Accelerated rewards on travel, complimentary lounge access, air mile earning, and co-branded benefits with airlines and travel partners are just some of the perks offered by travel credit cards. Only people who frequently travel for either business or pleasure should apply for one of these cards. We’ve compiled a list of the top credit cards in India that offer bonus points or other perks for making purchases abroad.
Top Indian Credit Cards for International Travel in 2023
Find out how to get the most out of your travel dollar by reading about the 10 best travel credit cards in India.
Credit Card with Citi PremierMiles
Cost per year: Rs.3,000
The cost to renew is Rs. 3000.
Travel Perks: Get 10,000 Bonus Miles When You Spend Rs. 1,000 in the First 60 Days.
Bonus miles of 10 miles for every Rs. 100 spent on airline purchases and 4 miles for every Rs. 100 spent on the PremierMiles website.
Unlike other forms of currency, accumulated airline miles never expire.
Each quarter, you are entitled to eight free visits to any domestic lounge.
Approximately INR 1,000,000 in case of an airline accident
The Citi PremierMiles Credit Card is an excellent choice for frequent fliers looking to maximise their air mile rewards. Unlike popular co-branded cards, which only offer benefits with one airline, the miles earned with this card can be redeemed across a number of different airlines. Additionally, your accumulated air miles will never expire, allowing you to save up thousands of miles for future use. The bonus of 10,000 initial Miles is a nice touch. Since the value of these miles is Rs. 4,500, this benefit is generally fair in comparison to the Rs. 3,000 joining fee. After paying the annual renewal fee, you will receive 3,000 bonus miles.
The foreign exchange markup is quite high (3.5%), and the card does not provide access to international airport lounges, so it may not be the best option if you are trying to save money on international purchases. Because of its limited dining, shopping, and entertainment perks, Citi PremierMiles is, above all else, a travel credit card. This card can be ideal if you frequently fly within the United States and would like to save money on airfare (or even get free flights occasionally).
ELITE SBI Card
Charge per year: $49.99
Price of renewal is Rs. 4,999
Perks for Travel: Rs. 5,000 Welcome Voucher to Use on Yatra.com
A low 1.99% spread on currency trades
One complimentary upgrade voucher and a Silver Club Vistara membership
On Vistara Flights, you can earn 9 miles per rupee spent.
Membership in the Trident Privilege Red Tier at no cost, plus 1,000 bonus points when you sign up
Membership in Priority Pass and six visits to any participating international lounge each calendar year, free of charge
Twice as many visits to the Airport Lounge at no charge per quarter
The SBI Card Elite is a high-end multipurpose card that can be used for airfare, hotels, and movie tickets. This card is one of the best travel credit cards because it can help you save money while you’re away from home. The card has a yearly fee of Rs. 4,999, but new cardholders get a Rs. 5,000 welcome voucher that can be used toward Yatra travel.
In addition to the perks of flying with Vistara, the card comes with a free Silver membership to Club Vistara. The card grants free access to lounges around the world through Priority Pass and around the country through Visa and Mastercard. The card also provides hotel perks, though they are exclusively for use at Trident Hotels.
On purchases made at restaurants, supermarkets, and department stores, the cardholder will earn five times the normal number of reward points. The card offers 2 reward points for every Rs. 100 spent on everything other than fuel. However, the value of the rewards is quite low: 1 point equals Rs. 0.25.
When compared to the standard markup of 3.5% or more on other cards, the 1.99% fee charged by SBI Elite for forex transactions is a significant savings for those who plan to use their card abroad. If you’re looking for a travel card with benefits in other categories as well, this one might be a good option because of the card’s overall travel-oriented benefits.
HDFC Regalia Credit Card
The annual fee for the HDFC Regalia Credit Card is Rs. 2,500.
Fee for renewal is Rs. 2,500.
Enjoy 12 complimentary visits to lounges across India on your next trip.
