How To Choose A Travel Credit Card (This Is What We Use)
TLDRThe video discusses the process of selecting a travel credit card, highlighting the importance of aligning card benefits with one's lifestyle and spending habits. The speakers share their journey of researching various cards, focusing on the American Express lineup and the TD Aeroplan Visa Infinite card. They emphasize that the value of a credit card is largely determined by individual spending patterns and long-term travel goals, ultimately choosing a card that offers a balance of rewards and annual fees that suit their needs.
Takeaways
- 💳 The variety of credit cards available, especially travel credit cards, can be overwhelming.
- 💰 Many travel credit cards require significant spending to unlock their best perks and rewards.
- 🔍 The research process for choosing a travel credit card involved looking at popular options and recommendations from travel influencers.
- 🏦 American Express offers a range of travel credit cards like Platinum, Gold, and Cobalt, each with different benefits.
- 💳 The decision on which card to choose should align with one's travel habits and spending patterns.
- 💰 High annual fees on some travel credit cards may not be justified if the cardholder does not spend enough to benefit from them.
- 🎁 Some cards offer attractive sign-up bonuses but require substantial spending to be valuable.
- 🥇 Status qualifying miles or points can lead to perks like lounge access and upgrades, but require accumulation through travel and spending.
- 🛫 The choice of travel credit card can be influenced by the airline one typically uses, such as Air Canada in this case.
- 💡 It's important to consider both the initial year's travel and spending and long-term lifestyle when selecting a travel credit card.
Q & A
What is the main focus of the video?
-The main focus of the video is to discuss the process of researching travel credit cards and to share which card the speakers ultimately chose.
Why did the speakers decide to get a travel credit card?
-The speakers decided to get a travel credit card because they realized they were doing a lot more traveling and wanted to start getting rewarded with points for the spending they were already doing.
Which American Express cards were mentioned in the video?
-The American Express cards mentioned in the video are the Platinum, Gold, and Cobalt cards.
What was the speakers' main concern when looking for a travel card?
- The speakers' main concern was finding a card that had a great signup bonus and made sense for their travel habits in the upcoming year and beyond.
Why did the speakers ultimately choose the TD Aeroplan Visa Infinite card?
-The speakers chose the TD Aeroplan Visa Infinite card because it had a lower annual fee of $139, and they could earn points that could be used for potential free flights with Air Canada, which is the airline they normally fly.
How many points have the speakers accumulated so far with their travel credit card?
-The speakers have accumulated 92,000 points so far with their TD Aeroplan Visa Infinite card.
What is the significance of status qualifying miles in travel credit cards?
-Status qualifying miles are important because they help travelers achieve higher status levels which can lead to perks such as lounge access and potential upgrades on flights.
How did the speakers earn their status qualifying miles?
-The speakers earned their status qualifying miles by flying with Air Canada, particularly on a premium economy flight to Kenya, which earned them a significant number of miles.
What is the speakers' view on paying a higher fee for travel credit cards that offer immediate perks?
-The speakers do not believe it is worth it to pay a higher fee for immediate perks. They prefer to earn those perks through their travel and spending habits over time.
What is the main takeaway from the video regarding credit card choices?
-The main takeaway is that the best credit card choice ultimately depends on an individual's spending habits. If someone is not planning to spend more money or doesn't have the ability to, it may not make sense to get high-fee credit cards with extensive perks.
Outlines
💳 Exploring Travel Credit Cards and Research Process
This paragraph discusses the variety of travel credit cards available and the challenges of finding the right one. The speaker explains that many travel credit cards require significant spending to unlock their benefits. They share their journey of researching different cards, focusing on popular options and those recommended by travel influencers. The American Express cards, specifically the Platinum, Gold, and Cobalt cards, are highlighted. The speaker emphasizes the importance of understanding the spending requirements and long-term viability of these cards, especially considering their annual fees and the potential mismatch between the card's benefits and the user's lifestyle and travel habits.
🌟 Choosing the Right Card for Your Travel Needs
In this paragraph, the speaker dives deeper into the decision-making process for selecting a travel credit card that aligns with their travel patterns and spending habits. They mention the American Express Cobalt card as a potentially good fit due to its rewards structure, which includes bonus points on common spending categories. The speaker also discusses the strategy of combining different cards, such as the TD Aeroplan Visa Infinite card for flight purchases and the Cobalt card for other expenses, to maximize rewards. They share their appreciation for a cashback card from Neo Financial and the benefits it offers at their frequented restaurants and stores.
🛫 Experience with the TD Aeroplan Visa Infinite Card
The speaker shares their experience with the TD Aeroplan Visa Infinite card, which they chose due to its lower annual fee and the alignment with their travel preferences with Air Canada. They detail the process of accumulating points and status qualifying miles (sqm points), and how these can be used towards future flights and upgrades. The speaker clarifies that achieving higher status levels and perks such as lounge access and potential upgrades requires significant spending or points accumulation. They also discuss the different seat preferences and ticket types when flying, highlighting the cost-saving benefits of basic flights and the trade-off with earning status qualifying miles.
💡 Key Takeaways on Credit Card Selection and Spending
In the final paragraph, the speaker reflects on the importance of personal spending habits when choosing a credit card. They stress that the benefits and rewards of high-tier credit cards are most accessible to those who can meet significant spending thresholds. The speaker emphasizes that for individuals who do not plan to increase their spending, it may not be beneficial to opt for credit cards with high annual fees and elaborate rewards programs. They invite the audience to share their thoughts and questions, acknowledging that their credit card strategy may evolve over time as they continue to use and evaluate their current choices.
Mindmap
Keywords
💡credit cards
💡travel perks
💡spending habits
💡annual fee
💡sign-up bonus
💡status qualifying miles
💡reward optimization
💡cash back
💡travel credit card research
💡lifestyle fit
Highlights
The discussion focuses on the process of researching travel credit cards and sharing the card they ultimately chose.
Prior to this year, they did not have a travel credit card and focused on cashback credit cards due to limited travel.
The realization that they were traveling more led to the decision to get a travel credit card to earn rewards for their spending.
American Express cards, specifically the Platinum, Gold, and Cobalt cards, were among those researched due to their popularity.
The importance of considering the main travel credit cards and those recommended by travel influencers in their research.
The consideration of the balance between travel for the current year and future travel habits when choosing a card.
The realization that the value of travel credit cards is tied to the amount of money one is willing to spend on them.
The decision to not look into co-branded cards as they seemed too specific and not suited for their travel patterns.
The TD Aeroplan Visa Infinite card was chosen for its lower annual fee and suitability for their travel habits.
The strategy of combining the Cobalt card with the TD Aeroplan Visa Infinite card for optimal rewards.
The mention of a cash back card from Neo Financial that offers high rewards on restaurants and stores they frequent.
The accumulation of 92,000 points with the TD Aeroplan Visa Infinite card, including welcome and spending bonus points.
The importance of status qualifying miles for perks like lounge access and potential upgrades.
The strategy of choosing basic flights for cost-saving and the impact on earning status qualifying miles.
The notion that higher spending on flights correlates with more points and potential free perks.
The emphasis on the fact that credit card rewards ultimately depend on individual spending habits.
The acknowledgment that their credit card setup may change in the future based on their spending and travel patterns.