You want to get a travel credit card. However, you don’t have excellent credit. In fact, you don’t even have good credit. What are your options? Don’t worry, you can get travel credit cards for fair credit using the following tips.
What Is a Travel Card?
Just to make sure that we’re on the same page, let’s talk about what a travel card is. This is a credit card that is designed for people who want to get travel-related benefits. In other words, it’s a rewards card that offers travel-specific rewards.
Typically, the way it works is that you make purchases of any kind on the card. You get points as rewards for those purchases. Most of these cards give you points for all purchases. However, they generally give you more points for travel-related purchases. So, you might get more points for booking airfare and hotels or getting gas using the travel card than you would for a purchase at, say, a grocery store.
You accumulate these points. Then you can spend them on travel-related expenses to help offset the cost of travel. In addition to the travel-specific rewards, these cards often have other great travel benefits as well. For example, they may offer good travel insurance just for using the card to book your trip.
Is a Travel Card The Same as a Frequent Flyer Program?
People sometimes get confused because airlines offer travel credit cards and they also offer frequent flyer programs. However, the two things are different. A frequent flyer program isn’t a credit card. Instead, it’s simply a system that you use to book your air travel. When you do, you get points or “miles”. Then you can use those points or miles to get a discount when booking future travel.
Similarly, with a travel credit card, you get travel-related points. You can apply those to getting miles. However, it’s not necessarily for a specific airline. Moreover, you can use the credit card for purchases. You can’t purchase anything using a frequent flyer program. Note that some airlines offer both, though, and will give you much better travel card benefits for utilizing their frequent flyer program.
Benefits of a Travel Card
As aforementioned, there are many benefits to using a travel card in addition to the points that you get. I have a few travel cards myself, one of which I use very regularly. Some of the benefits that I enjoy include:
- Rental car insurance coverage. This is the benefit I have used the most. I don’t drive, so I don’t have personal car insurance. Getting insurance coverage at the rental car agency is very expensive. Therefore, I skip the insurance and use the travel card’s insurance instead. It comes free with my credit card. Do note that there are limitations, so you’ll want to research this carefully.
- Trip insurance for cancellations, disruptions, etc. Again, this can be limited, but it’s usually better than what an airline has offered.
- Delayed or lost baggage insurance. You use your card to book a flight. The airline loses your luggage. You need to buy some clean undies and toiletries at your destination as a result. The card may cover it.
- Emergency insurance. I’ve never had to use this but many travel cards offer assistance paying for emergencies during travel including medical needs and accidents/injury costs.
- No foreign transaction fees. I can use my travel card in other countries without paying an added fee.
These are just some examples.
Tips To Get Travel Cards For Fair Credit
So, there are some great reasons to use travel cards. But you don’t have good credit. That’s okay. Here are some tips to get travel credit cards for fair credit.
Look for Travel Credit Cards for Fair Credit
Do your research to find the current best travel credit cards for fair credit. After all, there are companies that specifically advertise offers for exactly this. Some of the key things you want to look for include:
- Obviously, that they accept people with fair credit.
- Good percentage back or “points” on travel-related purchases.
- Benefits and perks. You might find that fair credit travel cards don’t offer huge points but actually do have good travel insurance, benefits, and perks. Just read your fine print.
- Low or no annual fee.
- Interest rate. Chances are you’ll have a fairly high interest rate since you only have fair credit, making you a risk to the company. However, as long as you are clear on what that rate is, and you are able to pay back your purchases in a timely manner, this can be okay.
Consider: Capital One QuicksilverOne Cash Rewards Credit Card
This is an example of the type of travel credit cards for fair credit. It has a low annual fee of $39. It accepts applicants with limited credit history and fair credit. Moreover, when you use your card on the Capital One Travel site to book travel, you get 5% back. You also get a percentage back on other purchases so that you can build up your rewards. It often has a high interest rate, though, so just make sure you know what you’re getting into. This is just one example of a travel card for fair credit.
Check for Pre-Approved Credit Offers
Did you know that you can find out if there are credit cards that are likely to specifically offer pre-approval for you? Use a tool like Experian to search for pre-approved credit offers. Then choose the best travel card among them.
Check Airline Credit Cards
Sometimes airline credit cards are more likely to accept fair credit applicants than big company credit cards. You don’t have as many options for getting points with these since you’re limited to that airline. However, it can be a great way to get started with building travel card credit.
Consider Other Fair Credit Rewards Cards
You don’t have to choose a travel-specific card. Oftentimes, more general rewards cards still do offer some travel benefits. Looking at these can broaden your options for getting a card with your fair credit.
Ask to Be an Authorized User on Someone Else’s Card
This is a great way to quickly build good credit. Find someone who already has excellent credit. Ask them to add you as an authorized user on your card. This improves your credit score, allowing you to get better card offers yourself.
In the meantime, you can utilize their card to make purchases. Obviously, make sure that you’ve agreed on the terms of this with them, since they will be responsible for payments if you don’t make them. If they have a travel rewards card, find out if they’re willing to share the rewards with you if you’re using the card. Alternatively, you may offer that they keep all rewards in exchange for letting you build your credit this way. Pay the bill off regularly.
Keep Improving Your Credit
Finally, take all of the steps necessary to rebuild and improve your credit. The higher your score, the easier it’s going to be to get great rewards cards.
Additional Links:
- Get Your Credit Life Started With These 5 Credit Cards
- 5 Ways You Are Lowering Your Credit Score
- 4 Ways We Save Money with Cross Country Travel
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Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.
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