6 Lounge Accesses Outside of India
Special Treatment The Primary Member and Any Additional Members Are Welcome to Join
Discounted 2% spread on foreign currency transactions
Smartbuy allows you to redeem points for travel and lodging at a rate of 1 point = Rs 0.50.
You can exchange points for miles at a rate of 1 point for every half mile flown.
The HDFC Regalia credit card is highly regarded in India. For frequent fliers and people who like to splurge, this is the best option. Regalia offers frequent fliers six visits to international lounges per year, in addition to twelve visits per year to domestic lounges. This card has a low foreign exchange markup fee of just 2%, making it ideal for frequent international explorers. The markup for foreign exchange transactions is typically 3.5 percent or more; only a handful of cards offer a lower rate. It includes HDFC Regalia as one of the options. Furthermore, when you reach certain financial goals, you will receive generous bonus rewards.
You won’t find a better reward earning rate than the 2.67% that comes standard with this card from any other financial institution. However, the coupon rate is only 0.5%. With a total of Rs. 15,000 spent, you will earn 400 reward points, each of which is equivalent to Rs. This card is best for those who do a lot of shopping and travel throughout the year.
Diners Club Privilege credit card
The annual fee for using a Diners Club Privilege credit card issued by HDFC Bank is Rs.2,500.
Fee for renewal is Rs. 2,500.
Benefits for Vacationing: One Year Free Membership to MMT BLACK
Commission on foreign currency transactions that is 2% lower than the market rate
SmartBUY travel bookings (up to 70% of the value) with reward points
Primary and secondary members receive complimentary airport lounge access to a network of more than a thousand lounges in India and around the world when they earn 5X reward points on SmartBUY purchases.
One Reward Point is equivalent to half an AirMile on InterMiles, Singapore Airlines (KrisFlyer Miles), and Club Vistara.
The HDFC Diners Club Privilege credit card is a mid-tier option with a variety of travel and lifestyle perks. Access more than 1,000 airport lounges worldwide on as many as 12 separate occasions per year without having to sign up for a Priority Pass membership, as is the case with most other credit cards.
Through the Smartbuy platform, cardholders can transfer reward points to airline miles and then use those miles to purchase plane tickets. The same system can be used to book hotels with reward points. This card may be useful if you plan to indulge in high-class vacationing and lodgings. Because of the card’s potentially advantageous returns, especially for high-spending customers, the rewards earning rate is quite impressive for this fee range.
SBI Signature Credit Card
The yearly fee for using an SBI Credit Card with an Air India Signature design is a mere $499.
Price of renewal is Rs. 4,999
Perks of Traveling: a Free 20,000 Reward Points
Gain up to 1,000,000 points per year in rewards.
For every Rs. 100 you spend on Air India tickets, you can earn up to 30 points.
Per year, you’ll get eight passes to exclusive VISA lounges (max. 2 per quarter)
Up to Rs. 1 lakh in lost card liability protection
Invoices between Rs. 500 and Rs. 4,000 are exempt from a 1% fuel surcharge.
If you frequently fly with Air India, you should consider applying for the SBI Air India Signature credit card, one of the best travel credit cards in India. At the most fundamental level, you’ll rack up 4 percent reward earnings and the same number of Air India Miles for every point you put in. If you spend over Rs. 20 million per year, you will earn up to 1 lakh reward points, which are equal to 1 lakh Air India Miles and can be redeemed for multiple free flights. You can use your rewards points for anything in the rewards catalogue, not just air miles, which is another perk.
However, due to the card’s co-branding with Air India, its benefits are limited to that airline. Therefore, if you are undecided as to whether or not you will primarily use Air India, you should look into other travel credit cards for general travel benefits, such as the MakeMyTrip ICICI Bank Signature Credit Card.
Vistara Signature Credit Card
The annual fee for using a Vistara Signature Credit Card from Axis Bank is Rs.
The cost to renew is Rs. 3000.
Among the benefits is a one-time complimentary upgrade to business class.
You’ll earn 4 Club Vistara points for every Rs. 200 you spend.
Spending bonuses of up to four Premium Economy tickets per year and additional CV points for doing so.
