Travel credit cards: 7 key things to know to make the most of rewards | Mint

If you are a frequent traveller and often fly to exotic places in India and overseas, it must be common for you to use a travel credit card to claim reward points, lounge access, earn travel miles and a range of other benefits.

Having more than one travel credit card is also typically beneficial more often than not. It is, meanwhile, imperative that you make the most of these credit cards. To make that happen, one should make note of 7 key points mentioned below.

Travel credit cards: Seven key points to remember

1. Key features to evaluate: At the outset, cardholders should look for the cards which offer higher points and miles on travel-related purchases such as flights, hotels, and dining.

One should also check if the card offers transfer points to airline or hotel loyalty programs for an optimum value. Some cards also provide substantial bonuses for meeting a minimum spend within a specified period. 

Some travel cards have high annual fees but offer perks that offset the cost. For example, free lounge access, hotel stays, or travel insurance. Additionally, one should opt for a card with zero foreign transaction fees for international travel.

2. Key benefits: One should use points and miles for free or discounted flights or upgrades. Some of the key benefits include free or discounted stays with facilities such as free breakfast, lounge access and other priority services such as early check-ins, boarding, or fast-track immigration.

3. Best practices: One should focus spending on categories that earn higher rewards (e.g., travel, dining). 

One should avoid carrying balances to prevent interest charges, which can negate rewards value. It is also advisable to redeem points & miles strategically, as their value may vary between travel partners and redemption methods.

Experts also advise the cardholders to keep track of points and miles expiration dates to ensure you don’t lose them. Additionally, one should utilise periodic discounts or cashback deals on travel portals, hotel chains, and airline partners.

4. Considerations before choosing a card: There are certain considerations that one should make note of before opting for a card such as your travel habits (be it domestic or international), and preferred airlines & hotels.

You should also check the fee and compare it against the benefits it offers. You should evaluate if the rewards and perks outweigh the annual fees. You should also ensure your score qualifies for premium travel cards.

5. Some pitfalls to stay away from: It is vital to note that you spend what you can repay, even while chasing a welcome bonus. You should also be mindful of foreign transaction fees, late payment fees, or cash withdrawal penalties.

You should redeem points wisely to maximise their value (such as international flights usually offer better redemption rates).

6. Access to lounge: Some premium cards often include priority pass memberships or complimentary airport lounge access.

7. Redemption flexibility: You should ensure that your credit card enables you to redeem rewards for flights, hotels, upgrades, and other travel expenses.

Additionally, some cards also offer complimentary travel insurance which covers trip cancellations, delays, or lost luggage.