Travel credit cards: what are their benefits and how to avail of them?

In the world of unprecedented digital banking, credit cards are among the most preferred financial tools. They come with exclusive rewards and discounts on a variety of brands and merchants. Furthermore, these cards offer a variety of travel benefits, including flight ticket discounts, hotel booking discounts, and airport lounge access for a hassle-free travel experience.

A travel credit card provides you with numerous benefits on your vacations and trips. Let us discuss the advantages of travel credit cards and how to take advantage of them.

What is a travel benefit credit card?
 

Providing customer-oriented services is one of the reasons banks and financial institutions continue to innovate their credit cards. Banks offer customers a variety of shopping, lifestyle, entertainment, and travel credit cards based on their spending habits. Travel credit cards offer a range of privileges if you're a frequent flyer.

Generally, travel credit cards offer exclusive offers on travel and hotel bookings, access to railway and airport lounges, trip accidental coverage, and more. Using these travel benefits, you can enjoy your trips stress-free and save money too.

However, travel credit cards may have higher fees than standard credit cards. If you're seeking an affordable credit card with attractive travel benefits, consider the IDFC FIRST Wealth Credit Card, which offers compelling rewards and discounts on your travel expenses. For individuals with an annual income of ₹10 lakhs or more, IDFC FIRST Bank has introduced two metal credit cards – Ashva and Mayura – that also provide enticing travel perks. Travel benefits offered by these cards primarily include low or zero foreign exchange markup fees, domestic and international airport lounge access, railway lounge access, travel insurance, and more.

Advantages of travel benefit credit cards

The benefits of travel credit cards vary from bank to bank, and you need to choose one that suits your expenses. Here are some common benefits of travel credit cards.

·  Airfare discounts
 

Travel credit cards offer lucrative discounts on domestic and international flight tickets. You just need to look for offers online using your credit card account or use a third-party travel app.

· Access to airport and rail lounges

The majority of travel benefit credit cards provide exclusive access to airport lounges and railway lounges. You can enter them for free with a specific travel card. However, free access may be limited.

· Complimentary travel insurance and accident cover

Several credit card issuers also offer complimentary travel insurance and accidental cover when you book a travel ticket using their credit cards.

· Low markup fee on currency exchanges

When using foreign currency abroad, you need to pay a markup fee during currency exchange. However, travel credit cards levy low charges on currency exchanges to offer better savings when travelling abroad.

· Luxury hotel collection

Using a travel credit card, you may get discounted hotel rates. In addition, several hotels also offer complimentary nights on your stay if you use a travel credit card. However, ensure the applicability of these offers before booking.

Downsides of travel credit cards
 

Most travel credit cards have more advantages than disadvantages. The most common drawbacks are as follows:

· They are more expensive than standard credit cards. However, a few banks such as IDFC FIRST Bank offer zero annual fees on this type of credit card.

· The eligibility criteria for these cards are not as lenient as other credit cards and, you may need to have a higher income and finances.

· The approval for travel benefit credit cards also depends on your credit history and score, which is why you need to maintain a decent CIBIL score.

If you travel frequently, a travel credit card is the best option. You get attractive offers on bookings, low forex markup fees and tickets, and added security through travel and accident insurance. However, be sure to read the card issuer's terms and conditions before applying.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.