Whether you leave the country several times a year or only take a few trips per year, a travel rewards credit card could be a useful addition to your wallet.
Many travel rewards credit cards offer money-saving perks that make flying more affordable, such as free checked bags and discounts on in-flight purchases. These cards also offer additional points or miles for travel purchases, which can extend to restaurants and dining.
However, if you want to apply for a travel rewards credit card, it’s important to find the best solution. Here’s how to do it.
1. Make sure the welcome offer is accessible
Many credit cards offer a sign-up bonus that can earn you tons of points or miles. But before you commit to a new credit card based on the welcome offer, make sure you can easily take advantage of the offer.
The spending limit to receive a sign-up bonus can vary from card to card. In some cases, you may only need to spend $500 or $1,000. In other cases, the spending limit can be much higher.
The time frame must also be considered. Some credit cards give you three months to meet your spending requirements for the welcome offer, others give you four months or more.
In any case, make sure you can get the offer you’re pursuing without going into debt. It’s probably not worth accepting a $300 sign-up bonus if you’re then forced to carry a $3,000 balance for a long time while accumulating expensive interest and potentially hurting your credit score as well.
2. Find out how important lounge access is
Some travel rewards credit cards offer airport lounge access as a bonus. This may seem like a fantastic perk, but you should be aware that many credit cards with lounge access come with a hefty annual fee, so if you only fly once or twice a year, the fee may not be worth it.
Also remember that you usually have the option to purchase lounge access on the day of your flight, and the cost of a day pass may be cheaper than the annual fee for your travel card.
3. Make sure you get your fee back
It is not a given that your credit card with travel rewards charges an annual fee. But for many of these cards, the Is common practice as they tend to offer higher rewards.
Paying an annual fee for a credit card—whether for travel or otherwise—isn’t always a bad idea. Sometimes you can more than make it back in the form of credits for various purchases and cash back. But before you apply for a new card, run the numbers to make sure you’re likely to get your fee back one way or another.
Also, keep in mind that annual credit card fees can range from $95 to hundreds of dollars. A $295 annual fee may be worth it if it lets you earn $1,000 in cash back more easily than another card, or if you get $400 in statement credits for services you use, like hotel stays and rideshare services. But make sure you get what you pay for.
A credit card with travel rewards can be a great addition to your wallet, even if you don’t travel every week or month. Use these tips to find a card that’s likely to serve you well.
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