Purchase protection up to INR 1,000,000 and air accident coverage of up to INR 2.5 CRORES
Protects you from losing as much as your card’s credit limit if it’s lost or stolen
Those who routinely fly with Vistara Airlines will benefit from using the Axis Bank Vistara Signature Credit Card. As much as 2% of your purchase price back in Club Vistara Points, good for airfare discounts and even free flights. The card’s milestone benefits are great, and they increase the more you use it and spend. Depending on your annual spending, you may be eligible for up to four premium economy tickets.
Since the total payable amount on long-haul flights is greater than that on short-haul ones, long-haul flights will earn more rewards. In addition, Silver Club Vistara membership benefits include travel insurance and reduced greens fees. When comparing rewards, the Vistara Signature Card is a clear winner over the Axis Vistara Platinum Credit Card. This card is a good investment if you frequently use Vistara as your preferred airline.
Accelerated rewards on travel, complimentary lounge access, air mile earning, and co-branded benefits with airlines and travel partners are just some of the perks offered by travel credit cards. Only people who frequently travel for either business or pleasure should apply for one of these cards. We’ve compiled a list of the top credit cards in India that offer bonus points or other perks for making purchases abroad.
The Best 10 Indian Travel Credit Cards
An Annual Fee Credit Card Is Your Best Option
Our Evaluation
One Air Mile Is Worth Three Thousand Indian Rupees With Citi PremierMiles
4.50 out of 5 stars for the SBI ELITE Card’s comparatively low forex markup of Rs. 4,999
HDFC Regalia, 4.5 out of 5 stars
Rs.2,500 Points-Based Travel Booking Fee
HDFC Bank Diners Club Privilege, 4.5/5
Rs.2,500 Points-Based Travel Reservations
Rating: 4.5/5 – Air India For just Rs. 4,999, you can get access to the SBI Signature Co-branded benefits (Air India). Co-branded benefits (Vistara) worth Rs. 3,000 from Axis Bank, earning it 3.5 stars. 3.5/5 \sIntermiles The HDFC Signature Bonus Miles Reward Program provides a 2,500 Rupee ($45) Credit. 3.5/5 \sMakeMyTrip Benefits with the ICICI Bank Signature Logo (MakeMyTrip) Nil Premier Railway Bookings with IRCTC SBI Card for Rs. 1,499 (3.5/5) The Yatra SBI Card’s co-branded perks (Yatra) are worth the extra Rs 499. 3/5
If you’re looking for the top travel credit card in India, then apply for one here for the year 2023.
Find out how to get the most out of your travel dollar by reading about the 10 best travel credit cards in India.
Credit Card with Citi PremierMiles
Cost per year: Rs.3,000
The cost to renew is Rs. 3000.
Travel Perks: Get 10,000 Bonus Miles When You Spend Rs. 1,000 in the First 60 Days.
Bonus miles of 10 miles for every Rs. 100 spent on airline purchases and 4 miles for every Rs. 100 spent on the PremierMiles website.
Unlike other forms of currency, accumulated airline miles never expire.
Each quarter, you are entitled to eight free visits to any domestic lounge.
Approximately INR 1,000,000 in case of an airline accident
The Citi PremierMiles Credit Card is an excellent choice for frequent fliers looking to maximise their air mile rewards. Unlike popular co-branded cards, which only offer benefits with one airline, the miles earned with this card can be redeemed across a number of different airlines. Additionally, your accumulated air miles will never expire, allowing you to save up thousands of miles for future use. The bonus of 10,000 initial Miles is a nice touch. Since the value of these miles is Rs. 4,500, this benefit is generally fair in comparison to the Rs. 3,000 joining fee. After paying the annual renewal fee, you will receive 3,000 bonus miles.
The foreign exchange markup is quite high (3.5%), and the card does not provide access to international airport lounges, so it may not be the best option if you are trying to save money on international purchases. Because of its limited dining, shopping, and entertainment perks, Citi PremierMiles is, above all else, a travel credit card. This card can be ideal if you frequently fly within the United States and would like to save money on airfare (or even get free flights occasionally).
