{"id":7030,"date":"2015-06-09T06:15:47","date_gmt":"2015-06-09T13:15:47","guid":{"rendered":"http:\/\/add-vodka.com\/?p=7030"},"modified":"2015-06-08T09:17:22","modified_gmt":"2015-06-08T16:17:22","slug":"should-i-get-a-travel-credit-card","status":"publish","type":"post","link":"https:\/\/add-vodka.com\/should-i-get-a-travel-credit-card\/","title":{"rendered":"Should I Get a Travel Credit Card?"},"content":{"rendered":"

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Travel credit cards are just like regular credit cards, but they offer travel-related rewards, like airline miles, instead of traditional rewards like cash back. They are popular, of course, among people who travel frequently, like business people, students studying away from home or anyone trying to collect travel-related rewards for a vacation at the end of the year.<\/p>\n

So for many people, the question is, should I get a travel credit card?<\/p>\n

Travel credit cards come with benefits and drawbacks, and it is important to find the card that matches your needs, lifestyle and habits.<\/p>\n

Should You Get a Travel Credit Card?<\/strong><\/h2>\n

That depends, first and foremost, on what kinds of rewards you want.<\/p>\n

\u201cA travel credit card differs from a traditional credit card mainly in the type of rewards earned,\u201d said Matilda Geroulis, co-writer for The Travel Sisters. \u201cInstead of cash back, which a lot of traditional credit cards earn, travel credit cards earn miles, hotel points, points that can be used for both hotels or free flights, or for free hotel nights. Different credit cards offer other rewards, such as lounge access, priority boarding, free checked baggage, hotel elite status, no foreign exchange fees and more, depending on the card.\u201d<\/p>\n

Your credit card payment habits are also a major consideration. \u201cTravel credit cards are best for people who pay off their credit card balance every month,\u201d Geroulis said. \u201cUsually these cards charge a higher APR for carrying a balance.\u201d<\/p>\n

ValuePenguin research analyst and Huffington Post Money and Financial Education contributor Robert Harrow agrees. \u201cTravel credit cards have, on average, 17.89% APR, which is slightly higher than the overall credit card average of 15%,\u201d Harrow said.<\/p>\n

Rewards and APR are the two biggest concerns, but there are other considerations, as well.<\/p>\n

Related: 9 Best Travel Apps to Get Before Your Trip<\/a><\/em><\/strong><\/p>\n

Watch Out for Overseas Fees<\/strong><\/h2>\n

\u201cA foreign transaction fee is a 2.7-3 percent fee you pay your bank for every overseas card transaction,\u201d said Alex Gerard, founder of Cards Mix. \u201cWhen choosing a travel card, get yourself a card that doesn\u2019t charge this fee.\u201d<\/p>\n

According to Bank of America, many credit cards charge an overseas transaction fee every time you use your card in a foreign country. The bank recommends using your credit card for big purchases but paying for smaller purchases, like coffee, in cash. This way you can avoid racking up a lot of overseas fees, but you can also avoid carrying large amounts of cash. Even better, look for a card that doesn\u2019t charge overseas fees.<\/p>\n

Read: 37 Cheap Travel Tips for Millennials<\/a><\/span><\/em><\/strong><\/p>\n

Double-Check Overseas Acceptance<\/strong><\/h2>\n

\u201cDespite an overwhelming number of supported countries and points of sales that AmEx and Discover claim in their reports, you will have more peace of mind with Visa or MasterCard,\u201d Gerard said. \u201cThese cards are truly accepted everywhere. Another thing to keep in mind, in many places overseas you will not be able to pay with your American credit card if it doesn\u2019t have an EMV chip on it. Particularly in Europe, you will definitely have problems when buying tickets and paying a toll in automated booth and vending machines. The good news that most travel cards today are issued with an EMV chip.\u201d<\/p>\n

CNBC reports that for many travelers, the ability to use credit cards abroad<\/a> is inconsistent at best. The reason is EMV smart-chip technology<\/a> is quickly becoming the worldwide standard because it is difficult to counterfeit. But because of the technology\u2019s high cost compared to traditional magnetic strips, card issuers in the United States are lagging behind in putting EMV chips in their cards. If your card doesn\u2019t have an EMV chip, expect to have the most trouble at automated kiosks, such as ticket machines in parking garages.<\/p>\n

Watch Out for High Annual Fees<\/strong><\/h2>\n

\u201cSome travel credit cards have no annual fee, and some travel credit cards have an annual fee as high as $450 a year,\u201d Geroulis said. \u201cHowever, even if a travel credit card has an annual fee, sometimes it can be waived for the first year.\u201d<\/p>\n

Travel Credit Cards and Your Credit<\/strong><\/h2>\n

\u201cBuilding credit isn\u2019t easier or harder with travel cards,\u201d Harrow said. \u201cHowever, travel credit cards are generally more difficult to get over non-rewards credit cards. You generally need a FICO score of 720+ in order to qualify for a decent travel rewards credit card.\u201d<\/p>\n

\u201cMost travel credit cards require a good credit history (good credit score, free from bankruptcies etc.),\u201d Geroulis said. \u201cMany of the best travel credit cards require a credit score of 700 or above, but it depends on the card. There are travel credit cards that are easier to be approved for that one can start with. If someone has a bad or no credit history, they should work on fixing that first before applying for travel credit cards.\u201d<\/p>\n

Related: Jeff Yeager\u2019s 10 Ways to Save Money on Travel<\/a><\/em><\/strong><\/p>\n

What Card Should I Get? A Travel Credit Card Comparison<\/strong><\/h2>\n

According to Scott Smith, president of CreditRepair, these are the best three travel credit card offers for 2015:<\/p>\n

Best points: American Express Platinum<\/strong><\/p>\n