The answer is, “It depends.”
When most people think of a travel credit card, they consider one that offers frequent flier miles with purchases, points in hotel points programs, or retail partners that offer discounts to cardholders. Perhaps the most popular travel card is the type that accrues frequent flier miles. These are the cards that throw in a certain number of frequent flier miles with each purchase, and if you use it to buy a lot of stuff, then pay the balance off each month, it’s a great way to pile up those airline miles.
Another way to think of a travel credit card is as a source of currency wherever you happen to be. You can often (but not always) get a good currency exchange rate with your credit card, and they are widely accepted throughout North America and Europe. You may also have the option to get cash from an ATM using your credit card. Again, the exchange rates are usually a little more generous than going to a currency exchange office.
Another type of travel card isn’t a credit card at all, but a prepaid spending card. These are perfect for teens going on group tours of other countries with their French club or their school choir. These cards are topped up by mum or dad prior to the trip, and give a student an easy, safe way to pay for incidentals and meals. And they can be topped up online usually, in case funds run low. Visa Buxx is one such prepaid card.
Three examples of travel rewards credit cards are the Citi Forward Card; Starwood Preferred Guest American Express Card; and Miles by Discover. Each has its own advantages and disadvantages.
The Citi Forward Card gives you 100 bonus points for each billing period when you pay on time, and interest rates go down as you manage your card responsibly. Starwood Preferred gives you 10,000 points when you make your first purchase. The Miles by Discover Card gives you 1,000 miles for each month you make a purchase, double miles for the first $3,000 you spend, and you have access to all the major airlines.
There are many other choices, too, and you can easily compare travel rewards cards by going to askmrcreditcard.com or creditcards.com. Keep in mind that if you tend to carry balances from month to month you will probably be better off choosing the card with the lowest interest rates and not accumulating travel miles or points due to the offsetting nature of high interest payments.
Article Source: http://www.articlesbase.com/credit-articles/what-is-a-travel-credit-card-1102565.html
About the Author
Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.