A travel credit card can be a good way to score big travel savings and luxury perks. But to maximize their value, it’s important to understand how they work. Here are a few of the ins and outs:
- Travel cards are a type of rewards credit card: points or miles
- They usually come with added perks like access to airport lounges, travel insurance, and annual travel credits
- Here are 4 types of travel credit cards: General, airline, hotel, and premium travel cards.
- You can book award travel with your points and miles through your card’s rewards program
- Other options to redeem rewards is by transferring the rewards to a travel partner or a cash back option
- Travel cards have some of the highest-value welcome offers of any credit cards out there, so keep this in mind
- You should make sure that the card’s value outweighs its annual fee
- Take advantage of ancillary benefits such as travel insurance, TSA precheck/Global entry credit, no foreign transaction fees, annual credits, etc.
This is summarized from a Yahoo Finance article. If you want to read it more in depth see link below.
Source: Yahoo Finance (https://finance.yahoo.com/personal-finance/how-do-travel-credit-cards-work-172432075.html)