Credit Card Travel

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How to Choose the Most Suitable Credit Card for Traveling

It is fair to say that a credit card travel is a magical card that is extremely beneficial for making transactions, especially when you are traveling. With a credit card, you do not have to bring lots of cash for shopping, paying hotel bills, restaurant bills, and many more. Travel credit cards are especially beneficial for travelers since they offer so many benefits. For example, special offers, cashback, discounts, and even reward points for free lounge facilities at the airport, free holiday vouchers, and many more.

With those special offers and discounts, you will surely be able to save a significant amount of your traveling budget. But do not forget that you still should use a credit card wisely. For those of you who are planning to apply for a credit card, there are several things that you have to consider. Below are some tips for choosing the best credit card travel according to your needs and preferences.

Pay for travel by credit card – concept illustration

Credit Card Application Bonus

Usually, credit card issuing banks give a welcome bonus in the form of points, free credit card travel miles, gifts, cashback, or discount vouchers. Some also give free dining in selected merchants once your credit card application has been approved. However, you must be careful because these interesting discounts and special offers have terms and conditions. For example, you can get a bonus if you shop within a certain amount.

So, always consider the minimum purchase when you are applying for a credit card. Consider your financial ability. Forcing yourself will only put you at a loss. Do not spend much money only for getting points, bonuses, or other gifts that do not match your financial capabilities.

How to Collect Points

Ask the representative of the bank or the credit card issuer about how to collect points. What kind of transaction can have a lot of points, how to collect the points, and what item can be exchanged with the points collected. As a traveler, it is important because credit card travel rewards are very beneficial and useful. Some banks allow you to exchange your credit card points with hotel or restaurant discount vouchers. But do not forget to consider the terms and conditions.

Annual Fee

The next thing you need to consider when choosing a top credit card travel is the annual fee. There are travel credit cards with a low annual fee or even a free annual fee for a lifetime. There are also travel credit cards with a high annual fee, but they are worth it with the facilities and benefits offered. So, the decision is fully in your hand when it comes to the annual fee. Just make sure it meets your needs and financial capabilities.

Overseas Transaction Fee

If you often travel overseas, having a travel credit card will be very convenient. You can shop for souvenirs, dining at restaurants, visiting tourist spots, and make other transactions easily. But behind this convenience, there is usually an overseas transaction fee. You need to ask the bank or fintech aggregator customer service for these additional overseas transaction fees before choosing a travel credit card. So, you will not be at a loss by carelessly shopping overseas during your travels.

Facilities Offered

It is also important for you to consider the facilities you can enjoy from the credit card issuer. Ask the representative of the bank or credit card issuer whether there are any free holiday vouchers, cashback on dining at restaurants, airline ticket discounts, and so on. These can really affect your traveling budget. Choose a travel credit card with the right benefits for you.

Your Lifestyle

Before you apply for a credit card travel, adjust the interest, annual fee, and credit card limit with your monthly income. Do not apply for a travel credit card with a high limit, but the interest is expensive as well, which you cannot afford. Moreover, do not forget to consider your lifestyle. Remember that having a credit card is like having a loan. You need to pay it every month. So, make sure you use your credit card wisely and responsibly.

Exchange Rates

If you often use a credit card for transactions overseas, choose a travel credit card that gives the best exchange rate. The problem is it is not easy to find a bank or credit card issuer that gives the best exchange rate. So, there is nothing wrong with asking for references from your friends and acquaintances who have been using certain travel credit cards. Ask them whether the travel credit card they use offers good exchange rates or not.

Transaction Miles Count

The attraction of a travel credit card is that credit card transactions generate points that can be exchanged for miles for purchasing airline tickets. So, if you are a true traveler, it is worth it to consider the miles rate of the travel credit card you are going to apply for. Compare each credit card in terms of converting points to miles. For example, one of the best airlines in the world, Singapore Airlines, has a KrisFlyer Miles program that can be exchanged for a free flight ticket.

Do not forget to pay attention to the ways of using miles. Credit card issuing banks have their own terms and conditions. Most of them will give reward points to main credit cards with smooth and unblocked payment status.

Travel Insurance Protection

Next, you have to consider the traveling insurance protection that the credit card issuer provides. It will be better if you choose a credit card that offers this benefit as an additional facility without you having to pay for an additional cost to get protection during your travels. Travel insurance is good for providing protection while traveling, not only for life protection but also for other things such as delays or items losing on the way.

Credit Card Limits

Traveling, especially overseas, requires a significant amount of money. Therefore, it is necessary for you to consider the limit of the travel credit card you are going to choose. If the credit limit is too low, your credit card will be useless when you are traveling overseas. You will likely end up not using it at all. Ask the representative of the bank about the limit of the travel credit card and possible ways to increase the limit.

Recommended Travel Credit Cards

Among so many travel credit cards out there, there are some recommended ones. Here they are.

  • HSBC Visa Signature

HSBC Visa Signature is suitable for you who want to easily enjoy a variety of top-notch facilities. You can get free reservations at selected hotels in the Asia Pacific, discounts on various transactions at more than 500 merchants worldwide, and unlimited domestic airport lounge facilities. By having this credit card, you can also get travel insurance for free. Moreover, HSBC Visa Signature offers competitive exchange rates.

It also offers 4x reward points for hotel reservations, flights, dining, and transactions during traveling. You can exchange your reward points for Asia Miles, Garuda Miles, and KrisFlyer.

  • Standard Chartered WorldMiles Travel Card

By having Standard Chartered WorldMiles Travel Card, you can get access as well as a priority pass to 700 airport lounges in the world for free. Another benefit is the collection of miles is twice as fast for transactions abroad. You can exchange your miles for KrisFlyer, Asia Miles, GFF, and Air Asia BIG. Interested in having this credit card travel?

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