If you’re an avid traveler, you’re likely aware of the benefits a travel credit card can offer. From earning miles to enjoying airport lounge access, these cards can significantly enhance your travel experience. However, to get approved for a travel credit card, you need to have a good credit score. In this article, we’ll explore the credit score requirements for obtaining a travel credit card and how you can improve your chances of being approved.
Understanding Credit Scores
A credit score is a numerical representation of your creditworthiness, indicating how likely you are to repay borrowed money. Credit scores typically range from 300 to 850, with higher scores indicating a lower credit risk. Lenders use these scores to evaluate your creditworthiness before approving a credit card application, loan, or mortgage.
Here’s a breakdown of credit score ranges:
|740–799: Very Good|
Credit Scores and Travel Credit Cards
Travel credit cards are considered premium cards and often require a good to excellent credit score for approval. A credit score of 670 or higher is usually the minimum requirement to be eligible for most travel credit cards. However, the most attractive offers and benefits often require a credit score of 740 or above.
The reason behind this requirement is simple: credit card companies want to ensure that cardholders are financially responsible and can manage credit effectively. Travel credit cards come with perks such as generous sign-up bonuses, travel rewards, and low or no foreign transaction fees. To mitigate the financial risk associated with these perks, credit card companies seek out individuals with a proven track record of responsible credit usage.
Read Also: What are Credit Card Interchange Rates?
Tips to Improve Your Credit Score
If your credit score falls below the desired range for a travel credit card, don’t worry—there are steps you can take to improve it:
Check Your Credit Report
Obtain a copy of your credit report from each of the major credit bureaus—Equifax, Experian, and TransUnion. Review your report for any inaccuracies, late payments, or derogatory marks. Dispute any errors you find to ensure an accurate representation of your credit history.
Pay Your Bills on Time
Your payment history is a significant factor affecting your credit score. Make sure to pay all your bills on time, as even a single late payment can have a negative impact on your score.
Reduce Credit Card Balances
High credit card balances relative to your credit limit can lower your credit score. Aim to keep your credit utilization ratio below 30%—the lower, the better.
Don’t Close Old Accounts
The length of your credit history is an essential component of your credit score. Avoid closing old credit card accounts, as they contribute positively to the length of your credit history.
Limit New Credit Applications
Each time you apply for a new credit card or loan, a hard inquiry is made on your credit report, which can temporarily lower your score. Limit new credit applications to avoid unnecessary hits to your credit.
Consider a Secured Credit Card
If you have a low credit score or a limited credit history, a secured credit card can be a great way to start building or rebuilding your credit. Secured cards require a security deposit, and your credit limit is usually equal to the deposit.
Be Patient and Persistent
Improving your credit score takes time and consistent effort. Stay patient, follow good financial habits, and you’ll see your credit score improve over time.
Read Also: Things That Are Ruining Your Credit Score
Choosing the Right Travel Credit Card
Once you’ve improved your credit score and fall within the desired range, it’s essential to choose the right travel credit card that aligns with your needs and travel preferences. Here are a few things to consider:
Evaluate the rewards program to ensure it offers benefits that suit your lifestyle. Some cards may offer more miles for specific spending categories, making them a better fit for your spending habits.
Consider the annual fee associated with the card and weigh it against the benefits you’ll receive. Some cards may offer enough perks to justify a higher annual fee.
Check the sign-up bonus and the requirements to earn it. A generous sign-up bonus can provide a significant boost to your travel rewards.
Look for travel benefits like lounge access, travel insurance, and statement credits for travel-related expenses. These perks can enhance your overall travel experience.
Foreign Transaction Fees
Opt for a card that doesn’t charge foreign transaction fees, especially if you travel internationally frequently. These fees can add up quickly.
Best Travel Credit Cards In The Market
Traveling has become an integral part of our lives, whether for leisure or work. And what’s better than having a credit card that rewards you for your travels? In India, there are several credit cards specifically designed for travel enthusiasts, offering various perks and benefits. In this article, we’ll highlight the top three travel credit cards in India: Club Vistara SBI Credit PRIME, 6E Rewards XL – IndiGo HDFC Bank Credit Card, and AXIS Bank Miles and More Credit Card.
Club Vistara SBI Credit PRIME
- Welcome gift of Club Vistara Membership and Base Tier Points
- Complimentary Club Vistara Silver Membership
- 9 Club Vistara Points for every ₹100 spent on Vistara flights
- Complimentary lounge access and priority services at select airports
- Discount vouchers for domestic and international travel
The Club Vistara SBI Credit PRIME card is a perfect companion for frequent flyers with Vistara airlines. Not only does it offer attractive welcome benefits and reward points, but it also provides an enhanced travel experience with lounge access and priority services. The reward points can be redeemed for free flights, upgrades, and other travel-related benefits.
6E Rewards XL – IndiGo HDFC Bank Credit Card
- Up to 10% discount on base fare for IndiGo flights
- Complimentary Priority Pass Membership for airport lounge access
- 5% cashback on IndiGo website and mobile app transactions
- Milestone benefits like discount vouchers and anniversary bonuses
- Complimentary air accident insurance and zero liability on lost card reporting
The 6E Rewards XL – IndiGo HDFC Bank Credit Card is tailored for those who frequently travel with IndiGo airlines. It offers significant discounts on flight fares and additional benefits like lounge access and cashback. The card also provides various milestone benefits that further enhance the overall travel experience.
AXIS Bank Miles and More Credit Card
- Welcome bonus of Miles & More award miles
- Earn award miles for every ₹200 spent using the card
- Redeem miles for flights, hotel stays, car rentals, and more
- Lounge access at select airports across the globe
- Comprehensive travel insurance coverage
The AXIS Bank Miles and More Credit Card is an excellent choice for travelers who prioritize earning miles for their expenses. These award miles can be redeemed for flights, hotel stays, and other travel-related services, allowing cardholders to save on their future travel expenses. Additionally, the card provides access to exclusive airport lounges and comprehensive travel insurance coverage.
Having a good credit score is crucial when applying for a travel credit card. Aim for a credit score of 670 or higher to increase your chances of approval and access to the best travel credit card offers. If your credit score needs improvement, follow the tips mentioned above to enhance your creditworthiness. Once you have a suitable credit score, choose a travel credit card that aligns with your travel needs and preferences, and enjoy the benefits and rewards it brings to your adventures. Safe travels!