Traveling doesn’t mean you can’t make use of your rewards credit card, earn points, or enjoy bonuses like airport lounge access, travel insurance, and other travel perks. However, for some people, paying high fees does not make sense. Travel credit cards without fees resolve this issue effectively. These cards allow travelers to earn points, miles, or even cash rebates on travel purchases, and avoid the hassle of paying fees. These credit cards will help you keep your costs in check, especially if you travel often.
What Are No Annual Fee Travel Credit Cards?
As the name suggests, these no travel fee credit cards are meant to help travelers make and earn bonuses on their travel purchases, or other travel related purchases without the cost of annual maintenance fees these premium travel cards typically charge.
No travel fee cards can be more basic, still, they allow you to earn good rewards on your everyday and travel related purchases. Travel prepaid and general cards allow you to earn in specific travel categories as well, these can be redeemed later for discounted travel, upgrades, or travel statement credits.
Benefits of Not Paying an Annual Fee on Travel Credit Cards
The most important benefit of using a travel credit card with no annual fee is the cost savings. For infrequent travelers, fees which can be as high as
95to95to500 or more on premium travel cards can be a significant drag on your rewards. Earning rewards is a yearly cost of no annual fee travel credit cards. The appeal of no fee travel credit cards is for beginners who want to test the waters of travel rewards cards. Additionally, there is no annual fee, which means you can keep the card for a long time, which can also benefit your credit score.
How no-fee Travel Credit Cards Work
No-fee Travel Credit Cards are simply more economical versions of regular Travel Credit Cards. These no-fee versions still allow customers to earn Travel Rewards each time the Card is used to make eligible purchases such as airline tickets, hotel stays, and restaurant bills. Travel Rewards can be redeemed for travel expenses–air tickets, hotel bundles, and car rentals. Certain Cards also allow redeemed Travel Rewards to be used as statement credits or gift cards. Although no-fee Cards lack costly amenities such as airport lounge access and travel concierge, no-fee Cards offer everyday practical and rewards that are economical for the adult, leisurely traveler.
Most Important Features of a no-fee Travel Credit Card
Several of a Travel Credit Card’s features can really make a difference. An excellent no-fee Travel Credit Card allows customers to earn rewards on everyday purchases at a fair rewards rate, has a flexible redemption approach, and even a welcome offer. Certain no-fee Travel Credit Cards are even more helpful for the adult traveler as they offer airline travel accident insurance, no-fee international car rentals, and no foreign transaction fees. To maximize rewards, customers should be able to transfer their earned redemption rewards to the airline or hotel partnerships.
Popular No Annual Fee Travel Credit Cards Examples
The Chase Freedom Unlimited and the Wells Fargo Autograph Card offer benefits for no annual fee travel credit cards, allowing cardholders to earn rewards on travel, food expenditures, and general purchases without an annual fee. Cardholders of the Bank of America Travel Rewards Card earn 1.5 points for every dollar spent on all purchases, and the points never expire. The Discover it Miles Card is another no annual fee travel credit card with good benefits, providing unlimited 1.5 miles for every dollar spent on all purchases and doubling all earned miles for the first year. These examples show that travelers can greatly benefit each year without paying an annual fee.
Advantages of Travel Credit Cards Without Annual Fees
These Cards affordability is one of the most important benefits. Travel reward programs can now be enjoyed at no additional cost. You can earn bonus points and bonus miles on these cards and redeem them for travel without the concern of meeting an annual fee. Many of these cards have no foreign transaction fees either. This can yield savings for international travelers. There is also the benefit of no fee cards in terms of access. No fee cards are usually less riskier to approve and therefore to get than most premium cards which is an advantage for people in the process of establishing or rehabilitating their credit.
Getting the Most Out of the Card
To benefit from the no annual fee travel credit card, you must strategize. Concentrate your spending on the highest earning categories, which include travel bookings and dining. When redeeming rewards, cashing in on travel earns you the most rewards. You can enhance your earnings potential by pairing your no annual fee travel card with another rewards card from the same issuer. For instance, no annual fee card on everyday purchases and premium travel card on large travel expenses allow you to maximize savings, flexibility and your earnings potential.
Differences Between No Annual Fee and Annual Fee Travel Cards
No annual fee travel cards are great for infrequent travelers, but premium travel cards with annual fees often come with more substantial perks like checked bag fee waivers, lounge access, and more rewarding point earning potential. If you travel often, and are capable of maximizing the benefits of these cards, the value of a premium card is justified in the long run. No annual fee cards are great for infrequent travelers, as they offer the same benefits and rewards with less ease. Knowing your travel habits, along with your financial needs, determines the best card for you.
Credit Score Requirements
Approval for most no annual fee travel credit cards requires a credit score of roughly 670, or “good” credit. Some issuers offer no annual fee travel credit cards with fair credit as well. Good credit is defined as a history of on-time payments and low credit account utilization, meaning low debt. Using a no annual fee travel credit card and paying the monthly balance in full will improve your credit profile, and strengthen your chances of approval for travel cards with annual fees in the future.
The Significance of No Annual Fee Travel Credit Cards in Credit Building
Responsible use of travel credit cards has a positive impact on credit scores. Lenders see the use of the card and timely payment as reliable credit behavior. Having a card with no annual fee also means that you can keep it open for a long time which in turn helps in the building of credit history. Also, keeping a low balance on the card and paying most of it helps keep the balance and credit limit ratio low which also helps in scoring. Over time, these actions help in acquiring favorable terms on loans and access.
Avoiding the Common Missteps with Travel Credit Cards
Travel credit cards with no annual fee help in building credit but you must ensure they are not misused. High outstanding balances and late payments quite clearly take the rewards and credit negative. Also, some users tend to lose travel opportunities by not redeeming rewards in travel or letting them expire. It is best to familiarize with the terms of the card, the reward expiration, and scheduling timely payments. It is best to treat the travel credit card as a debit card where you spend only what you can repay. This helps in keeping financial control.
Conclusion
For travelers, no annual fee travel credit cards offer rewards with almost no consequences. These allow travelers to earn miles or points with every purchase and allow them to do it without having to worry about owing money at the end of the year. These cards are perfect for casual travelers, people with very tight budgets, and beginners trying to establish credit for the first time.
By picking the most fitting card, keeping it uncomplicated, and using rewards strategically, one may realize the most rewarding and inexpensive travel. Whether you are visiting a city or going on a family holiday, a no annual fee travel credit card allows you to earn rewards on every dollar spent and gets you a step closer to your travel goals.