Travel Credit Cards: Check Benefits, Charges And Other Key Details

Credit cards have become quite popular these days due to the multiple benefits, from the convenience of payments when you are running short of cash to a wide range of rewards.

Credit card issuers are rolling out several cards tailored to meet the specific needs of customers across categories. If you are someone who travels frequently, a travel credit card could be a suitable option for you.

Apart from cashback and reward points on hotel as well as flight bookings, travel credit cards come loaded with several other benefits. The best travel credit cards offer a range of perks like free airport lounge access, travel insurance, reduced foreign-transaction fees and exclusive-partner deals for shopping.

Here's everything you need to know about the benefits, features, and charges included in travel credit cards.

• Reward Points and Air Miles: When you use a travel credit to pay for costs related to your travel, such as hotel and flight bookings, you can earn rewards and air miles, which can be used to redeem while making travel-related expenditures.

• Complimentary Airport Lounge Access: One of the key features to look for in a travel credit card is complimentary airport lounge access. This option gives you free access to the airport lounge, Wi-Fi and other amenities when you are at the airport.

• Waivers on Forex Transactions: If you frequently travel abroad, you can opt for a travel credit card that gives you the opportunity to reduce or completely waive the foreign markup fee while making a foreign exchange transaction.

• Travel Insurance: Several travel credit cards have the option for complimentary travel insurance, which can provide coverage for situations, such as loss of luggage and flight cancellation.

• Reward Structure: It is important to see the type of transactions that a travel credit card offers and then decide which suits your needs the best.

• Partnerships: A credit card company often offers customised deals for its customers for shopping, hotel accommodation and flight bookings. These deals come due to tie-ups with top brands, airlines and hotel chains.

• Global Acceptance: If you are an international traveller, it is wise to opt for a credit card that uses global networks like Visa and Mastercard to make international transactions.

• Expiry Date for Reward Points: It is important to check the expiry date for rewards on a credit card. In some cases, the rewards points could be accumulated indefinitely.

• Annual and Joining Fees: Travel credit cards usually come with annual fees in the range of Rs 500 to Rs 10,000 and a one-time joining fee.

• Foreign Exchange Markup Fees: If the credit card does not come with the facility for waiving foreign exchange markup, then an international transaction will be charged 2% to 3% as foreign markup fees.

• Interest Rates: The interest rate on credit cards is usually in the range of 2% to 4% monthly. It is in your best interest to clear the dues on time to avoid penalties and high interest charges, which may range between 36% and 45% per annum.

• Redemption Charges: In some cases, a redemption charge may be applied when you redeem the points on your credit card.

Travel credit cards can be helpful to meet your expenses for dream holidays. However, the unrestricted use of credit cards may push you into a debt trap.

Controlling credit card usage and restricting unplanned spending during visits to a tourist destination can help you reap the benefits offered by the card issuer.

It is advisable to analyse the features, benefits, fees and interest rates before picking a travel credit card.