If you happen to’re new to the world of bank cards and/or journey rewards, you is likely to be questioning if a journey bank card is sensible for you.
If you happen to journey continuously and even semiregularly, journey bank cards are a few of the most rewarding playing cards available on the market. With loads of perks and incomes classes — to go together with their typically very excessive annual charges — journey playing cards can present loads of worth if used appropriately.
Listed below are a few of the upsides and disadvantages of journey bank cards so you possibly can work out if it is the suitable card sort for you.
Execs of journey bank cards
Journey perks and advantages
Premium and even mid-tier journey bank cards usually include lavish perks that just about anybody can benefit from once they’re on the go.
Frequent advantages embrace annual credit for normal journey, companies like International Entry and TSA PreCheck, elite standing with a given airline or lodge, entry to airport lounges, free checked luggage and precedence boarding.
Most of those perks are conferred mechanically on cardholders, which means it will not take a lot effort in your half to take benefit.
Journey-based rewards bonuses
If you happen to spend rather a lot on journey, you may additionally take pleasure in many playing cards’ travel-focused rewards classes, which provide additional factors or miles once you spend with an airline or lodge or use a card issuer’s journey portal.
For instance, the favored Chase Sapphire Most well-liked presents 5 factors per greenback on journey booked by way of the Chase journey portal, 5 factors per greenback on Lyft purchases (by way of March 2025) and a pair of factors per greenback on all journey not booked by way of the Chase journey portal.
If you happen to’re loyal to a selected airline or lodge model, contemplate making use of for one among its cobranded playing cards, just like the Southwest Speedy Rewards Plus Credit score Card or the Marriott Bonvoy Daring Credit score Card, to take pleasure in all of the perks and rewards bonuses of that program.
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Versatile rewards
Many journey playing cards supply the flexibility to redeem your factors or miles throughout varied lodge and airline switch companions, resulting in much more useful redemption alternatives.
To do that, most card issuers have their very own devoted journey portals so customers can discover the easiest way to make the most of their rewards. Some even supply the possibility to earn extra factors or miles on journeys booked by way of the portal, as talked about above.
For instance, eligible Chase cardholders can get greater than 1.25 cents per level in worth by transferring rewards to the issuer’s 14 totally different airline and lodge companions. Among the greatest Chase switch companions embrace United Airways MileagePlus, World of Hyatt and Singapore Airways KrisFlyer.
Helpful welcome bonuses
Lastly, premium journey playing cards usually include hefty welcome bonuses, which, if obtained, can justify the cardboard’s annual price a number of instances over.
Most playing cards include a spending threshold that you must hit inside the first three to 6 months of card membership, so take note of that quantity to see if it is a cheap spending requirement for you. If a card has a particular or elevated welcome supply when making use of, even higher.
Cons of journey bank cards
Credit score rating necessities
Whereas conferring loads of useful advantages, journey bank cards normally have stringent credit score rating necessities, making it troublesome to use for some.
Most journey playing cards would require a “good” to “wonderful” credit score rating of 670 or greater, with probably the most premium playing cards having a good greater requirement. If you happen to’re not in that vary, contemplate enhancing your credit score rating earlier than getting denied and hurting your rating additional with a tough inquiry.
Excessive annual charges
Journey bank cards may include a little bit of sticker shock: excessive annual charges, with probably the most lavish playing cards having worth tags upward of $500.
Whereas these annual charges usually justify themselves if you happen to take full benefit of the cardboard’s advantages, that may be arduous to do if you happen to aren’t touring continuously or laser-focused on maximizing worth. Contemplate beginning small with a no-annual-fee or low-annual-fee card and going from there.
Excessive APRs
Journey bank cards additionally usually include excessive annual proportion charges, which is the quantity of curiosity you may pay in your debt if you happen to do not pay promptly.
In fact, this may be averted completely if you happen to pay your card off in full every month, one among TPG’s 10 commandments of rewards bank cards. But it surely’s nonetheless a consideration if you cannot achieve this.
Troublesome to maximise worth
It may additionally be arduous for some to get the utmost worth from their journey bank cards if they are not continuously on the go or seeking to fund an enormous upcoming journey.
Unsurprisingly, the easiest way to benefit from your journey rewards is to place them towards journey. If you happen to as a substitute redeem rewards for money again or assertion credit, you doubtless will not get the complete worth. Furthermore, many lodges and airways are continuously revamping their rewards packages, which means the worth of your factors and miles themselves can fluctuate.
For assist maximizing worth, regulate TPG sources like our evaluations of what factors and miles are value and our guides on getting probably the most out of your subsequent bank card or trip keep.
Do you have to get a journey bank card?
In case you have the required credit score rating and may justify the annual price, you may nearly positively have the ability to squeeze worth out of a journey rewards bank card. Do not forget that welcome presents on playing cards, to say nothing of advantages and rewards packages, at all times change. In case you have your eye on a card that you just suppose may fit your needs, apply at a superb time to get probably the most bang on your buck and money in on an important welcome supply.
Backside line
Selecting the best journey bank card can assist get you over a monetary hump and fund your subsequent huge journey, or it will possibly simply put somewhat extra cash in your pocket every month. How you utilize it — and the way a lot worth you derive from it — is very dependent in your way of life and what makes probably the most sense for you and your pockets on the time.
For extra sources and recommendation, try our freshmen information to bank cards.