Elite Credit Card from SBI
Charge per year: $49.99
Price of renewal is Rs. 4,999
Perks for Travel: Rs. 5,000 Welcome Voucher to Use on Yatra.com
A low 1.99% spread on currency trades
One complimentary upgrade voucher and a Silver Club Vistara membership
On Vistara Flights, you can earn 9 miles per rupee spent.
Membership in the Trident Privilege Red Tier at no cost, plus 1,000 bonus points when you sign up
Membership in Priority Pass and six visits to any participating international lounge each calendar year, free of charge
Twice as many visits to the Airport Lounge at no charge per quarter
The SBI Card Elite is a high-end multipurpose card that can be used for airfare, hotels, and movie tickets. This card is one of the best travel credit cards because it can help you save money while you’re away from home. The card has a yearly fee of Rs. 4,999, but new cardholders get a Rs. 5,000 welcome voucher that can be used toward Yatra travel.
In addition to the perks of flying with Vistara, the card comes with a free Silver membership to Club Vistara. The card grants free access to lounges around the world through Priority Pass and around the country through Visa and Mastercard. The card also provides hotel perks, though they are exclusively for use at Trident Hotels.
On purchases made at restaurants, supermarkets, and department stores, the cardholder will earn five times the normal number of reward points. The card offers 2 reward points for every Rs. 100 spent on everything other than fuel. However, the value of the rewards is quite low: 1 point equals Rs. 0.25.
When compared to the standard markup of 3.5% or more on other cards, the 1.99% fee charged by SBI Elite for forex transactions is a significant savings for those who plan to use their card abroad. If you’re looking for a travel card with benefits in other categories as well, this one might be a good option because of the card’s overall travel-oriented benefits.
HDFC Credit Card
High-Definition Finance Corporation Credit Card, Regalia
Financial Institution of HDFC Credit Card, Regalia
A yearly subscription will set you back Rs.
Fee for renewal is Rs. 2,500.
Enjoy 12 complimentary visits to lounges across India on your next trip.
6 Lounge Accesses Outside of India
Special Treatment The Primary Member and Any Additional Members Are Welcome to Join
Discounted 2% spread on foreign currency transactions
Smartbuy allows you to redeem points for travel and lodging at a rate of 1 point = Rs 0.50.
You can exchange points for miles at a rate of 1 point for every half mile flown.
The HDFC Regalia credit card is highly regarded in India. For frequent fliers and people who like to splurge, this is the best option. Regalia offers frequent fliers six visits to international lounges per year, in addition to twelve visits per year to domestic lounges. This card has a low foreign exchange markup fee of just 2%, making it ideal for frequent international explorers. The markup for foreign exchange transactions is typically 3.5 percent or more; only a handful of cards offer a lower rate. It includes HDFC Regalia as one of the options. Furthermore, when you reach certain financial goals, you will receive generous bonus rewards.
You won’t find a better reward earning rate than the 2.67% that comes standard with this card from any other financial institution. However, the coupon rate is only 0.5%. With a total of Rs. 15,000 spent, you will earn 400 reward points, each of which is equivalent to Rs. This card is best for those who do a lot of shopping and travel throughout the year.
Axis Bank Credit Cards
Axis-Bank-Credit-Cards-Digitally
Credit Card HDFC Diners Club Privilege
Cost is Rs. 2,500 per year.
Fee for renewal is Rs. 2,500.
Benefits for Vacationing: One Year Free Membership to MMT BLACK
Commission on foreign currency transactions that is 2% lower than the market rate
SmartBUY travel bookings (up to 70% of the value) with reward points
Primary and secondary members receive complimentary airport lounge access to a network of more than a thousand lounges in India and around the world when they earn 5X reward points on SmartBUY purchases.
One Reward Point is equivalent to half an AirMile on InterMiles, Singapore Airlines (KrisFlyer Miles), and Club Vistara.
