How points and miles credit cards can ease return to travel

As the COVID-19 vaccination era makes it safer to travel, many people who stayed home during pandemic shutdowns are vacationing again. Airport checkpoint numbers have increased about 20% from January through mid-June, 2021, compared with the same time frame in 2020, according to Transportation Security Administration data.

Rewards like points and miles earned from a travel credit card can help you get to a long-awaited dream destination, especially as a new cardholder. Currently, there’s no shortage of generous sign-up offers for those with good credit (a FICO score of 690 or higher), but before accepting one, consider whether a travel credit card aligns with your spending.

Even for globe-trotters, a travel credit card might not be compatible with habits or financial circumstances. Weigh these factors to determine what’s right for you.

WHEN A TRAVEL CREDIT CARD MAKES SENSE

Travel credit card options are abundant. There are general travel credit cards that allow flexible redemptions and co-branded travel credit cards allow travel redemptions with certain hotel brands, airlines or third-party travel websites.

These types of credit cards may be useful if you travel regularly, have no debt and pay the bill in full each month to avoid interest charges. Otherwise, the high interest rate on these cards chips away at the value of rewards. If you check off these boxes, then you could consider a travel credit card.

Teaming a travel card up with a travel savings fund can also prevent unwanted budget surprises like costs that aren’t covered by credit card rewards. If you want to go somewhere in six to 12 months, then set aside money from each paycheck to avoid debt, says Kelly Luethje, a certified financial planner and founder of the Willow Planning Group in New Hampshire.

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