True to its name, a travel credit card is a type of credit card that has special benefits related to hotels and travel. The banks and financial institutions which issue such cards provide few extra benefits to their customers in the form of reward points or gifts. The working of travel credit cards is exactly similar to that of the standard ones.
On every purchase that is made, some reward points are rendered to the card holder according to the bill amount. The payment of credit card bills has the same procedure as in a standard credit card. These reward points can be redeemed by the customer to enjoy free stays at hotels, buy air tickets or rent cars for travelling.
Some travel credit cards are co-branded with chains of hotels. While using these cards, the points gained by the customer can be redeemed only at those specific hotel chains or any other affiliates that are mentioned. Besides these specific cards, credit card issuers also offer general travel cards. These travel credit cards facilitate the customers to redeem the points that are earned on air travel, admission in theme parks, stays at various hotel chains and much more. In some cases, the points can be redeemed to rent cars or even on cruises.
Travel credit cards can prove to be costly for credit cards issuing companies. So, there is an annual fee associated with these cards is most of the cases. Travel credit cards are very advantageous to people who travel frequently. Otherwise, the annual fees that are charged on the credit card can negate the benefits of reward points earned by the customer. You can also plan your vacations in advance by redeeming reward points for tickets or booking hotel rooms with the help of these cards.