With more youngsters in India’s demography and a higher disposable income, travelers within the country are not showing any sign of abatement. Considering such enthusiasm among individuals across age groups, growth has been spectacular in the last 5 years.
Nevertheless, with holiday packages becoming pricier by day, and fluctuations of local currency in foreign destinations lead to problems in managing finances. Even with inbound tourism, sufficient liquidity and funds at disposal while traveling is also an area of concern for travelers. It thus becomes important to determine what could be the alternative option available to travel lovers, bringing to the fore the likes of travel credit cards.
Which Card Is Best Suited For Travelers?
If you are an avid traveler, or your work requires you to visit different places frequently, both within the country and overseas, then a travel credit card is something you must own. As the name suggests, it is a credit card variant in which the offered benefits are specifically designed to meet the needs of travelers. Carrying a travel credit card means the traveler can go easy on carrying cash at all times.
Benefits Of Travel Credit Cards That Make Them Suitable
The credit card offers various benefits such as discounts and cashback, complimentary access to airport lounges, air miles, discounts on hotel booking, etc. as they are typically designed to fulfill the needs of travel enthusiasts.
Here are a few of its primary advantages –
- Reward Points
The reward points may be earned with these cards in two ways, during sign-up or while making transactions. When a person first signs up for such a card, substantial bonus points are rewarded by select card issuers. In the second instance, points start to accumulate with every transaction that is done with the travel card. Whether booking hotels or flight tickets or dining at a partner outlet, points are rewarded. These points can be later redeemed to get further discounts or other benefits.
- Risk Of Fraud Mitigated
While traveling, carrying cash in person can be risky. Simultaneously, debit and credit cards are also vulnerable to phishing and theft. Sensitive information stolen from those cards can be misused for unauthorized transactions. In such a situation, the onus will be on the cardholder to internalize the loss suffered.
There is, however, a safety net in travel credit cards, more so credit cards in general. The cardholder remains protected against any liability arising from fraud or unauthorized transaction. Moreover, there may be robust security features such as usage control through an app as found in cards like the Bajaj Finserv RBL Bank SuperCard.
- Insurance cover
Insurance policies included in credit cards tailored for traveling needs cover loss of baggage and accident suffered during traveling. Baggage misplaced during transit has become more of a norm than an exception. The agony, stress, and financial loss thus are enough to spoil anyone’s trip. Losing baggage in a foreign location can also leave major financial implications.
Travel credit cards thus make good of the cost in baggage loss. The accident cover reimburses for the loss suffered owing to any catastrophic event in the course of the trip. It is thus one of the must-know credit card benefits for every traveler.
- No transaction fee during foreign trips
A substantial transaction fee is levied every time a debit or credit card is used in a foreign jurisdiction or any transaction undertaken in foreign currency. The levy could be to the tune of almost 3% of the involved amount. It would automatically inflate the outstanding due, making it difficult to repay your credit card debt. On the contrary, there is likely to be no foreign transaction fee when transactions are made with a travel credit card.
When considering how to apply for a credit card, here are a few broad steps to follow –
- Check eligibility – Age, nationality, income, etc.
- Arrange the documents required – Identity proof, residence proof, income proof, etc.
- Visit the financial institution’s website – Fill up the application form.
- Submit all information – All the relevant details must be submitted.
The representative of the concerned institution would subsequently get in touch with you for verification and card approval.
Financial institutions like Bajaj Finserv also extend pre-approved offers to make the application process simpler. Such a facility is available on financial products like personal loans and business loans, along with credit cards. You can check your pre-approved offer instantaneously by simply submitting your name and contact details.
These are a few of the benefits of a credit card tailored for traveling, making it most suited for travel lovers. The card helps to save a substantial amount of money, apart from offering standalone benefits not present in regular credit cards.