Overview
Credit cards are a widely accepted form of
currency. Travel credit cards are designed to appeal to those who travel
often on airlines, buses, trains or any other means of transportation
where credit is accepted as payment. Travel credit cards allow
cardholders to make reservations, make purchase, as well as use them in
ATM for cash withdrawal. Business travelers and those who travel for a
livelihood can benefit out of these credit cards. You can prefer travel
credit cards depending on how much travel you do and use these credit
cards to pay during a specific period of time.
How It Works
Regarding how travel credit cards work, they are very much similar to
major credit cards, but offer more benefits than regular credit cards
do. When you use these cards for travel reasons or for any purchase, you
earn points. The earned points can be used for purchases through the
rewards program.
Benefits
Travel credit card offers you more benefits than regular credit
cards. When you are on a business trip, you can't be roaming to find an
ATM. But if you own a travel credit card, it gives you multiple
benefits. They are recognized worldwide and are accepted for payment in
virtually every place that accepts credit cards. When you use these
credit cards for travel reasons, whether for auto maintenance or gas,
you will gain multiple points. You can also use the points for the next
trip. In addition, travel credit cards offer benefits like return
protection, travel accident insurance and assured reservations.
Cost/Pricing
Like the other major credit cards, travel credit cards typically
involve paying an annual fee. This fee varies from $30 to $200 a year,
and this is based on the type of travel credit card you have. Travel
credit cards also include charges incurred for exceeding the credit
limit. You will also be charged for paying the due using a check with
insufficient funds, and thus it is advised to avoid writing bad checks.
Timing
It's you who has to decide whether you need a major travel credit
card, depending on your necessities. It would be wise to opt for a
credit card if are you are ready to start building a solid credit
history.However, some who suggest that the right time to get a credit
card is when you are young, as it will help in building credit. When you
plan to buy a credit card, make sure that you are ready to be
financially accountable.
Companies/Industries
Most banks and many major financial institutions offer travel credit
cards. Travel credit cards are typically issued by major credit card
companies that are available around the world.Some companies that offer
travel credit cards as one of their financial services include American
Express, Discover Card,and Chase.