The HDFC Diners Club Privilege credit card is a mid-tier option with a variety of travel and lifestyle perks. Access more than 1,000 airport lounges worldwide on as many as 12 separate occasions per year without having to sign up for a Priority Pass membership, as is the case with most other credit cards.
Through the Smartbuy platform, cardholders can transfer reward points to airline miles and then use those miles to purchase plane tickets. The same system can be used to book hotels with reward points. This card may be useful if you plan to indulge in high-class vacationing and lodgings. Because of the card’s potentially advantageous returns, especially for high-spending customers, the rewards earning rate is quite impressive for this fee range.
Get access to the best credit card deals from leading Indian financial institutions with a single click.
SBI Signature A Signature Credit Card from SBI
Charge per year: $49.99
Price of renewal is Rs. 4,999
Perks of Traveling: a Free 20,000 Reward Points
Gain up to 1,000,000 points per year in rewards.
For every Rs. 100 you spend on Air India tickets, you can earn up to 30 points.
Per year, you’ll get eight passes to exclusive VISA lounges (max. 2 per quarter)
Up to Rs. 1 lakh in lost card liability protection
Invoices between Rs. 500 and Rs. 4,000 are exempt from a 1% fuel surcharge.
If you frequently fly with Air India, you should consider applying for the SBI Air India Signature credit card, one of the best travel credit cards in India. At the most fundamental level, you’ll rack up 4 percent reward earnings and the same number of Air India Miles for every point you put in. If you spend over Rs. 20 million per year, you will earn up to 1 lakh reward points, which are equal to 1 lakh Air India Miles and can be redeemed for multiple free flights. You can use your rewards points for anything in the rewards catalogue, not just air miles, which is another perk.
However, due to the card’s co-branding with Air India, its benefits are limited to that airline. Therefore, if you are undecided as to whether or not you will primarily use Air India, you should look into other travel credit cards for general travel benefits, such as the MakeMyTrip ICICI Bank Signature Credit Card.
Credit Card with a Signature from Axis Bank
Cost per year: Rs.3,000
The cost to renew is Rs. 3000.
Among the benefits is a one-time complimentary upgrade to business class.
You’ll earn 4 Club Vistara points for every Rs. 200 you spend.
Spending bonuses of up to four Premium Economy tickets per year and additional CV points for doing so.
Purchase protection up to INR 1,000,000 and air accident coverage of up to INR 2.5 CRORES
Protects you from losing as much as your card’s credit limit if it’s lost or stolen
Those who routinely fly with Vistara Airlines will benefit from using the Axis Bank Vistara Signature Credit Card. As much as 2% of your purchase price back in Club Vistara Points, good for airfare discounts and even free flights. The card’s milestone benefits are great, and they increase the more you use it and spend. Depending on your annual spending, you may be eligible for up to four premium economy tickets.
Since the total payable amount on long-haul flights is greater than that on short-haul ones, long-haul flights will earn more rewards. In addition, Silver Club Vistara membership benefits include travel insurance and reduced greens fees. When comparing rewards, the Vistara Signature Card is a clear winner over the Axis Vistara Platinum Credit Card. This card is a good investment if you frequently use Vistara as your preferred airline.
InterMiles HDFC Signature Credit Card
The annual fee for the InterMiles HDFC Signature Credit Card is Rs. 2,500.
Fee for renewal is Rs. 2,500.
Bonuses as high as $8,000 are available for travel. First-year InterMiles members receive Rs. 750 in discounted airline vouchers (T&C Apply)
Travel vouchers worth Rs. 2,000 off hotels for the first year (T&C Apply)
A one-year Silver membership to InterMiles as an introductory gift
If you book your Etihad Airways flight through the Intermiles website, you can save 5% on Economy Class and 10% on Business Class.
When you book your Etihad Airways flight through the Intermiles website, you’ll receive a 2.5X bonus on your InterMiles.
