Who are travel credit cards for?

A typical travel credit card offers mile points for every travel-related purchase which can be redeemed for any future travel purchases on that card. Multiple credit card companies offer different travel cards with unique features. 

Is a travel credit card for you?

The real question would be how much do you really travel and would investing in a travel credit card to reduce your travel experiences over time. If you travel multiple times a year and are willing to spend a bit extra on cards for their rewards, it might be worth investing in a travel credit card. However, if you only travel once or twice a year, a cashback card and adding money into a savings account in a timely manner might make more financial sense for you. 

There are two different kinds of travel credit cards:

• Co-branded travel cards

This type of card carries the name of an airline or hotel chain and reward points earned can be redeemed at that specific brand and its partners. They are limited in flexibility since they are tied to only one brand but might also offer specific perks such as room upgrades or free checked bags. Co-branded travel cards are meant for customers that are usually used to only working with one particular hotel chain or airline. 

• General-purpose travel cards

This type of card is issued by a credit card company and is not tied to any specific airline or hotel and the reward points earned can be used to pay for a range of travel expenses but don’t offer any particular hotel line or airline perks. 

Depending on the types of travel and brand of travel agents you might use, either the Co-branded or the General-purpose travel cards might be suitable. 

If you already own a travel card, creating a new travel account and owning multiple cards might make it hard to keep track of which card qualifies for which brands. Owning a single card can be sufficient to earn multiple points (miles per dollar) in different travel spending categories. 

Conclusion

Travel credit cards are meant for customers that travel frequently and spend a good amount of their money on travel brands such as airlines, hotel services, etc. every year. Which branch you spend your money will help you decide which type of travel card to invest in.