Finance

Things to keep in mind before getting yourself a travel credit card

For all of us who love to travel to exotic locations, the offering of travel credit cards is surely a boon from many perspectives as they provide us with significant financial flexibility, especially when one is in a foreign country.

With many airlines joining the credit card fray in collaboration with well-known banks, the options for travel credit cards are aplenty.

Here are a few points to keep in mind when you decide which kind of travel credit card to opt for yourself:

First of all, identify what your travel goals are. How frequently do you plan to travel? Where do you plan to travel? What are your goals in taking a travel credit card? These are the questions to keep in mind. In screening your options look at the reward for spend offers that are available, for spends on some credit cards may convert to airline miles while other rewards may include discounts on dining or hotel accommodations.

If you already have points from previous travel on specific airline alliances, then you could consider a credit card that adds on to the mileage you already have, to maximize your benefits.

Many credit card companies offer lucrative signing up bonuses when you sign up for a travel credit card. These may add as many as 50, 0000 points to your credit. However, the offer of such a bonus is usually tied in with how much you commit to spending in the first 90 days after receiving the card. Do check these details before you settle on a travel credit card.

Ensure that you maintain a good credit score before you apply for a travel credit card as your chances of your application getting rejected are far less when your credit score is consistently high. If your credit score is less than 650, then the bank would be within rights to deny you the card.

Also, importantly, do try to keep track of your typical spending habits and how you could maximize the points, you earn on your card by optimizing how and on what you use your card.

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