In the market, there is no such term as good or bad credit card for travel. It all depends on your personal choice and the features the card offers, such as with good travel rewards. Several options stand out in certain characteristics. Therefore, the key to correctly choosing our credit card knows how we are going to use it. Today we will explain the five aspects that you have to review before making the decision to hire a credit card.
Interest rate
It is one of the most important aspects of credit cards for travel. Depending on how you use it, the interest rate varies, so if you use a credit card to withdraw money from an ATM, the interest rates for this operation are higher than if you use it to buy (assuming you defer your payments in both cases). For this reason, it is important that you use the best card in each of these different operations, so you can have card A that has a low interest to postpone purchases and card B that has a low interest to withdraw money from the ATM.
Annual fee
In most cases, the cards are associated with an annual fee that varies depending on the type of product, so for example a classic Visa product is cheaper than a Visa Gold product. The price difference lies mainly in the services associated with it (insurance). We can also find certain credit cards that subsidize the annual fee if we reach a minimum annual expense, so it is important that you value and analyze how much you will spend with that card to know if you will benefit from this.
Associated services
As mentioned above, the main service associated with a travel credit card is free insurance. These insurances can cover us from theft of purchases made with the card itself, to life insurance or travel insurance. You can earn miles using the travel credit card. Make sure the card has good reward earning program. However, what is the best credit card for travel rewards? Get in touch with an expert now.
Commissions
Like any financial product, travel credit cards have commissions associated with them. These commissions are usually applied, for example, to cash withdrawals through ATMs, to deferrals of card receipts or even insurance charges. Before signing the hiring of a credit card, make sure of these terms.
Promotions
Promotions are a commercial hook in credit cards, so we can contract one simply because the promotion interests us, such as the financing of purchases for a period of more than 30 days, free payment for the first year, return of a percentage of the money spent with the credit card, etc. They are usually varied, so analyze them and hire the option that interests you the most.
Advantages of a travel credit card
You can buy when you have no money. Divide the payment in installments. Withdraw money from ATMs on credit. They are safer than carrying money in your pocket. They are ESSENTIAL to rent a car. They will always ask you for a credit card and block an amount to ensure that you return the car in good condition. Abroad it is crucial to carry a credit card for security. It is a means of payment accepted in all places, including foreign banks to withdraw foreign exchange. Normally they are associated with a small travel or life insurance that helps in something that you buy for your trip. Trading on credit is equivalent to paying high commissions. If you pay something for $1,000, they will charge you a commission of X $ on the one hand, and if you split the payment, another commission for staggering it.