International lounge access with Priority Pass and up to five complimentary visits per year
People who travel frequently by air will benefit most from the InterMiles HDFC Signature credit card. You can use this card to make hotel and airfare reservations on the InterMiles website. This card also grants you up to four visits per quarter to a domestic airport’s lounge. Free Priority Pass membership includes 5 annual visits to international lounges.
When you use your card to make purchases at the InterMiles website, such as for the purchase of plane tickets or hotel rooms, you’ll earn 12 InterMiles for every rupee you spend. Moreover, for all other types of purchases made in stores, you will earn an additional 6 InterMiles. Discounts of up to 10% are available for booking first-class airline tickets, and discounts of up to 5% are available for purchasing economy-class airline tickets. Moreover, your InterMiles accrual rate is increased by a factor of 2.5.
The points earned on the InterMiles platform can be redeemed for travel on a variety of airlines and stays at hotels both within and outside of India.
However, this does mean that the user is limited to using InterMiles as their sole ticket booking option, as the points earned cannot be redeemed for any other product or service.
ICICI Bank Signature Credit Card
MakeMyTrip There is a Rs.2,500 joining fee for the ICICI Bank Signature Credit Card.
There is no yearly fee.
Free 1,500 Indian Rupees to Use on Your Next Vacation! A bonus of my cash is always appreciated.
Joining Dreamfolks gets you access to one international lounge.
Whenever you spend Rs. 5,000 in a given quarter, you’ll be given two complimentary passes to a domestic airport lounge.
quarterly complimentary entry to a train lounge
Free Rs. 3,999 worth of international roaming credit
Indulge in free MMT BLACK Members-only club
If you like to travel occasionally but never want to skimp on comfort, the MMT ICICI Bank Signature Credit Card is your best bet. The card’s welcome voucher and generous rewards system are just the beginning of what you can enjoy when you use it on MakeMyTrip. All rewards are deposited into the MMT account as My Cash, and one My Cash is equal to one rupee. You can use your MMT points to pay for airfare, hotel stays, or taxi rides.
In sum, the ICICI MMT Signature credit card is a viable financial tool for frequent travellers looking to cut back on expenses. However, it’s important to keep in mind that the card’s perks are heavily weighted toward MakeMyTrip; if you use MMT exclusively, this could be the best travel credit card for you.
Premier IRCTC SBI Card
One Thousand and Four Hundred Ninety Rupees (Rs.) Per Annum for the Premier IRCTC SBI Card
Replacement Cost: 1,499 Indian Rupees
Travel Perks: 1500 Bonus Points after Joining (at No Extra Cost)
In exchange for one Rupee, you receive one point.
10% Value Travel Credits on IRCTC Airline Categories 1, 2, 3, and CC
You’ll earn three points for every one hundred and twenty-five rupees ($3) that you spend on food and tips.
You’ll earn 2,500 points once your annual travel spending reaches Rs. 50,000, and 5,000 points once it reaches Rs. 1,000,000.
Free Rs. 10,000,000.00 worth of coverage in the event of a train accident
Air travel accident insurance worth Rs. 50 million at no cost to you
Each passenger is entitled to eight annual visits to select railway lounges.
Multiple credit cards exist to meet the needs of air travellers. A select few credit cards, however, come with perks like discounted train tickets and entry to exclusive lounges. This credit card offers substantial savings to frequent rail travellers. When you use your IRCTC SBI Card Premier to buy an aeroplane ticket, you’ll get 10 percent of your purchase price back in the form of reward points (AC1, AC2, AC3 and AC CC). In addition, if you buy your plane ticket or online catering through the IRCTC website or app, you’ll receive a 5% cash-back discount. Through the IRCTC website, you can avoid paying a transaction fee of 1% for train tickets and 1.8% for plane tickets.
This card’s perks revolve primarily around train travel, so it grants you eight annual lounge visits, two per quarter. Discounted train tickets are available to frequent fliers who also earn rewards points.
Yatra SBI Card
It costs Rs. 499 per year for a Yatra SBI Card.
