A travel credit card provides interesting travel-related incentives and bonuses. Travel credit cards provide a variety of characteristics and perks that might help cut down on your next vacation. It offers rewards in terms of air miles or points that can be converted into travel-related benefits.
If you are someone who travels frequently and wants to try a travel credit card, then here is your Travel credit card guide for beginners that will tell you everything you need to know about travel credit cards:
What makes a Travel Credit Card different from others?
Unlike other cards, travel Credit cards earn you travel-specific benefits. Every time you use a travel credit card, you get rewards in terms of miles or points that can be redeemed for travel-related benefits. A travel credit card also gives you accelerated rewards on travel-related spending. Such as 5X reward points on food expenses, etc.
Types of Travel Credit Cards:
Generally, travel credit cards can be bifurcated into 2 categories:
1. Co-branded Travel Credit Cards: The name of an airline or hotel company appears on co-branded cards. These cards' rewards are generally exclusively redeemable with one airline or hotel.
2. General Travel Credit Cards: General travel cards earn points that can be redeemed for a credit on your account or used to pay for any travel cost. You may use your points to book travel directly or redeem them for a credit on your account.
About Travel Credit Card Rewards:
You need to understand the following points to know more about travel credit card rewards:
● The rewards are in the form of points or miles.
● Accelerated reward points or miles on expenditures made on travels like ticket bookings, hotel bookings, etc.
● You may get complimentary flight tickets, bonus air miles, dining discounts, 1+1 buffet at designated restaurants, complimentary lounge access, priority pass, fast luggage, etc. as rewards earned on spending as well.
How to maximize reward points earned in travel credit cards?
If you wish to maximize your travel credit card reward points, consider the following checklist:
● Make sure to collect your welcome or sign-up bonus.
● Look for any brand collaborations that might earn you accelerated reward points.
● Don’t make your travel arrangements via a third party. Do it yourself to maximize reward earning capacity.
● Read your credit card’s reward policy for informed and timely spending.
● Use your travel credit card for payments outside of travel as well. It earns rewards on expenditure done in almost all categories.
● Be disciplined and consistent with your payment to bag up loyalty points.
How to choose a good Travel Credit Card?
You need to keep in mind the following points in order to choose a good travel credit card:
● Cost of the Credit card.
● Sign-up benefits
● Return on Investment of the Credit Card.
● Travel credit card reward redemption program.
● Decide if you want to opt for a co-branded or a general travel credit card.
Top Travel Credit Cards in India:
Some of the top travel credit cards are mentioned below:
1. HDFC Regalia Credit Card
2. MakeMyTrip ICICI Bank Signature Credit Card
3. Citi PremierMiles Credit Card
4. Axis Bank Vistara Signature Credit Card
5. Air India SBI Signature Card
Additional Reading - 8 Common Credit Card Mistakes And How To Avoid Them