Comparing Travel Credit Cards with Regular Credit Cards for Travellers
Travelling, whether for leisure or work, is an exciting yet expensive affair for many Indians. The costs can increase quickly, from booking flights to reserving hotels and dining out. For frequent travellers, choosing the right credit card can make a significant difference in managing expenses and enhancing the travel experience. In India, credit cards are broadly divided into two categories: travel credit cards and regular credit cards.
While both serve as convenient payment tools, their benefits, features, and suitability for travellers vary widely. This article compares travel credit cards with regular credit cards, focusing on their advantages and limitations for travellers. Understanding these differences lets you decide which card aligns best with your travel needs.
Travel Credit Cards vs Regular Credit Cards: Key Differences
When you apply for credit card online frequent travellers must evaluate whether a regular or specialised travel credit card suits their requirements. Here is an in-depth look at some significant points of difference:
1. Travel Rewards and Loyalty Programs
A key distinction is that travel credit cards offer accelerated reward points on hotel bookings, airline tickets, and passenger fares, which can be redeemed for complimentary hotel nights and flight tickets. Premium travel cards also allow mile transfers to frequent flyer programs of preferred airlines or hotels.
In contrast, regular credit cards generally provide reward points for a broader range of purchases, such as groceries, utility bills, or online shopping. These points can sometimes be converted into travel-related benefits, but the conversion rates are usually less favourable than those of travel credit cards.
2. Annual and Renewal Fees
Travel credit cards levy higher annual and renewal fees due to the rich travel benefits and deals ecosystem. In contrast, regular credit cards have nominal joining and annual fees.
However, privileges like lounge access, priority boarding, upgrades, etc., defray most annual travel card costs for frequent travellers. Occasional travellers may find regular cards more economical.
3. Insurance and Emergency Assistance
Business and premium travel credit cards offer extensive overseas travel insurance protecting cardholders against emergencies like sickness, hospitalisation, trip cancellations or lost baggage. This provides substantial financial relief and assistance in case of adversities abroad.
Most regular policies offer basic coverage, such as air accident insurance and fraud liability protection on lost cards. Comprehensive travel insurance provides invaluable peace of mind.
4. Airport Lounge Access Privileges
Complimentary domestic and international airport lounge access is a signature benefit offered by premium travel cards. It allows travellers to relax and refresh before flights. Some variants offer unlimited lounge visits, while others offer annual 2-6 free visits. Regular credit cards seldom provide these types of elite travel privileges.
5. Eligibility and Approvals
With premium features and a deals ecosystem, travel credit cards mandate higher income criteria and credit scores of 700-plus. Regular cards have lower barriers for approvals. Secured cards require even lower eligibility criteria.
Analysing travel lifestyle and brand loyalty, among other key considerations, can help you choose between regular and travel credit card variants.
Conclusion
Travel credit cards or regular credit cards are chosen based on your travel patterns and spending habits. Travel credit cards are useful for frequent flyers in India, particularly those who fly frequently or travel abroad. These cards, however, have higher annual charges and stricter eligibility conditions, which may not be favourable to all.
With their broader reward systems and lower fees, regular credit cards are generally more suitable for occasional travellers or those who prefer flexibility in how they use their rewards. Before deciding, carefully assess your travel frequency, spending patterns, and the card’s terms to ensure it aligns with your needs. By selecting the right credit card, Indian travellers can save money, enjoy exclusive perks, and make their journeys more rewarding.