Replacement Cost: 499 Rupees
Get Rs. 8,250 in Yatra vouchers good for domestic and international travel, holidays, and hotel bookings as a welcome gift.
If you spend at least Rs. 5,000 on domestic flights, you can save Rs.
Get Rs. 4,000 off your minimum purchase of Rs. 40,000 when you book an international flight.
You can save 20% on hotel stays within India with a Rs. 3,000 booking.
One percent fuel surcharge waiver at all gas stations for purchases between Rs. 500 and Rs. 3,000 made with the Yatra SBI Card Free air accident cover of Rs. 50 Lakh for the primary cardholder when the ticket is booked on Yatra.com
Although the majority of travel credit cards are geared toward providing broad travel rewards or co-branded airline perks, some cards have been introduced in partnership with specific travel websites, such as Yatra.com. The Yatra SBI Credit Card, for which the annual fee is only Rs. 499, comes with Yatra Vouchers worth up to Rs. 8,250 as a welcome offer. As an added bonus, users who book their accommodations and transportation through the Yatra website will receive a direct discount on both.
In addition, you can earn 6 reward points for every Rs. 100 you spend at supermarkets, restaurants, theatres, and department stores. As an added bonus, the primary cardholder is eligible for complimentary air accident cover of up to Rs. 50 Lakh, which is again an unusual perk for a card in this price range.
Advantages of Using a Credit Card When Traveling
Credit card issuers typically provide a variety of perks to cardholders, many of which are tailored toward travellers. Here are some of the most frequently cited advantages:
Domestic and International Airport Lounge Access is a perk of using a travel credit card. Priority Pass is the most popular lounge access programme, and a membership in it will set you back $99 in the United States. Membership in this programme and a certain number of complimentary visits to lounge partners may be offered at no cost by certain travel credit cards. Visa and MasterCard both offer their own lounge access programmes, and cardholders can use them free of charge up to a predetermined limit.
Depending on the card you have, you may be eligible for the bank’s accelerated rewards programme for travel purchases. Credit cards that specialise in travel offer bonus points for buying plane tickets or reserving a vacation package with the card. These points can be redeemed for future rewards like free flights or hotel stays.
Credit cards that are tailored toward travellers may provide an alternative to reward points in the form of air miles. You can use these miles to purchase plane tickets through the bank’s specialised travel website. Rewards points on some cards can be redeemed for flights on a specific airline, while on others, you may be able to redeem them for flights on any of their airline partners.
Several companies have introduced new travel credit cards in tandem with airlines or a travel website, offering what are called “co-branded benefits.” For instance, SBI has introduced Air India credit cards in tandem with ICICI Bank, and ICICI Bank has made available MakeMyTrip credit cards in tandem with SBI. Those who are committed to a single airline carrier will benefit the most from these cards.
Obtaining a travel voucher is another common perk of using a credit card with a focus on travel. Once you sign up or hit a certain spending threshold, the issuer will reward you with airline or travel website vouchers.
A Guide to Choosing the Best Credit Card for Your Next Trip
Finding the best credit card among all the available choices can be challenging today. In this article, we’ll go over some tips for picking the best credit card for travel.
Recognizing your typical purchases is the first step in selecting the most suitable credit card. When you have a specific goal in mind, it’s much simpler to locate a card that fits your needs.
Specifically, you should ponder the following:
Which type of credit card is better for my needs: a co-branded card or a generic one?
May I ask if you’re interested in earning frequent flyer miles?
What do I spend the most money on?
If I were given complimentary lounge access, would you recommend me to the management?
Do I really need to purchase travel insurance, and what other extras might I need?
If you answer these questions, you can eliminate some of the cards from consideration.
If you travel frequently, it’s in your best interest to get a card that grants you access to airport lounges.
Access to a lounge where you can relax and work for free is a major perk for frequent business travellers. Choose a card that grants you access to both international and domestic lounges. However, we will have to cap the total number of visits at a reasonable number. Once your allotted number of free visits has been used up, subsequent visits will cost money. However, this is not likely to change if your card issuer has signed you up for a lounge access programme like Priority Pass.
