Are you booking your summer vacation and wanting to make the most of summer and your credit card points? Kendall Little, senior personal finance writer for Yahoo Finance, explains the benefits of using a travel credit card and the types of travel credit cards most hotels and airlines offer.
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This post was written by Luke Carberry Morgan
Video Transcript
If you haven't yet booked your summer travel plans, it might be worth using or applying for a credit card that offers the best rewards.
But here are some tips to help you make that all-important decision about which card is best for you: Yahoo Finance's Kendall Little Kendall is here to help.
I'm glad you came to the studio.
Now, for those of you who are still planning your summer vacations, there are a variety of card options through which you can earn these rewards.
Yes, yes, that's exactly right.
When talking about travel credit card benefits, I think you should first focus on your budget and how you travel.
For example, let's say you travel a lot.
You are always busy.
Next, you might want to look for cards that offer airport lounge access or annual credits towards travel expenses.
Even if there is an annual fee, it will probably be worth the extra cost.
Additionally, looking for offers and categories related to travel, like airfare and hotel rates, can help you make the most of the costs you incur when traveling frequently.
And then on the other end of the spectrum, there are people who are new to travel rewards and only travel once or twice a year.
In that case, you may be better off with a card that offers actual rewards based on your everyday spending and has a low or no annual fee.
That means groceries and gasoline.
You can then collect points and miles throughout the year and redeem them for cash when you actually travel.
And finally, there are those types of travelers who always fly with the same airline.
Perhaps they live in a central city or always travel with the same hotel chain.
In that case, you may want to consider a co-branded card.
And that co-branded card gives you rewards in the travel brand’s actual loyalty program.
That might mean earlier check-in at a hotel or priority boarding on an airline, and earning those perks within a loyalty program can help you reach elite status faster.
So I think it's really important to consider what type of travel you're comfortable with and your budget.
