How to Choose the Right Travel Credit Card?
Three main considerations when choosing a travel card:
- foreign transaction fee/ ATM fee
- worldwide acceptance/EMV chip
- travel rewards
Foreign transaction fee
A foreign transaction fee is a 2.7-3% fee you pay your bank for every overseas card transaction. When choosing a travel card – get yourself a card that doesn’t charge this fee. All Capital One cards and several specific travel cards from other banks are your best choice. See our full list of no international transaction cards here.
ATM fee
ATM fee applies mostly to debit cards (everybody should know that withdrawing cash from a credit card is a no-no), so if you need cash when traveling abroad – take one of the debit cards with no ATM fees. Charles Schwab debit card and CapitalOne360 card are your friends here – they waive ATM fees for you.
Worldwide acceptance
Despite an overwhelming number of supported countries and points of sales that AmEx and Discover claim in their reports, you will have more peace of mind with VISA or MasterCard – these cards are truly accepted everywhere.
Another thing to keep in mind – in many places overseas you will not be able to pay with your American credit card if it doesn’t have an EMV chip on it. Particularly in Europe, you will definitely have problems when buying tickets and paying a toll in an automated booth and vending machines. Good news that most travel cards today are issued with an EMV chip – just pick one.
Travel rewards
A travel card is not only the card that you take with you on a plane but also the one that earns you the ticket. You have a great choice of travel rewards cards – with rewards air miles, cash back, flexible rewards points. Some of the greatest cards are listed in our editors’ picks.
In general, chose the type of rewards that you prefer – cash back, frequent flyer miles, or flexible points. Decide whether you need a card with maximum rewards and the biggest bonus, or a card with no annual fee. It is an easy calculation – all rewards and bonuses in the first year of the card should outweigh the annual fee. If you are not sure that you will spend enough to unlock a sign-up bonus, then maybe it is safer to go with a no annual fee basic card.
Consider your credit situation – some of the best offers are available for excellent credit only.
Does having/applying for a travel credit card have a
different effect on a person's credit than a traditional credit
card?
No, I cannot imagine a situation when this will be true. It is just like with any other credit card – when the bank makes a hard pull from your credit history, it takes a small temporarily hit. After you get a card, your total credit limit will increase, and you can get a boost in your score if you maintain a low credit utilization ratio.
What are the features to consider with travel credit card?
All major travel card concerns I outlined above. Look deeper into sign-up bonus details – most cards require you to spend a particular sum to unlock the bonus. Check if the card has an annual or monthly cap on rewards.
What qualifications are needed to get a travel credit card?
Most of the good travel rewards card require a good to excellent credit. With a fair credit, you can sign for a co-branded card like the one that is offered by cruise companies or a Priceline Rewards card.
If you have no credit or a bad credit – you can start with a secured card from by US Bank and AeroMexico – that’s a good card with a low $25 annual fee and air miles rewards.
| regular APR | |
- 2x miles on gas and groceries
- 1x miles on all other purchases
- get 5,000 bonus on first card use
$25 annual fee
$0 first-year fee
reports to credit agencies
24 days grace period
unsecured card offer after 12 months
Students with limited credit can apply for a student travel card – there are plenty of them
What are some of the best travel credit cards?
My favorites are:
Capital One Venture (2x miles on every purchase, 40, 000 miles bonus), Barclaycard Arrival Plus (2.2% rewards rate, 40,000 miles sign up bonus), Chase Sapphire Preferred (40,000 miles sign up bonus, effective 1.25 miles on every purchase, 2.5 miles on travel and dining).
| regular APR | |
- earn 2x points on travel and dining out
- get 50,000 bonus after spending $4,000 in the first 3 months
- get 5,000 bonus miles after adding authorized user in 3 months after account opening
- 25% more in travel redemption
$95 annual fee, waived for the first year
or no annual fee for basic Sapphire card
2x points on travel and dining
1 point per dollar on all other purchases as usual
the card is made of metal
| regular APR | |
- earn 2x miles on all purchases
- get 40,000 miles bonus after spending $3,000 on a card in the first 3 months
- redeem easily as a statement credit towards any travel expenses
no first-year annual fee, $59 after
40,000 miles welcome bonus
2x miles on everything
Visa Signature status
