When you are planning for a travel vacation, there are several reasons why you should go with a good travel credit card. There are some monetary benefits involved and some matters of backup too especially in crisis situations abroad.
Your credit card will help you spend without carrying wads of cash in your pocket. For matters of sheer safety this is much better than carrying money with you or a debit card, especially when you are travelling in places which aren’t really safe. A single credit card would lower the burden in a great way.
You can use your credit card to spend at most reputed hotels, restaurants and entertainment arenas. So you don’t really have to pay high commissions for foreign exchange. Most credit cards will charge you 3% as currency conversion fee when you spend on your credit cards abroad. However, there are some credit cards which charge you just 1% to cover for what payment processing networks like Visa and MasterCard charge. There are some card companies which waive off the fees completely and pay the 1% from their own pocket. Whatever be the scenario, you stand to gain as it makes things much easier for you.
No one replaces stolen cash. But good credit card companies have a hotline where you can call as soon as your card is lost or stolen. The card is blocked immediately and within a couple of days’ time you would receive a replacement card. To ensure you aren’t stuck without cash, some card companies even give you spare cash while your credit card replacement arrives. This is highly convenient especially when you are travelling abroad.
Some of the travel cards have different types of coverage for the benefit of the customer. You get travel accident insurance as well as lost baggage reimbursement in most cases. Some cards also have trip cancellation insurance that covers for the losses suffered by you due to trip cancellation.
Travel credit cards allow you to benefit from discounts on your hotel bills, restaurant bills as well as entertainment expenses. In some cases, you are allowed to get these discounts by redeeming your reward points that you have accumulated over a period of time. You can also redeem these points for discounts on your air ticket.