Premium travel cards tend to come with a lot of exclusive perks, but higher annual fees than other types of travel credit cards. Like any credit card offer, premium credit cards may be worth it if the cardholder expects to reap enough benefits to offset the cost of the annual fees, interest rates, and other terms and conditions that one should consider when shopping for credit cards. However, there are also many great travel credit cards with no annual fee to consider.
Be sure to consider the following when comparing premium travel cards.
How Often Do You Travel?
It can be tempting to think that traveling often automatically justifies getting a premium travel credit card, but what insights can you discover if you do some calculations? If you add up the travel expenses you expect to incur in a given year, how much would the premium travel cards save you if you used them to pay for these expenses?
Don’t forget to factor the annual fee(s) into your equation, and the rewards you could still earn with a travel credit card with no annual fee.
Are Rewards Limited in Where They Can Apply?
It’s common for premium rewards cards to limit where your bonuses can apply. For example, a company may offer cash back rewards when you make purchases at a certain hotel or offer points towards purchases only with certain airlines.
Cardholders should always ask themselves if these offers align with their usual travel plans, or if they need a card that provides more flexibility in ways to earn rewards. Some premium travel credit cards offer ways to transfer points so that, for example, points earned from flying don’t just count towards a certain airline company, but can also be used at hotels.
How Many People Are Using the Card?
The number of users on a credit card is always an important factor to consider, because more users often means more potential to earn rewards. Many premium travel rewards cards offer perks that apply to multiple users on one card. These can be great features for families who travel often, or a business with multiple employees who have access to a card.
The Bottom Line
Premium travel credit cards can be worth it if you use them often enough to take advantage of the rewards and offset any annual fee or interest expenses. On the other hand, it may be worth considering a travel credit card without quite as high fees but still offers some perks so that cardholders can earn rewards to travel and while traveling.