Are travel credit cards worth it?

So, you’ve probably read up about the latest travel hacks and learnt some clever tricks to save pennies on your next trip using credit cards and travel points.

But to every benefit, there is always a cost.

Is the cost of a credit card annual fee worth it?

Do I really want to have access to get into debt?

Am I planning to make big purchases to meet the minimum spend in the first few months, or am I spending to meet that requirement?

Is the whole concept of travel points just a big game that traps you into thinking it’s a good deal when perhaps it’s just a money-making machine?

I’ve pondered these questions too.

For all the posts you read about travel credit cards and point systems, when it comes to credit cards, it’s important to weigh up whether the benefit is worth it.

If you’ve got a big trip coming up and you find a credit card with a relatively low annual fee and a big bonus point offer, here’s where I think you can strike gold.

It’s important to work out whether the annual fee is worth its weight in benefit.

For example, you might experience some of the following benefits:

• Staying at more expensive hotels for less. Some airlines offer a mix of using both points and cash. The advantage of this is that the cost per night gets reduced the more points you use to offset the overall cost. While the nightly rate is often more expensive when using this method, you can still reduce the nightly cost. It might also open up more location options, such as booking hotels in central locations without the cost being unaffordable.

• Saving on travel insurance. Given some credit cards come with complimentary travel insurance, you might be able to save here, especially if you’re accounting for travel insurance costs for two people.

• Saving on flights. You might be able to use the points you gained from the credit card to save on airfares.

• Other perks and benefits. Some credit cards come with complimentary lounge passes. A nice added luxury.

So, back to our question: are they worth it?

I think the answer is both yes and no. It depends on what kind of traveller you are, how often you travel, what benefits you want and whether you’re up for the research and effort.

For some, credit cards and points are well worth the effort—not to mention the delight you feel in knowing you’ve saved a few pennies. For others, it’s not worth the effort, and perhaps there’s more delight in just focusing on the journey.