Is Your Travel Rewards Credit Card More Expensive Than You Think?

If you like to travel the world, you may already use travel rewards credit cards to earn rewards on your spending and access helpful credit card perks. For many travelers, travel credit cards are valuable personal finance tools.

But ensure you continue getting good value from your credit cards. Your travel rewards credit card could be more expensive than you realize. Here's what to consider to determine if you should continue using your favorite travel credit card or get rid of it.

Every fee adds up

Some of the more premium travel credit cards have high annual fees. However, some cardholders may be paying fees beyond the annual fee. If you carry a balance on your card, you'll pay credit card interest fees. These fees can add up fast and lead to credit card debt. Paying your account balance in full every month will allow you to avoid interest charges.

Here's another fee that could impact your checking account balance: foreign transaction fees. If you travel abroad and your credit card company charges foreign transaction fees, you'll pay a fee for every purchase made in a foreign currency.

Credit card issuers typically charge a fee of 3% per transaction, so every charge adds up. The good news is you can avoid these fees by getting a credit card without foreign transaction fees.

These are just a couple of examples of additional fees that you may be paying to use your card. Avoiding unnecessary fees can make using your favorite rewards credit card more affordable.

Unused credit card rewards impact your wallet

Another way your travel credit card could cost you more money than you realize is by letting your points or miles sit unused. Some travelers hoard their credit card rewards while they continue earning more points or miles, or until they find the perfect redemption.

But hoarding your points or miles could cost you. Credit card issuers can change rewards programs anytime, meaning your points or miles could become less valuable with time. You may plan to use your rewards a certain way and later find out that redemption option no longer exists.

Even without program changes, letting your points or miles sit could cost you. As you continue paying an annual fee, you'll pay more money without receiving the intended perks. The best strategy is to use your points and miles sooner rather than later to maximize their value.

Unused benefits = wasted money

Many travel credit cards include plentiful card benefits. Not every benefit will appeal to every person, and that's OK. But make sure you're getting good value from the benefits offered. If you have a travel credit card with an annual fee and you're not using the perks provided, it may be time to explore other card options. Otherwise, you'll waste money on unused benefits.

Get the most from your credit cards

If you use credit cards of any kind, ensure you're getting good value from them. If you pay additional fees, hoard your unused rewards, or don't use most of the benefits offered, you may be paying more than you realize to use your cards. Check out our list of the best travel rewards credit cards to learn more about other cards that are a good fit for travelers like you.