First off, I am not, nor will I ever be, a financial advisor. This is not financial advice. Please don’t take financial advice from travel agents, as a general rule, that’s not our specialty! As such, I am not going to try to sell you any one particular card. Instead I want to talk a little bit about different perks that are offered by travel credit cards so you know what to look for. Generally, Aida’s Adventures Travel recommends that you use a credit card to pay for hotels and rental cars when possible, so you can avoid unnecessary holds on your debit card. If you need a card anyway, you might as well get one that gives you some free stuff! And if you have a few credit cards, you might have some of these perks at your disposable already and don’t even know it!
Rental Car Insurance
Some travel credit cards offer complimentary secondary rental car insurance if you pay for your rental car with the card. Generally, secondary insurance comes into play after your regular car insurance, but you should check with your credit card to see what their particular terms are. If you already have a credit card that offers this for free, you might as well use that card for car rentals if you can.
Perks
If there is a particular brand that you are loyal to, such as a hotel brand or an airline, it might be worth looking into if they have a credit card and what perks it might offer. For example, I have a Marriott branded card that gives me discounts and perks at Marriott properties. Some airline cards even offer perks like free bags. Just watch the annual fees and make sure you will get your monies worth. And be careful of places that offer things like “1% back on all *insert company name here* purchases,” as you can probably find a card that offers that perk everywhere, not just with that particular brand. If you can find a card that offers say 2% back on all purchases, that’s a better deal even if it’s not branded with your favorite cartoon character. Most of my clients are not loyal to any particular brand, and if that’s the case for you a general travel card might be a better fit.
Foreign Transaction Fees
If you travel overseas a lot, you should look into a card that waives foreign transaction fees. Some cards add up to 3% in fees every time you swipe your card! That adds up really fast!
Cash Back
Lots of travel credit cards offer cash back. I’ve seen everything from 1-3%. Just watch for annual fees and make sure you’ll get your monies worth.
Travel Insurance
Some cards, usually with super high annual fees, offer some basic travel insurance. If you travel a lot, they might be worth investigating. Our agency can also sell you an annual travel insurance plan in the $200-300 range, which might be a cheaper option, and obviously would not involve having your credit pulled.
Miles
People who are very savvy might be able to save a ton of money by utilizing miles rewards programs. But I want to give you a few warnings. Miles programs rules can be confusing and complicated, and there are often lots of dates to watch. I think that *most* people would be better off with a cash back option than a miles rewards program. Especially because those miles rewards programs have you locked into spending the rewards on travel, whereas with cash back cards you can generally spend it however you want. However, if you’re really savvy, travel a lot, and have the time to watch expiration dates, then a miles rewards card might be right for you. Just make sure you do your due diligence! And look into cash back cards too, it’s always nice to have the flexibility to use the cash back money for anything instead of just travel.
No matter what make sure you are always checking with your individual credit card program to for rules, coverage, expiration dates etc. Every card is different! I know from experience that a lot of my clients don’t know that this travel perks are out there, so I wanted to give a basic overview so you know what to look for, and hopefully these tips will save you a few dollars on things you’re planning to buy anyway. That’s money you can spend on souvenirs!


