How to find a great travel credit card

Travel credit cards can be incredibly useful if you’re a frequent traveller. And depending on the card you choose, they may help you save on travel and accommodation, or give you access to perks that you might not otherwise get. However, that doesn’t necessarily mean they’re going to offer the best benefits for your situation. So, before you begin comparing individual travel cards, see if this guide can help you decide if this type of credit card is right for your needs.

Travel credit cards can include any type of credit card that’s designed to provide value to frequent travellers. They might do this in various ways, including:

• Reducing the cost of your flights, such as through travel vouchers
• Allowing you to upgrade your hotel room or flight seat for free or more cheaply using rewards points
• Waiving foreign transaction fees, so you can use your card abroad just as you would at home
• Giving you VIP treatment at airports or hotels.

Travel credit cards are just like any other credit card in the sense that there are eligibility criteria you have to fulfil if you want to apply for one, they charge a variety of fees, like a cash advance fee for ATM withdrawals and transfers to other accounts, and they may offer introductory deals to reel you in. They may, however, offer some products and services that other cards don’t offer.

There are several kinds of travel cards.

If you travel in a lot of different ways, a general travel card may offer you greater flexibility. These kinds of cards will usually give you a chance to earn points through everyday shopping and may include bonus points for travel-related purchases like dining, flights, car rental and hotel stays. You can then redeem those points for a wide range of travel-related expenses such as flights, holiday packages, rental cars, hotel stays and more.

Some general travel cards may allow you to transfer the points you earn to your hotel or airline loyalty program, and may offer generic travel benefits and perks like waiving international transaction fees.

Frequent flyer cards are, as the name implies, designed for people who do a lot of air travel. They’re often linked to a specific airline’s rewards program, but that may not always be the case.

Frequent flyer credit cards can allow you to earn frequent flyer points (e.g. Velocity points or Qantas points) and use those points towards flight purchases and seat upgrades. But, in some cases, they could also offer specific flight and travel related, ‘card-members’ perks as well. These may include:
• Priority check-in for early boarding
• Free or increased checked baggage
• Airport lounge access
• Travel insurance.

Hotel credit cards are designed for people who like to stay in hotels from a particular chain. When you earn points through a hotel credit card, you can usually redeem them for things like free nights of accommodation or hotel room upgrades.

As with frequent flyer cards, you may also get access to extra hotel-related perks, such as:

• Complimentary breakfast
• Access to special events
• Extended checkout
• Complimentary snacks on arrival
• Extended free Wi-Fi
• Elite status with the hotel chain’s rewards program.

Apart from the benefits associated with earning points on a travel credit card, many travel credit cards may offer significant benefits when you’re travelling. Not all cards offer all these perks, so be sure to check the terms and conditions of the card you’re considering to ensure they offer the features you’re looking for.

• No foreign transaction fees — this is a popular perk for those who travel a lot overseas. When you shop with an Australian credit card overseas, you could pay a currency conversion fee and a fee for using the card on an overseas network. This is typically a percentage of the transaction so can really add up. If your card waives foreign transaction fees, you could save a lot of money.
• Travel insurance — if your trip doesn’t go as planned for one of the reasons listed in your card’s travel insurance Product Disclosure Statement (PDS), this kind of insurance may help reimburse some of the travel costs associated. Depending on the policy, this may also include coverage for lost baggage, which may help cover some of the costs such as buying replacement toiletries, clothing and other necessities.
• Airport lounge access — if you want to relax in an airport lounge before your flights, you might appreciate cards that offer free access. Just be aware that if they do offer lounge access, it may be limited to a certain number of visits.
• Priority baggage check-in and boarding — have you noticed that some airports have shorter queues for checking in baggage and some people are allowed to board before everyone else? If you want a more comfortable flight and don’t want to have to get to the airport extra early to allow for long queues, these perks might help.
• Special event access — if your favourite hotel chain frequently offers fun events or has programs that give you free tickets to local events, a travel credit card that lets you access those perks could be attractive to you.

The insurance offered on various cards, doesn’t necessarily cover the same things. It’s important to review the PDS, which includes information about inclusions, exclusions and restrictions, when deciding if the insurance is suitable for your circumstances. Some items which may be covered could include:

• Flight cancellations that are out of your control
• Lost, stolen or delayed baggage
• Medical expenses for emergencies while overseas which may include emergency evacuation
• Rental car excess (which is payable if you damage a rental car).