It’s always advisable to travel with some cash in hand. That said, there has been a sizeable shift in the way people transact in the past couple of years. Plastic money has become the new norm, leading people to use their credit cards more liberally thanks to their convenience factor. However, a travel credit card is slightly different from a regular credit card as it offers exclusive benefits on hotel bookings, travel bookings, and purchases from specific stores.
Choosing the right travel credit card that satisfies the globetrotter in you can be tricky. This is because not all travel credit cards are the same. Each travel credit card comes with specific benefits, so it’s wise to apply for a credit card that fits your requirements.
Note these factors when you apply for a credit card for your travel needs:
1. Consider multiple travel credit cards: Each credit card has its own unique set of benefits, so you can’t possibly rely on a single card to reap all the advantages. Ideally, you should keep different cards for flight tickets, hotel bookings, and shopping. You can also browse through several credit cards online to pick the best travel card for specific expenses.
2. Check for deals and offers: Most credit cards are bundled with alluring deals and offers. So, keep your eyes peeled for welcome benefits such as 40,000+ bonus points and 3x reward points on dining, official spending, and airfare each time you fill out your credit card application form. Find out if there are any special travel perks, and never settle for a credit card that offers just one reward point for every Rs. 100 spent.
3. Watch out for hidden charges: Credit card companies are notorious for charging high upfront fees and levying hidden charges. So, before you apply for a credit card, make sure you probe the issuer of all the accompanying hidden costs. Do not opt for a travel credit card with high annual fees and foreign transaction fees if you are a frequent overseas traveller.How to stay within budget using your travel credit card
Apart from choosing the right travel credit card, you also need to follow a disciplined approach to stay on a budget and make the most of your vacation. Here’s how you can go about it:1. Prepare a budget
Set a budget while preparing your travel itinerary. This will give you an overview of your entire vacation/business trip expenses. Also, research the kind of expenses you might incur during your travel. Doing so will help you identify the right travel credit card with the best offers to suit your requirements.2. Use a travel credit card
If you move around constantly for business or leisure, it’s advisable to opt for a travel credit card. You can apply for a credit card online quite easily and explore various bank offerings in detail. Many credit card companies provide a range of benefits such as welcome bonuses, loyalty programs, spending bonuses, amongst others. Besides, using your travel credit card gives you access to airport lounges, cashbacks, and discounts.
3. Set a daily spending limit
It’s easy to lose track of your expenses and end up spending more than you had originally planned for while travelling. A good way to avoid this is to set a daily spending limit according to your total travel budget. Alternatively, you could redeem gift cards and cash vouchers to cut travel costs. A penny saved is a penny earned, and a travel credit card card will go a long way in accumulating points which will eventually save you money.Bottom line
Choosing the right credit card for your travel expenses will help you get the best deals and offers across a range of categories. From hotel bookings to air tickets, a travel credit card is the ideal way to handle your vacation/business spends easily and conveniently.
You can opt for a specific travel credit card that’s tailored to your requirements, whether it’s a business trip, family or couples’ vacation. You can even maintain multiple travel credit cards and use them for certain transactions. But before you click on the online credit card application form, we would suggest you carefully go through all the unique features that are bundled with your travel credit card.Moneycontrol journalists were not involved in the creation of the article