Forbes Advisor India analyzed prominent credit cards from top financial services companies in India based on key factors, including:
Ease of Use: Where the system of reward points is straightforward to understand, and it is easy to use those reward points. We have also taken into consideration caps on getting these reward points.
Extra Facilities: These include benefits provided by a card other than the usual payment, like welcome benefits, discounts on other things than fuel, surcharge waiver, etc.
Cost of the Card: The annual fee, add-on charges, hidden charges, and rebates all compensate for this.
Acceptance: Universal acceptance of the card is a must and is another crucial factor in the issuer’s credibility.
Redemption of Reward Points: The most essential point is redemption of reward points. The procedure should be transparent and easy for the users.
The following are the features and benefits of a travel credit card:
Rewards Program: A strong travel credit card should have a lucrative rewards program, offering points or miles for every dollar spent, with bonus categories for travel-related expenses.
Sign-Up Bonus: A generous sign-up bonus provides a substantial initial boost to your rewards balance, often earned after spending a certain amount within the first few months.
Flexible Redemption Options: Look for cards that offer flexibility in how you redeem your rewards, such as options to book travel directly, transfer points to airline or hotel partners, or redeem for statement credits.
Travel Insurance: Comprehensive travel insurance coverage, including trip cancellation/interruption, baggage protection, and rental car insurance, can provide peace of mind during your travels.
No Foreign Transaction Fees: A good travel credit card should not charge foreign transaction fees, making it cost-effective for international use.
Airport Lounge Access: Some premium travel cards provide access to airport lounges, offering a comfortable and relaxing environment during layovers.
Global Acceptance: Ensure the credit card is widely accepted globally, allowing you to use it in various countries without issues.
Annual Fee vs. Benefits: Evaluate the annual fee against the benefits provided, ensuring that the perks and rewards outweigh the cost of card ownership.
Additional Travel Perks: Consider additional travel-related perks such as TSA PreCheck/Global Entry fee credits, hotel upgrades, concierge services, and exclusive events.
Security Features: Robust security features, including fraud protection and alerts, are crucial to safeguard your financial information while traveling.
Ease of Use: A user-friendly interface and easily accessible account management tools contribute to a positive cardholder experience.
Customer Support: Reliable customer support, especially during emergencies or while abroad, is important for a smooth travel experience.
Introductory 0% APR Period: Some travel cards offer an introductory period with 0% APR on purchases, which can be beneficial if you carry a short balance.
Eligibility criteria for travel credit cards can vary among issuers and specific card offerings, but there are some common factors that lenders typically consider when evaluating applicants. It’s important to note that meeting these criteria doesn’t guarantee approval, as credit card approval decisions are ultimately at the issuing bank’s discretion. Here are key factors that influence eligibility:
Credit Score: A good to excellent credit score is often a prerequisite for travel credit cards. Lenders generally look for a credit score of 670 and above. The higher your credit score, the better your chances of approval and securing favorable terms.
Credit History: Lenders assess your credit history, including your payment history, the length of your credit history, and any negative marks such as late payments or bankruptcies. A favorable credit history enhances your eligibility.
Income: Your income is crucial in determining your ability to repay credit card balances. Some premium travel cards may have minimum income requirements, so meeting or exceeding those thresholds is essential.
Debt-to-Income Ratio: Lenders evaluate your debt-to-income ratio, the percentage of your monthly income that goes toward debt payments. A lower ratio is generally favorable and indicates a lower risk for the lender.
Stable Employment: A consistent and stable employment history can boost your eligibility. Lenders may consider your job stability and income consistency indicators of your ability to manage credit responsibly.
Existing Debt: Lenders assess your debt obligations, such as mortgages, car loans, and other credit cards. A moderate level of existing debt may be acceptable, but excessive debt relative to your income could be a red flag.
Age: In many countries, applicants must be at least 18 to apply for a credit card. Some premium travel cards may have higher age requirements.
Citizenship/Residency: Some credit cards may have specific citizenship or residency status requirements. Make sure you meet these criteria before applying.
Number of Recent Applications: Applying for multiple credit cards quickly can negatively impact your credit score. Be mindful of how frequently you apply for new credit.
The documents required to apply for a travel credit card can vary based on the issuing bank and the country in which you reside. However, here is a general list of documents commonly requested by credit card issuers during the application process:
Proof of Identity:
Proof of Address:
Proof of Income:
Credit History Information:
Social Security Number (or equivalent):
Additional Financial Information:
Visa/Residency Status (if applicable):
Applying online for a travel credit card is a relatively straightforward process. Here’s a step-by-step guide to help you through the online application:
Check Eligibility: Review the eligibility criteria for the specific credit card you’re interested in to ensure you meet the requirements, including credit score, income, and other factors.
Gather Necessary Information: Collect the required documents and information, such as proof of identity, proof of address, proof of income, and any other documents specified by the issuing bank.
Visit the Issuer’s Website: Go to the official website of the bank or financial institution that issues the travel credit card. Look for the credit card section.
Navigate to the card’s Page: Find the page dedicated to the travel credit card you want to apply for. This page usually details the card’s features, benefits, and terms.
Start the Online Application: Look for a button or link that says “Apply Now” or a similar phrase. Click on it to initiate the online application process.
Fill Out the Application Form: Complete the online application form with accurate and up-to-date information. You’ll need to provide personal details, contact information, employment information, financial details, and other relevant data.
Upload Documents: Some online applications may allow you to upload supporting documents directly. Follow the instructions provided by the application portal to submit any required documentation.
Review Terms and Conditions: Before submitting your application, carefully review the credit card’s terms and conditions. Pay attention to interest rates, fees, reward structure, and other important information.
Submit Your Application: Once you’ve completed the application form and reviewed the terms, submit your application. In some cases, you may receive an immediate decision, while others may take a few days.
Wait for Approval: After submitting your application, wait for the issuing bank to review and process it. The bank may contact you for additional information if needed.
Activate Your Card: You’ll typically receive your credit card by mail upon approval. Follow the instructions provided to activate your card before you can start using it.
Precaution: Record your application reference number and any confirmation emails you receive. If you encounter any issues or have questions during the application process, please contact the bank’s customer support for assistance.
