Credit cards are one of the most lucrative financial tools in today’s world. Credit cards are like an e-loan, whenever you use your credit card to buy something you are taking a loan from the credit card company. These loans are later sent to you as a credit card bill. This bill contains the cost of all bought commodities plus additional charges which the company charges you for using their resources.
As per the census of 2014-15, travelling is a $7,581 Billion industry, though it has taken a big hit during the widespread pandemic yet is a great source of income and provides jobs to more than 250 million people worldwide. As technology grew, the travel industry was one of the first who adapted to these changes. Nowadays major travelling and tourism establishments prefer cashless methods of payment over conventional liquid cash.
Why are credit cards more relevant to the travel industry than debit cards?
Most credit card companies have business tie-ups with globally recognised travel brands who provide exclusive offers if you use a credit card to book their services. Well-known airlines, travel agencies and others provide up to 15% off on their services if they are booked via a recognized credit card. This makes credit cards more relevant to travel industries than debit cards.
Now, if you are someone who is planning to go on a dream vacation and want a suitable credit card that will benefit your expenses, then we provide you with a few tips and tricks that will help you choose the best credit card for travelling.
There is nothing called the perfect credit card
A perfect credit card is like an Ideal machine in physics, seems almost perfect but doesn’t exist. Every credit card has its pros and cons, some provide offers from the airline but don’t have coverage over cruise services. While others have offers for everything related to travel but the discount percentage is very less. So choosing a perfect credit card for your travelling endeavours falls on your hands. We advise you to be certain about a place you want to visit and then check for credit cards which provide offers on facilities that you will require whilst visiting that place.
Be sure about your credit score before applying for a credit card
Credit cards cannot be issued to any and everyone, as it is a financial responsibility that limited people can enjoy. Most credit cards are only issued to people who have constant monthly income and a good credit score. Most credit cards companies prefer a score of 750 and more as a standard score to issue a credit card.
Things to look for while searching for a credit card for travelling
Best travel cards will always offer customers a large introductory offer. This is a marketing trick to attract the newer customer into using a certain credit card. Sometimes the offer can be big enough to get you a couple of free flights. Thus, lookout for a card that has the largest Welcome Offer.
Added Category Spending Bonus
Travel cards offer points for a certain amount spent, the more points you collect greater are your chances to get a reward. If you can shop from the company’s approved stores then you can receive double points. So, it’s always better to look for cards that have more partners and offer better spending bonuses.
In order to get the added bonuses and special spending points, every credit card company maintains a minimum spending limit. This limit can be anywhere from Rs 20,000 to Rs 3 lakh. It is always better to look for a card that offers the lowest spending minimum so you can get added bonuses by spending less.
All credit cards levy annual fees as a charge for the facilities they provide. This annual charge can range anything between Rs 499 to Rs 16,999. Here the perk is not choosing the one with the cheapest annual fee rather select one which you can afford. Banks like ICICI have provided credit cards with annual fees as less as Rs 499.
If you are planning for a foreign tour then select a credit card that has the least transition rate among the bunch.
Travel cards have various perks, the most sought after ones are:
- No foreign transaction fees
- Free checked baggage
- Priority boarding
- Free hotel stays
Hope these tips will help you find the best credit card for your tour.