As many of you know, I love credit cards. I often have as many as 6-10 in my wallet at a time. There are a variety of reasons as to why I love credit cards and the top reason is due to the reward points you can earn with them. I’m known as a travel hacker, meaning I utilize credit cards to rack up frequent flyer miles and reward points and then use them on incredible trips around the world. However, I also love credit cards because they make it easy to keep track of expenses, come with travel insurance and other benefits, and keep my pockets free from loose change.
Not all credit cards are created equal though, and so I thought I’d share some tips for finding the best one for you.
How To Find The Perfect Travel Credit Card
Not all credit cards are created equal and not all cards will be a great match for your needs. I should also mention that you can hold more than one if need be. I often carry upwards of 10 different credit cards, mainly because I like to maximize my travel points. At the same time, I never spend more than I have. In fact, this is important. If you can’t pay off your balance in full each month, I would stay away from credit cards as the interest will quickly deflate the value of your points and cause a lot of stress in your life.
What Type of Points Do You Want to Earn
Even when it comes to travel points, there are different types of points you can earn. For example, if you want to fly with a particular program, you’d want to earn with that program. If you want maximum flexibility, you might want to earn with American Express Rewards, which allows transfers to many different airline and hotel programs. For me, I use Aeroplan a lot, which means I apply for Aeroplan-affiliated credit cards as well as AMEX cards because they transfer to Aeroplan on a 1 for 1 basis as well as other programs should Aeroplan not be satisfactory. Travel points, when used correctly, offer the best value for credit card rewards, and if you get creative, you can use them to get free stopovers, open-jaws, and business class flights. There are far too many cards to list here but you can click here to compare travel rewards cards to find the right option for you.
Determine Other Credit Card Features that are Important to You
Would you like to have comprehensive travel medical insurance or rental car insurance with your credit card? Would you like access to a personal concierge service that can help book travel for you? Do you want access to airport lounges around the world? These are all services that come with various credit cards but it’s up to you to determine what you want or need as not all credit cards are alike. The more features a card has, the higher (usually) the annual fee will be.
Do You Want an Annual Fee
Many of the best credit cards have an annual fee but depending on your goals and your use of the card, a fee may or may not be worth it. Some fees are as low as $75 per year while others can be as high as $700! For example, the American Express Platinum Card has a fee of $700 annually but comes with Priority Pass VIP lounge access, a $200 travel statement, and up to 60,000 bonus points! There are tons of insurance features as well. However, if you don’t travel often, is it worth it? If you’re goal is to earn as much points as possible, chances are that you’ll have to have a card with an annual fee, but even many of these cards have promotions from time to time where they waive the first year fee, giving you time to test it out and see if it fits your lifestyle.
One of my favorite cards is the American Express Gold Card, which is only $150 annually and also comes with important travel features such as medical and car rental insurance. American Express Reward Points are great as well because they can be transferred to a number of frequent flyer mile programs, giving you a lot of flexibility.
Apply For the Card!
Depending on the card you choose, there may be different eligibility requirements. If you believe you meet the requirements, you’ll have to apply and see what happens. I’ve often applied for cards that require a higher income than I make, but thanks to a high credit score, I often get approved. Please note: From what I’ve heard (and I’m not an expert), applying for credit cards within six months of applying for a mortgage is not a good idea. It’s also typically better to apply for many at the same time versus applying for many throughout the year. If you’re only applying for one, don’t worry about it. You’ll typically lose a few credit score points when applying for a card but will regain them rather quickly. In fact, my score has gone up drastically since learning about travel hacking.
Earn Travel Rewards
The best part about travel credit cards is that you earn points for everyday purchases such as groceries, fuel, phone bills, and more. There’s no cost to using the card and the convenience of not carrying a wallet full of change is great. It also allows you to keep track of your expenses quite easily. For me, it’s a no-brainer BUT a credit card is only a good idea if you pay it off each and every month. The interest rates are WAY TOO HIGH to hold a balance. However, if you’re smart about using it, you’ll quickly see the value that can be created!
Earn Free Flights Around the World
If travel is your thing and you’re interested in learning everything you need to know about maximizing credit card usage and earning hundreds of thousands of miles for free flights, consider joining Canadian Free Flyers. For as little as $47, you can learn about utilizing frequent flyer miles to travel around the world for almost free. If you’re from the USA, I’ve created a course for you as well. It’s called Zero to Dream Trip and it will teach you everything you need to know to start traveling the world for next to nothing.
Bonus Tip: American Express has an incredible rewards program and by-far one of the best credit cards in Canada. The best offer now for someone just getting into the world of frequent flyer miles is the American Express Gold Card. I have one and highly recommend it. Apply here and get 25,000 bonus points, enough for a free flight within Canada and the USA.
Questions? Let me know in the comments below…