Looking for a Travel Credit Card? Make Sure It Has These 5 Features

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Travel credit cards offer rewards and all kinds of other perks. Learn about the must-have features you should look for to find the right travel card. 

If you love to travel, then a travel credit card is good to have in your wallet. This type of credit card allows you to pay for travel expenses in points or miles, so they’re an easy way to save money. Many of the top travel rewards cards also have lots of other features, too.

Often, the most challenging part is finding the right card. If you choose wrong, you could end up with a card that doesn’t have everything you need. To avoid that, make sure any travel credit card you’re considering has all the following features.

1. Travel rewards you can actually use

The way you can use travel rewards depends on your credit card. For that reason, it’s important to only get a card with rewards you’re sure you can use. Ideally, you should be able to redeem your rewards every time you travel.

So, only get an airline credit card if you fly on that airline regularly. Only get a hotel credit card with a hotel brand that you like. And always check how a credit card’s rewards work, and how you can use them, before you apply for it.

2. A big welcome offer

Travel credit cards tend to have some of the largest welcome offers. These give you the opportunity to earn a lot of points, very quickly. Some of them can be worth $500 or more in free travel.

Since welcome offers can be so valuable, it makes sense to look for a travel card with a good one. Don’t forget to confirm that you’ll be able to complete the requirements to earn the welcome offer. It’s usually just a spending requirement, such as making $3,000 in purchases in the first three months.

3. No foreign transaction fee

Some credit cards charge foreign transaction fees, with 3% being a standard fee amount. If you go abroad and spend $3,000, this would cost you another $90.

Foreign transaction fees are one of those extra costs that nobody needs to pay. Many travel cards don’t charge this type of fee, so it’s easy enough to avoid. To be safe, double check the fees for any card you’re considering, because there are travel cards that charge one.

4. A high rewards rate on your typical expenses

The more points you earn on your regular spending, the more you can save on travel. To maximize your rewards, look for a card with a rewards rate that’s a good fit for your usual spending habits.

If you go out to eat often, look for bonus rewards on dining purchases. If you spend a lot on groceries, pick a card with bonuses at supermarkets or on grocery delivery services. And if you feel like your spending is pretty balanced, consider going with a card that has a competitive rate, such as 2 points per $1, on all types of purchases.

5. A reasonable annual fee for what it offers

There are travel cards at just about every price point, from $0 per year to nearly $700. The key to deciding if an annual fee is worth it is comparing the cost to the value you’ll get from the card. More expensive cards typically have more valuable perks, such as:

Travel spending creditsHigher rewards ratesBigger welcome offersAirport lounge access

For example, at first glance, a $250 annual fee probably seems like a lot to pay for a credit card. But if you like the benefits and estimate that it will save you at least $750 per year, then you’re coming out $500 ahead.

You have all kinds of options if you’re in the market for a travel credit card. If you look for one with those five features, you should have no trouble finding a card you like and that helps you save money on your travels.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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