Smart usage of Credit Card for Travel bookings – Domestic & International

Credit cards are an essential part of our lives, as they provide us the convenience of making purchases now and paying for them later. Also, they offer various benefits and rewards, such as cash back, gift vouchers, discounts, travel miles, and more. These rewards allow consumers to save money on their routine expenses, which they can accumulate to make travel bookings, both domestic and international.

Credit cards are among the most recognized forms of plastic money today. They allow consumers to make purchases up to their credit limit and pay the amount back in instalments along with interest. They have become an integral part of our lives, providing us with the flexibility to make purchases on credit while offering benefits and rewards such as cashback, discount offers, and more. In this article, we will explain in detail about credit cards, their features, advantages, and disadvantages.

Features:

1. Credit Limit: One of the essential features of a credit card is its credit limit. The credit limit is the maximum amount of credit that the issuer extends to the cardholder, and it varies depending on the cardholder’s creditworthiness.
2. Annual Percentage Rate (APR): Credit cards charge interest on the balance outstanding. The Annual Percentage Rate is the interest rate charged to the cardholder on the balance outstanding. The rate varies depending on the card issuer and the cardholder’s credit score.
3. Rewards Points and Cashback: Most credit cards offer rewards points or cashback for purchases made using the card. These can be exchanged for travel miles, vouchers, or other rewards, making it a desirable feature.
4. Grace Period: Most credit cards come with a grace period of up to 55 days, where the interest is not charged on the purchases made during that period. However, it varies depending on the card issuer.
5. Annual Fees: Some credit cards come with an annual fee, which is charged yearly for the services provided by the issuer.

Advantages:

1. Convenience: Credit cards are convenient, as they allow us to make purchases on credit without the need for cash. We can use them for online shopping, booking tickets, or making any payment at a point-of-sale terminal.
2. Build Credit Score: By using credit cards responsibly, we can build a positive credit score over time, which can help us secure loans or mortgages in the future.
3. Rewards and Benefits: Credit cards offer various benefits such as rewards points, cashback, discount offers, and exclusive travel privileges.
4. Emergency Fund: Credit cards can serve as a readily available emergency fund in case of any unforeseen emergency or expense.
5. Safety and Protection: Credit cards come with a fraud detection system that helps detect fraudulent transactions, making them a safer option compared to cash.

Disadvantages:

1. High-Interest Rates: If the cardholder carries a balance on their credit card and fails to pay it on time, high interest rates can accumulate, becoming costly for even small purchases.
2. Debt Trap: Credit cards can trap the cardholder in a debt cycle if they do not use the card responsibly, leading to a debt trap that can be hard to break.
3. Annual Fees: Some credit cards come with an annual fee, which might offset the value of the rewards and benefits offered.
4. Complexities: Credit card issuers use a lot of technical terms and conditions that can be challenging to understand for an uninformed cardholder.
5. Temptation to Overspend: Credit cards might tempt the cardholder to spend more money than they can afford, leading to a debt cycle.

When it comes to booking travel, credit cards can be a lifesaver, especially when it comes to airfare, hotels, and car rentals. Smart usage of credit cards for travel bookings helps users earn loyalty points, cashback rewards, redeemable miles, and a host of other benefits, making their travel booking experience somewhat inexpensive. Many credit cards offer rewards programs that give consumers points, cash-back, and miles for each travel purchase. These rewards can then be redeemed for various travel expenses, including flight tickets, hotels, rental cars, and more.

Before we dive into the different credit cards that are available for travel bookings, let us understand the various types of credit cards so that you can choose the card that suits your spending habits and budget.

1. Rewards Credit Cards: These cards offer reward points or cashback on each transaction made using the card. The rewards can be exchanged for a variety of items, including travel. For instance, Bajaj Finserv App’s credit card options allow users to earn reward points that can be redeemed for booking domestic and international flights, hotel stays, rental cars, and a host of other travel-related services.
2. Travel Credit Cards: These cards are specially designed for frequent travellers who book travel tickets and hotel stays frequently. They offer rewards points or miles for travel purchases, along with perks such as free checked bags, lounge access, airport transfer, and other travel-related benefits.
3. Cashback Credit Cards: These credit cards offer cashback on each transaction made using the card. The cashback can either be credited to the cardholder’s account or redeemed for other rewards.
4. Balance Transfer Credit Cards: These credit cards allow consumers to transfer their existing credit card balance to a new card with a lower interest rate. This can help reduce the amount of interest paid on outstanding balances.
5. Low-Interest Credit Cards: These cards offer a lower interest rate than other credit cards. They can be a good option for consumers who carry a balance from month to month.
6. Prepaid Credit Cards: These cards are loaded with a certain amount of money and can be used like a regular credit card. They are an excellent option for consumers who want to avoid overspending or those who have a limited credit history.

Now, let’s talk about the various credit card options available in India for travel bookings, and their features:

1. Bajaj Finserv App: The Bajaj Finserv App is one of the best credit card app available in India for smart usage of credit cards for travel bookings. The app offers a range of credit cards that come with exclusive travel rewards and benefits to enhance your travel experience, such as discounts on flights, hotels, rental cars, and much more.
2. SBI Elite Credit Card: This travel credit card from SBI is designed for frequent travellers and comes with a range of benefits such as airport lounge access, fuel surcharge waiver, travel insurance coverage, dining and hotel discounts, and much more. The card also offers bonus rewards points upon joining and can be redeemed for travel expenses, including flight tickets.
3. HDFC Bank Regalia Credit Card: HDFC Bank Regalia Credit Card is an excellent credit card for travel bookings, offering exclusive travel rewards and benefits such as airport lounge access, air miles rewards, hotel discounts, priority check-in, and much more. It also comes with various insurance benefits such as air accident coverage, lost card liability coverage, and more.
4. American Express Platinum Travel Credit Card: The American Express Platinum Travel Credit Card is one of the most exclusive and prestigious travel credit cards in India. The card offers unlimited airport lounge access, exclusive travel benefits and rewards, complimentary air tickets, and much more. The card also offers a welcome bonus of reward points upon joining, which can be redeemed for airfare, hotel stays, and other travel expenses.
5. Citibank PremierMiles Credit Card: The Citibank PremierMiles Credit Card is an excellent option for frequent travellers who want to earn rewards miles on their travel expenses. The card offers air miles rewards for every transaction made using the card, which can be redeemed for flight tickets, hotel bookings, and more.

In conclusion, smart usage of credit cards for travel bookings can help you make the most of your travels while saving you money on your expenses. Before choosing a credit card, research different options available in the market and choose one that suits your lifestyle, budget, and travel preferences. Bajaj Finserv App’s credit card options can be an excellent choice for those looking to make travel bookings while earning rewards and benefits. However, ensure you pay off your card balance in full each month to avoid unnecessary interest payments and ensure a healthy credit score.