Are You A Frequent Traveller? Here’s How To Make The Most Of Your Credit Cards

If you travel frequently, either for business or pleasure, there are credit cards made specifically for this purpose that offer several unique benefits and points for each trip. Travel credit cards are a unique class of credit cards that provide discounts, cashback, and other benefits on a range of travel-related costs.

Reward points are one of the best ways to make travel easier and more affordable. You can also use discounts and deals to book hotels. However, one must be aware of the expenses and limitations besides the features to take advantage of these reward points.

The following actions will help you make the most out of your travel credit card rewards:

Travel credit cards allow users to accrue reward points or air miles from regular purchases, particularly when it comes to travel-related expenses like reservations for flights, lodging, and meals. Certain cards provide up to five times the points on reservations made through affiliated channels, which can be exchanged for free flights or an upgrade.  

Keep track of the reward points you earn, so you can use them before they expire. Some reward points have limited validity and may expire if you do not claim them before then, even if many others have no expiration date and are carried over.

Lenders frequently collaborate with other businesses and brands to give you temporary discounts and incentives. You must keep a watch on deals and discounts announced by credit card issuers on different occasions, especially during summer or winter vacations, as well as festive seasons, to maximise your benefits.

International travellers can profit from the primary benefits, which include the removal or waiver of foreign markup charges. Foreign exchange fees range from 2-3% for the majority of cards. These charges are waived by card issuers optimising the overall benefits.

Access to airport lounges is certainly one of the hallmark perks that the majority of travel credit cards provide. Cardholders can relax and refuel with Wi-Fi, drinks, and charging stations prior to departure by using the free domestic and international lounges offered by HDFC Diners Club or ICICI Sapphiro.

It is best to pay your credit card amount all at once rather than in instalments because doing so will result in high interest rates and possibly more debt than you can afford to pay back. Lenders closely examine your spending patterns and frequency of payback. This will increase the chances of having your credit card spending limit increased.

The travel credit cards come with certain limitations as well. Although annual fees are the default, they typically outweigh the benefits when you take into account earning redeemable points or having access to free airport lounge services. Another disadvantage is that interest rates on outstanding balances can reach 2.5-4% per month, which may lead to a debt burden in the long run. You can maximise your travel reward points and stay out of debt by wisely using your travel credit card.