Travel credit cards can be lucrative, but that doesn’t mean they are ideal for everyone. Let’s see the 5 signs you should get a travel credit card.
Travel credit cards offer generous points and rewards. If you have been approved for any of the top travel credit cards and you have spent enough to get a signup bonus you can quickly pay for hotel stays, air travel, and much more. You can also earn enough points. However, travel credit cards do not cover all consumer spending habits or travel patterns. Also, credit cards can be damaged, ranging from late fees to credit card debt misuse.
5 Signs You Should Get A Travel Credit Card & What Card To Get
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1. You have Excellent Credit
If you plan on applying for a travel credit card, you will need to have excellent credit. Excellent credit is considered to be a credit score of 750-850. The benefits you get with a travel card are some of the best perks you can possibly get with any credit card. You get access to first-class, free flights, discounted hotels, and the best lounges in the airport worldwide.
Considering all these amazing benefits that make your travel life so much easier, they want to know that you are going to pay the card on time and use it. The less risk to the lender the better the rewards will be. So if you are in the market for a travel credit card and have bad credit there is still time to fix your credit.
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2. You pay your bills on time
To get the most out of any credit card it’s important to make sure you’re ready to pay all your bills on time. Remember that your payment history is the biggest component of your FICO score. Meaning that late payments can hurt your credit more than anything else. Worse, in addition to damaging your credit score, your card issuer may issue a penalty APR which will increase your interest expense.
Related: What Happens When You Don’t Pay Your Credit Card Bill
3. You will not use rewards as an excuse to over Spend
Because travel credit cards offer points and mail based on how much you spend, they can be a nuisance for people who are not living on discipline or budget. It’s easy to buy things that you don’t need to reap maximum rewards, but this strategy will save you money over time. The best way to make the most of a travel credit card is to use it only for bills and planned purchases. If you allow rewards to entice you to overpay, you are not giving yourself any rights.
4. You understand the value proposition:
Although many travel credit cards charge an annual fee, the majority waives the first year’s annual fee. However, after 12 months, you will have to decide whether or not to keep your card. This is where you need to do some math, otherwise, you may end up paying for benefits you don’t need.
If you pay an annual fee, you need to make sure you are earning enough rewards and using enough benefits to make it profitable. Without analyzing your expenses and making sure that what you earn is worth more than the annual fee.
Related: How To Waive Annual Fees On Credit Cards
5. You travel often to get meaningful rewards :
If you don’t have the time or budget to travel, signing up for a travel credit card may not be helpful. If you can’t get a day off from work this year, for example, travel rewards don’t help free up your schedule. And if you don’t have the budget to pay for food and entertainment, scoring free flights or a free hotel room won’t help you in the long run.
On the other hand, if you do travel often getting a travel credit card can help save you money. The American Express Platinum Credit Card is a great card for travel.
Benefits of The American Express Platinum Card:
- Earn 85,000 Membership Rewards Points after you spend $15,000 on eligible purchases in the first 3 months
- 5 points per dollar spent on airfare and hotels and 1 point per dollar elsewhere.
- Annual credit of $200 for airline fees
- Up to $200 a year in Uber credit
- You get reimbursed for the application fee for Global Entry or TSA PreCheck every five years.
- Access to over 1,200 airport lounges worldwide
- Exclusive perks at hotels, concierge service to help wherever you are, and access to restricted events.
Although the offer of a travel credit card is always inclined, getting a new credit card may not be the best course of action for you. Ultimately, these offers are great for debt-free people, live within their means and ability to travel shortly. Make sure the credit card you are interested in matches your travel and spending patterns. To get these amazing benefits for travel credit cards you need to have excellent credit. So if you have bad credit then you will need to fix your credit before you apply.
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