Best Travel Credit Cards for Beginners

As wonderful as traveling may be, it can often be an expensive endeavor. This is where travel credit cards come into play. Thanks to these kinds of cards, you can earn points and miles on everyday purchases, which can then be redeemed for such rewards as flights and hotel rooms. Choosing the best travel credit card as a beginner can, however, be a daunting choice. There is no need to panic; this guide will simplify everything for you.

From using it to maximize your rewards, to finding the best card, this article will cover everything there is for travel credit cards for beginners.

What Are Travel Credit Cards?

Before narrowing down the list of best travel credit credit cards for beginners, it would be wise to first learn what travel credit cards are and how they function.

Basic Features of Travel Credit Cards

Travel credit cards allow cardholders to earn rewards when they make purchases, which can then be claimed in the form of points, miles, or even cash. These rewards can then be redeemed for expenses related to travel and tourism activities such as:

• • Buying flight tickets
  • Reserving hotels
  • Renting vehicles
  • And other travel excursions

Types of Travel Credit Cards

There are many varieties of travel credit cards, each with unique benefits and features:

• Airline-specific cards: These cards are partnered with an airline, allowing the cardholder to gain benefits for loyalty to that airline, such as free checked bags or priority boarding. The downside, however, is that the miles accumulated can only be use on that airline for flights.

• General travel cards: Compared to prementioned airline specific cards, these types of cards are far more flexible, allowing the card holder to accrue points or miles with various airlines as well as different travel partners.

• Hotel-branded cards: Cards affiliated with hotel chains give users the ability to earn points that will grant them stays in the partnered hotels.

Why You Should Consider Travel Credit Cards as a Beginner

If you are just a beginner, you might be leaning towards thinking if getting a travel credit card is really worth your time. The answer would be yes and here are some helpful pointers as to why a travel credit card would work great for beginners.

Earn Rewards on Everyday Purchases

Many travel credit cards offer points or miles on everyday spending. For instance, rewards can be earned when purchasing groceries, getting gas, or eating out. With time, these spending add up, after which you will have enough rewards to book your stay at a hotel or flight without having to spend much extra money.

Sign-Up Bonuses

Most travel credit cards offer a sign-up bonus after you meet a minimum spending requirement. These bonuses usually vary from 20,000 to 100,000 points which can be converted into a free flight or complimentary stay at a hotel. Easiest ways to get started with earning travel rewards.

Build Credit

As a beginner, using a travel credit card in a responsible manner is a great way of starting or improving your credit score. Making on time payments and remaining within your limit shows lenders that you are trustworthy. This means better financial products could be available to you in the future.

Additional Travel Perks

Many travel credit cards also offer these added benefits:

• Free checked bags

• Priority boarding

• Travel insurance

• Access to airport lounges

What to Look for in a Travel Credit Card

The best travel cards for beginners come with great perks and rewards as well as potential limitations as well. Let’s analyze the important details you need to keep in mind.

Sign-Up Bonuses and Welcome Offers

Travel bonus credit cards are perhaps most attractive because of the bonuses that they offer. In order to fully maximize the value of these bonuses, make sure you can exceed the minimum spending limit within the required timeframe.

For instance, one example of a card would be one that offers 60,000 points if you spend $3,000 within the first 3 months. This bonus can greatly assist with the costs for your first trip.

Earning Rates

The card of your choice must provide good earning rates for categories that are most important to you. Some have boosted rewards for selected categories like dining, travel, and even gas. An example of this would be:

• 3x points on travel and dining
• 2x points on groceries and gas
• 1x points on every other purchase

If you are someone who spends heavily on dining out, then a card that offers 3x points will allow you to earn rewards a lot quicker.

Annual Fees

The annual fee many travel credit cards charge can be anywhere between $0 to $500 or more. Higher annual fee cards usually come with greater rewards; however, every fee needs to be considered closely with the provided benefits. For a beginner, a lower or no annual fee card can be a more suitable option.

Foreign Transaction Fees

Avoid cards with foreign transaction fees if you are planning to travel internationally. These fees tend to charge around 2% to 3% of the total purchase value. If you plan on making foreign purchases, non foreign transaction credit cards will be beneficial.

