Most people know that a travel credit card is quite a bit of a responsibility, and it’s not something to step into lightly. However, the problem is that many people don’t know what to actually look out for when they’re signing up for their travel credit card. What elements are most important in a new card? These five things are some of the most crucial elements to consider.
1. Annual Fee
Obviously, most people are going to think about the annual fee first. This is, after all, the fee that typically comes right out of your pocket, although some cards waive the fee for the first year. Remember that the annual fee helps pay for your benefits; a card with a high annual fee can still be worth it if you travel quite a bit.
2. APR and Special Financing
What’s the APR of the card you’re applying for? Are there any special financing options you can take advantage of if you make certain purchases? It’s typically not a great idea to carry a significant balance on any credit cards, as they tend to have very high APR, but special financing can be a great way to spread the cost of a purchase out over multiple months.
3. Method of Rewards
How do you get rewards? Do you earn rewards as “points” or “miles”? Do you get automatic cashback, which you can apply on your statement? Do you get cashback that you can only use on purchases from the travel company specifically? Understanding how your rewards work will help you understand how your travel credit card will benefit you in general.
4. Cashback Locations
Where can you get cashback with the travel credit card that you’re most interested in? Can you only get cashback when you make purchases with the travel company that issued the credit card, or will you get cashback with other purchases as well? If you can get cashback with other purchases, what percentage can you get, and will certain categories give you more than others?
5. Sign-On Bonuses
A sign-on bonus can be a great way to save plenty of extra money in the first few months after you make a purchase. These sign-on bonuses typically require that you spend a certain amount within a certain number of months after you open the account. Check the United Explorer card and make sure to take advantage of the 70,000 Mile sign-up bonus.
Signing up for a travel credit card is quite the responsibility, but it can also give you significant benefits. If you’re interested in signing up for a travel credit card, make sure you’ve looked at these five things before actually signing up for it. That way, you won’t have anything to worry about once you actually apply for and get access to the travel credit card that you’re most interested in using to save money on your future travel endeavors.
To read more on topics like this, check out the Travel category