3 Tips to Choose the Right Travel Credit Card for Yourself
Pick what’s right for you
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So, you are looking to do some traveling later this year. You decide that it is time for a travel credit card. When it comes to choosing the right travel credit card for yourself, the following are three tips to help you:
1. Aim for a Signup Bonus
2. Aim for High Rewards Within Your Spending Habits
3. Aim for Perks and Protection You Need
1. Aim for a Signup Bonus
A signup bonus is a bulk of points given to you when you spend a specific amount within a specific timeframe of opening a new credit card. For example, Travel Card A offers 100,000 points when you spend $5,000 within six months of owning the card. If that level of spending in a six-month timeframe is achievable for you, and the 100,000 points have a dollar value of $1,000, you are positioning yourself for travel points that can cover your next domestic trip’s airline and hotel costs.
2. Aim for High Rewards Within Your Spending Habits
When it comes to rewards, some travel cards may offer five points for every dollar spent towards travel, three points for every dollar spent towards dining, two points for every dollar spent towards entertainment, etc. You should aim to get a card that offers high rewards based on your spending habits. If you are taking multiple trips per year, you should look towards a travel card that offers more points towards traveling. If you dine out a lot, you should look towards a travel card that offers points towards dining.
One thing you should be aware of is the annual fee. Typically, higher annual fee credit cards will have more rewards, but they will have higher annual fees. Premium travel credit cards tend to have an annual fee close to or over $400. No annual fee travel cards will have the least rewards, but you will not have to worry about an annual fee. The typical annual fee for a travel credit card ranges from $49 to $95, which is likely the best place for most people to start in terms of rewards that have value without an overly expensive annual fee.
3. Aim for Perks and Protection You Need
