Planning a vacation is exciting, but there are many details to take care of before you’re able to pack your bags and head off. One of the most important is securing a credit card that will allow you to earn rewards for all the spending you’ll be doing on your trip. But with so many options available, how do you choose the right one? Here are some tips for comparing credit cards:
Consider your credit standing
If you have a good credit score, you’ll be able to get more out of your travel rewards and perks. However, if your credit is less than stellar, there are still ways to get a great card—but it may take more work and cost more in the process.
If your credit is less than stellar, don’t give up hope just yet! The right travel rewards card can help improve your credit score over time by showing lenders that you’re responsible with money. However, some cards may not accept you as a customer if you have a low credit score or no history (a thin file). In these cases, look for cards that require an annual fee rather than those without one; there’s no risk involved for the company if they discover later on that something wasn’t right about their decision-making process when approving applicants like yourself at first glance.”
Think about the travel you do and might do in the future
When considering what kind of travel credit card to get, you must consider the traveling you do. For example, are you a frequent flier? Do you only go on one or two trips a year? Or maybe your travel habits are somewhere in between.
The more often and farther away from home you travel, the more sense it makes for you to choose a card with high rewards rates. If your lifestyle requires less frequent but longer trips across multiple continents, then picking one with lower rewards rates could be better suited for your needs.
Watch out for annual fees
Don’t be fooled by a no-fee card’s initial appeal. Many cards charge annual fees, but they’re still worth it if you’ll use your card enough to make up for the cost. Look at how much you spend on travel each year and whether this extra expense will be worth it. If it won’t, we’d recommend using a lower interest rate or cash-back rewards card instead.
Read the fine print
The best way to determine if a travel credit card is right for you is to read through everything written on it. This includes checking out the interest rate, fees, minimum payment and rewards. If there are any hidden fees or charges that seem unreasonable, consider finding another card that isn’t so strict with its wording and conditions.
“If you want to build a good credit history, it can be helpful to have at least one credit card and use it responsibly,” says Lantern by SoFi experts.
Hopefully, this article helps you find the right travel credit card for your needs. If so, apply for one of the cards we’ve featured on our list! Don’t forget to use it responsibly.