4 of the Most Important Features When Choosing a Travel Credit Card

Since I'm a frequent traveler, I've used travel rewards credit cards for several years. I like that I get rewarded when I book travel arrangements and spend money on other purchases. I also enjoy using my cards' many other benefits. 

Are you considering applying for a travel credit card? It's essential to choose one that meets your needs. Not all travel credit cards have the same features, rewards structures, or perks. Here are a few factors to consider when choosing a travel credit card. 

1. Fee schedules

Before applying for any credit card, you should research the fees. An annual fee can slowly eat away at your checking account balance. If the card you're considering has one, you'll pay the fee yearly to earn rewards and use the benefits provided. 

If you're on a tight budget, look for a credit card with no annual fee or one with a lower yearly fee. Many travel credit cards have reasonable annual fees of $100 or less. 

Another pitfall to watch out for is foreign transaction fees. Some travel credit cards have no foreign transaction fees. However, if there are foreign transcription fees, you can expect to pay a fee of around 3% every time you swipe your card for international purchases. If you plan to travel abroad, this fee can add up quickly. 

You should also research other fees before selecting a card to know what to expect. Luckily, you can make strategic moves to avoid some fees -- like paying your entire credit card balance every month to avoid interest charges.

Here are some credit card fees to consider: 

• Late payment fee
• Interest fees based on the annual percentage rate (APR)
• Cash advance fee 

2. How rewards are earned

Some travel credit cards offer flat-rate rewards on all purchases. Others have select bonus categories, where you'll earn rewards at a higher rate when you swipe your card for eligible purchases. Knowing how the card earns rewards is necessary because it can help you choose a card that matches your current spending habits. This way, you're earning rewards as you make your usual purchases. 

3. How rewards can be redeemed 

Once you have earned enough rewards, you'll want to use them. Some travel credit cards have flexible redemption options, allowing cardholders to redeem their rewards for a statement credit, transfer to participating travel partners to book airfare or hotels, or book travel reservations using a travel portal. But not all credit card rewards programs are the same, so make sure you know what to expect. 

4. Other credit card perks 

Many rewards credit cards include added perks. Some credit cards offer valuable travel benefits like trip delay or trip cancellation insurance, baggage delay insurance, or complimentary airport lounge access. These benefits can vary from card to card. 

Take some time to review the benefits provided so you can decide if you'll get good value out of the card you're considering. Knowing this information is especially important if you're paying a pricey annual fee to use the card, because you don't want to waste money on unused perks. 

Choose a credit card that works for your needs

Not every card will be the right match for you, but there are many top-rated travel credit cards to consider. As you explore card options, consider your travel preferences, spending habits, and credit card rewards goals so you choose a credit card that fits your goals and lifestyle well. Check out our best travel credit cards list to learn more about their features and benefits.