APR and Interest Rates

Always check the APR (Annual Percentage Rate) and interest rates while selecting a travel credit card. The ideal situation is paying off the balance every month to avoid interest altogether. However, for those who carry a balance, a card with low APR interest would be more helpful.

Best Travel Credit Cards for Beginners

Knowing what to search for, let’s look at some of the best beginner travel credit cards. These cards have be exceptionally useful during the initial stages of traveling due to their low fees, great rewards and no cost effective benefits.

Chase Sapphire Preferred® Card

Sign-Up Bonus: Earn 60,000 points after spending $4,000 within the initial 3 months.

Earning Rate: 2x points on travel and dining, 1x point on all other purchases.

Annual Fee: $95.

Foreign Transaction Fees: None.

Best For: Beginners wanting a versatile card with amazing travel bonuses.

The Chase Sapphire Preferred® Card is one of the beginner level best travel credit cards. The sign-up 60,000 points bonus is enough for a free flight or hotel stay, and the 2x points for travel and dining are useful when spending as well.

Capital One Venture Rewards Credit Card

• Sign-Up Bonus: 75,000 miles after spending $4,000 in the first three months.

  Earning Rate: 2x miles for each purchase.

  Annual Fee: $95.

  Foreign Transactions Fees: None.

  Best For: New entrants looking for an uncomplicated card and prefer a flat-rate rewards system.

With the Capital One Venture Rewards Credit Card, you earn double 2x miles on every purchase, making it very easy to earn rewards. The 75,000 miles sign-up bonus is among the best in the industry, and best of all there are no foreign transaction fees which is great for international travelers.

American Express® Gold Card

Sign-Up Bonus: 4,000 within the first 6 months after spending $1,000 a month.

Earning Rate: 4x points on dining; 3x points on flight related expenses.

Annual Fee: $250.

Foreign transaction fees: none.

Best for: Food lovers and other people who travel frequently and spend a lot on dining.

If you eat out a lot, then this American Express® Gold Card is a great option for you. 4x points for dining and 3x points for flights makes this a great option for people who enjoy dining and travel. While the annual fee is greater than the other cards, it is still reasonable compared to the other benefits the card provides to the people who use them.

Discover it® Miles

Sign-Up Bonus: Discover will match all of the miles earned within the first year

Earning Rate: 1.5x miles for every dollar spent

Annual Fee: $0

Foreign Transaction Fees: None

Best For: New users seeking a straightforward card with no fees

With no annual fee and straightforward rewards, the Discover it® Miles card is great for beginners. You get 1.5x miles on every purchase, and in your first year, Discover will match all the miles you earn. This is a great promo for new cardholders.

How to Choose the Best Travel Credit Card for You

The best travel credit card will vary from person to person depending on your spending and travel goals. Here’s how to come up with a decision:

Assess Your Spending Habits

Do you spend most of your money on dining, travel, or gas? Identify a card that best fits your spending patterns. For instance, if you eat out a lot, a card that gives bonus points on dining expenses would be a good fit.

Compare Sign-Up Bonuses and Annual Fees

Although sign-up bonuses can be a great way to begin earning travel rewards, take the time to evaluate whether the card’s annual fee is justified by the rewards you will earn from it. If you’re just starting out, you will likely appreciate lower fee cards, but other cards with higher fees do include more features.

Think About Travel Perks

Common Mistakes to Avoid with Travel Credit Cards

Though travel credit cards are attractive, here are a few pitfalls to consider:

Accruing Interest by Carrying a Balance

Interest expense can easily negate the worth of your reward if you do not pay your balance. Strive to pay your balance off each month.

Not Using Rewards Before They Expire

Rewards often come with expiration dates, so check the terms of your card. To get the biggest bang for your buck, use them before their nullification date.

Overloading on Credit Applications

Your credit score can be adversely affected with too many attempts for credit. Be selective and only seek the ones you truly require.

My Opinion| Your Next Step Towards Earning Travel Rewards

If used properly, travel credit cards can give you considerable benefits especially for first-time travelers looking to build credit. Grasping its features and benefits, together with making the right choice, and utilizing your rewards maximizes their value and helps in achieving valuable vacation travel.

With the right card and responsible spending, it’s only a matter of time before you get access to free flights, hotel stays, and the chance to explore your dream vacations.