30 JUNE, 2022

Some folks only use one credit card for everything. Others use several credit cards & switch between them to get the most cashback & reward points.

Having a single credit card makes it easy to keep track of spending & manage obligations.

Further, it might be enough if the card has a good rewards programme.

Meanwhile, having various credit cards has the advantage of allowing one to take advantage of different benefits.

Holding numerous cards can also allow greater flexibility in handling various bills and their specific due dates. One card that has evolved is travel credit cards.

These cards, together with co-branded cards, like airline or hotel-branded cards, have changed the landscape of credit card reward points, making them more unique than their general rewards counterparts.  For example, Kotak IndiGo Ka-ching 6E Rewards XL Credit Card or Kotak IndiGo Ka-ching 6E Rewards Credit Card are great options.

Thus, it is crucial to select the best travel credit card in India.

 

What exactly is a travel credit card, and how does it function?

A travel credit card is a reward card designed exclusively for travellers.

The best travel credit cards are the ones that offer rewards for spending money on travel-related purchases.

These cards can be used on hotels, flights, cruises, auto rentals, and restaurants, among other places.

Frequent travellers who wish to save money on future travels will benefit from travel credit cards.

A regular credit card offers cashback or points that can be used for gift cards, items, or savings. The perks of a travel credit card are exclusive to travel.

Each credit card company’s schemes are a little different, but they generally get points for every rupee spent on a card.

Spending on qualified products like airline tickets, hotels, and other travel expenses can usually earn a person bonus points or miles.

When the person has collected many points/miles, they can put them toward an airline ticket or a hotel stay or transfer them to a partner hotel or airline rewards scheme.

They can efficiently build up to a free getaway by travelling and paying.

 

Pros of travel cards

A few pros of using the best travel credit card are:

  • To fulfil the needs of frequent travellers, travel credit cards provide a variety of features and benefits.

The list goes on and on, with everything from welcome packages to limitless access to airport lounges and fee discounts.

  • Most travel credit cards offer loyalty points or airline miles as a welcome gift or sign-up bonus. For example, Kotak IndiGo Ka-ching 6E Rewards XL Credit Card offers a welcome ticket worth Rs 3000 and several benefits for customers preferring Indigo Airlines as their travel partner.

Air miles can be traded for points on domestic and international airlines. Some travel cards also come with free tickets on specific airlines.

  • By using a travel card, a person can avoid carrying around extra money for trips.
  • Since most travel cards do not charge international transaction fees, customers will save money when travelling abroad.
  • Several travel credit cards include a full insurance policy that covers the cardholder against unexpected costs incurred from an airline accident, medical problem, baggage loss, passport or ticket loss, etc.
  • Many credit card providers have partnered with major airline companies to offer clients exclusive privileges.
  • A travel credit card can be an essential part of a traveller’s budget.

Not only do they keep track of all of their spending, but they also provide some great perks that save money.

 

Types of travel credit cards

A travel credit card allows accumulating points or miles that one may spend for things like commuting, shopping, & ATM withdrawals.

Travel cards come in a variety of sizes and formats, each with its own set of features.

 

  1. Airline credit cards

An airline and a credit card provider work together to create airline credit cards.

Spending money can earn cardholder points or miles that can be redeemed for free flights on that airline and as travel privileges such as priority boarding, waived baggage costs, and access to airport lounges.

These can be a nice alternative if cardholders frequently fly with a single airline.

 

  1. Hotel credit cards

A hotel chain and a credit card business collaborate on these cards.

Late check-outs, complimentary breakfast, and hotel upgrades are just a few of the goodies that come with earning points.

 

  1. General travel cards

These sorts of travel cards give points or miles that can be used for cashback on travel and other purchases.

The miles can then be used for travel by cardholders.

These cards have the advantage of not requiring the cardholder to be a frequent flyer or hotel guest to receive points.

 

What factors should you consider while selecting a travel credit card?

When looking for the best travel credit card, keep these factors in mind.

  • A travel rewards card will frequently get one started faster by offering a set number of points or credits if they spend a certain amount within the first few months of opening their account.

A larger sign-up bonus may assist them in paying for their impending vacation.

  • While a few travel credit cards do not have an annual cost, some do.

Annual charge cards tend to feature great perks and may earn back rewards faster, but make sure to use them to justify the fee.

  • Different credit cards have different rewards schemes or ways to earn bonus points for travel spending.
  • Non-travel-related bonus categories, like dining or grocery store expenditures, may be included in a card’s benefits.

So, one will need to assess their spending habits and select a programme that best suits their needs.

  • Some credit cards may include benefits like tour cancellation and delay insurance and also rental car insurance.
  • Airline or hotel credit cards, for example, may grant cardholders access to elite programmes that provide benefits such as seat upgrades or access to lounges.
  • See if any of the additional features and premium rewards offered by travel credit cards spark your attention.

 

Conclusion

If cardholders regularly find themselves on the road or making various purchases that they can later expense, a travel credit card is a great way to save time and money.

The best place to start the search is an online comparison.

There, they can seek information about interest rates, perks, fees, etc., for a range of travel cards offered by some of the most popular financial institutions in the country.

Once they have done that research, only then do they need to start thinking about applying for one of these cards to reap the rewards of their efforts in finding the perfect travel credit card for themselves.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.