If you want a card that can be used for a variety of purposes, pick one with bonus travel rewards.
A credit card with bonus rewards for travel expenses can be useful for frequent fliers. Some of these cards also come with perks like discounts at stores and restaurants that enhance the card’s utility. You can still make good use of the card’s perks even if you don’t use it for travel very often. Moreover, its benefits increase when put to good use in the form of travel.
If you are brand loyal, you should look into purchasing a co-branded travel card.
Credit cards are also available through partnerships between card issuers and various airlines and online travel agencies, such as Air India, British Airways, Yatra, MakeMyTrip, etc. Only brand loyalists who frequently purchase flights or vacation packages should consider applying for one of these cards. Some examples of these perks include a percentage or flat discount with the brand, free travel vouchers, additional rewards, and free tickets upon joining or after reaching a certain spending milestone.
Different Credit Card Options for Vacations and Travel.
Once you’ve narrowed your options down to two or more credit cards, you can use the following criteria to compare them and find the best card for your needs.
A Cost That Recurs Every Year
The annual cost should serve as the baseline for comparison. Great travel perks on a credit card are nice, but you should weigh them against the annual fee to see if they’re worth it to you. It would not be wise to pay a ridiculously high annual fee for standard perks like airline miles and access to a domestic lounge. Pick a card with a service fee that is fair given the benefits you will receive. Some credit cards don’t charge you anything each year.
Compensations/Air Miles
Many cardholders ignore the benefits of using their credit cards. On the other hand, they bolster the advantages of having a credit card that can be used for travel. Evaluate the card’s rewards programme and the rates at which you can earn rewards or air miles. Find out how you can use your points and what you can do with them. Pick the credit card that provides the most valuable perks to you.
Gain for Joining
A sign-up bonus or welcome gift is typically offered by the card issuer when you first get the card. This perk could be in the form of airfare discounts, free hotel stays, extra bonus miles, free airline tickets, and so on for those who use a travel credit card. After refining your search results based on factors such as annual fee and rewards, you should check for a sign-up bonus. Check the sign-up bonus to see if it adequately covers the card’s joining fee. Renewing your card or hitting a spending threshold both qualify you for such perks.
Confidential Use of Lounges
In most cases, airport lounge access is included as a perk of having a travel credit card. However, different cards have different visit limits. To choose the best card, you must weigh the benefits of visiting both international and domestic lounges. We already established that frequent fliers are the only ones who can benefit from lounge visits. For someone who travels only once or twice a year, such benefits would not make much of a difference.
Other Benefits
When comparing travel credit cards, you should not just look for travel-centric privileges but also other benefits that the card would offer. For example, look for benefits related to shopping, movies, dining, golf, etc. Most of the travel cards would be from the premium category so you should also check whether concierge service can be availed on these cards.
Travel Credit Cards: Do’s and Don’ts
While travel credit cards come with multiple benefits, you should make proper use of it in order to make the most of the rewards. Here are a few do’s and don’ts:
Do’s
Understand the travel benefits on your card and plan your travel around it
Register for the lounge access programme as soon as you get the card in order to avoid any last-minute hassle
Maximize your air mile earnings by putting the highest-earning purchases on the said card
If you plan on getting a new credit card for a big travel, look for sign-up bonus and welcome gifts that help in making this trip easier for you
Redeem the accumulated rewards for travel expenses
Keep checking the expiry date of your travel rewards so that they don’t get lapsed
Don’ts
Ignore the rewards/air mile programme on the card
Use the card for cash withdrawal in a foreign country as it would incur finance charges from the day of withdrawal along with a foreign exchange mark-up fee
Keep your bills overdue as it will lead to high-interest charges which will nullify the value of the benefits that you could avail
Make big-ticket non-travel expenses on the card as when you need it for travel purposes you may not have enough credit limit available.
Use the rewards for non-travel vouchers or merchandise from the card issuer’s catalogue
