London, Paris, New York! The world is full of exciting places that are waiting to be experienced. As a South African, travelling abroad can get pretty costly once you factor in visas, airfare, and accommodation. Of course, you’ll also need money for food, transport, and visiting tourist attractions.
Don’t give up on your international travel dreams just yet! With the right travel credit card, you can get discounts on your airfare, free travel insurance, and many other discounts. Travel credit cards are similar to rewards credit cards; you can redeem travel-related rewards in exchange for using your credit card for transactions. Some travel credit cards can be used to make purchases abroad, saving you a trip to the foreign exchange counter.
When deciding on the right travel credit card it's easy to get bogged down with all the details. Comparing discounts, terms and conditions and interest rates is tedious! Get into the holiday mood and let us help you find the right credit card.
That’s why we pride ourselves on being South Africa’s information hub for all things related to finance and money. Here’s our guide on everything you should know about travel credit cards!
Most travel credit cards are used for local transactions, with rewards and discounts redeemable only for travel-related costs. Some travel credit cards may involve a reward points system based on your purchases, for example, Nedbank’s SAA Voyager credit card allows you to earn SAA Voyager miles which can be redeemed for discounts on airfare etc.
While all cards may not have this system, all travel cards have hefty annual fees to access these discounts and use the credit facilities. These fees are dependent on the type of card and their facilities. Cards intended for higher-earning individuals generally have higher annual fees, but they may come with more perks.
Perks that you can expect from a travel credit card include:
Not all travel credit cards allow you to make transactions in foreign countries. In this case, you can use cash, or a credit card specifically made for this purpose.
Travel credit cards like the FNB Global account allow travellers to make transactions in nine different currencies. You are also allowed access to select airport lounges across the world.
Alternatively, you could use a prepaid travel debit card like the Nedbank travel card. This could be a safer option for going cashless while on a budget.
Most reputable credit providers will grant you a credit card based on your credit score and income. For travel credit cards, your income can heavily determine the type of credit card agreement you are offered.
Some credit providers may require that you earn above a certain threshold on a monthly basis as opposed to a minimum annual salary threshold. For example, the World Citizen credit card from Standard Bank requires that you earn at least R25 000 a month to qualify.
Most credit providers allow you to make an application online which can be done from the comfort of your own home. You will likely require your South African barcoded ID and proof of income. If you require additional documents your credit provider should inform you during the online application process.
If you experience any difficulty with your online application, do not hesitate to contact your credit provider. You should also contact them if you are unsure about the validity of your documentation, or the terms and conditions set out online. After all, you want to get the most out of your travel credit card!
There are a few travel credit cards available to South Africans so it's worth putting in the time to do your research before selecting the right card. Each card comes with different perks and discounts, so there's something for everyone! Here are a few travel credit cards to give you an idea of what to expect.
Standard Bank’s World Citizen Credit Card offers great rewards for the price of a regular credit card. With interest rates between 7 and 18% and comparable monthly service fees, the World Citizen credit card may be a more affordable choice.
Perks include comprehensive travel insurance, access to airport lounges, and a 55-day interest-free period. Discounts are available on accommodation, Emirates flights, car rentals and health spas.
You can get a quote online to determine your monthly fees and possible rewards. To apply, you can contact Standard Bank either telephonically or by physically visiting your local branch.
The American Express platinum card is on the pricier side when it comes to annual fees and the rewards points system favours selected transactions and stores. However, the perks may be worth it if you are a frequent traveller.
You get free comprehensive travel insurance for you and your family as well as fast-tracked airport experiences and access to airport lounges across the world. They've partnered with Qatar, Etihad, and Emirates airlines to offer you discounts on airfare. Additionally, there are many hotel and car hire discounts available.
This card is available through Nedbank, so don’t be alarmed if the online application redirects to a Nedbank website. There is a five-step online application process including a short qualification test. You will need your ID and proof of income to begin the background check. Additionally, you need to be over the age of 18 and earn a minimum of R200 000 annually to qualify.
Nedbank’s SAA Voyager credit card allows you to accumulate SAA Voyager miles on your transactions and redeem them for discounts on airfare. There is a 55-day interest-free period and an annual fee of around R2000. Applications can easily be made online.
Travelling the world and experiencing things you only saw on television can be pretty exciting. The reality is much more sombre. But with the right travel credit, you can save tons of money on airfare, accommodation, and insurance.
The perfect travel credit card is the one that suits your needs. What type of traveller are you? Do you need access to airport lounges? Do you want to be able to make international transactions with your card as well? It’s important to sit down and assess your needs and expectations before beginning your search.
Once you’ve determined exactly what you want out of a travel credit card, you can use sites like BudgetGist to narrow down your options. Take care to ensure that you are comfortable with the additional service fees, interest rates, and repayment plans. At the end of the day, your travel credit card should not be a liability, even if it offers amazing travel rewards.
Spending hours searching for the right travel credit card is not an exciting start to your holiday. Luckily, BudgetGist is here to keep you informed. We are South Africa’s information hub for all things related to finance and money.
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