel cards often have some air travel rewards in addition to the expected free night awards.
In the end, you should strongly consider what you plan on doing with your rewards. If you are saving up for an international first class flight award, you would certainly want a different card than you would if you were hoping for a free week at a nice hotel in New York. For many frequent business travelers, the idea of spending their time off traveling makes little sense, and they will simply opt for cash back cards.
Finally, there really is no single card that works for everyone in every situation. Most frequent travelers will have multiple cards such as a hotel card and an airline card. It is also important to carry more than just an American Express card, as they are not accepted at all places. In the event that your card is lost or stolen, it is also nice to have a backup in order to continue your trip without inconvenience or interruption.