4 Steps Before Getting a Travel Credit Card

Travel rewards enthusiasts are quick to brag about their conquests: The {insert absurd amount of money here} trip they got for pennies on the dollar, the $20,000 per night suite they got for free, or the far-flung places they’ve traveled with airline miles.

While all they say is often true, there is a dark underbelly to the rewards world.

Not only is it a lot more difficult to earn a lot of points and miles than many travel gurus let on, but far too many beginners dive so deeply into this hobby they wind up digging their way into debt.

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Keep in mind that the average credit card debt is over $15,000 for indebted families and that at least some of this is brought on by people who pursued rewards for sport. Beyond the debt issue, there are also steps everyone should take to ensure their finances and rewards strategy are prepared:

Vow to Remain Debt-Free

Before you sign up for a travel credit card, you need to be 100 percent free of consumer debt other than a mortgage or car note (and maybe student loans). No matter what, you won’t benefit from pursuing credit card rewards if you carry a balance and pay interest on your purchases.

Beyond becoming debt-free, you also have to stay that way. Make sure you’re prepared to pay off every purchase you make with your rewards card—and that you have the discipline to use your card only for purchases you can afford.

Figure Out Which Programs Work for Your Goals

Before you sign up for a travel rewards card, it helps to know which cards and programs work for where you want to travel. Southwest Airlines may be one of the most family-friendly airlines out there, but since they only fly domestically and to Mexico and the Caribbean, earning miles won’t help you much if you have Asia on your travel bucket list.

If you’re angling for an all-inclusive stay, there are also cards that fit the bill there—and hotels cards that just won’t work.

Make sure to research cards and programs ahead of time so you wind up with the right fit.

READ MORE: Travel Reward Hacking for Newbies

Learn About Flexible Travel Rewards Programs

Maybe you want to travel but never know where or when. If that’s the case, it might be difficult to pick a rewards credit card right off the bat.

But, there’s another option to consider. Instead of choosing a specific airline or hotel loyalty program and getting their co-branded credit card, you could get a flexible travel credit card. With the Platinum Card from American Express, for example, you could earn points that transfer to an array of airline and hotel partners. The same is true with the Chase Sapphire Preferred or Chase Sapphire Reserve.

If you wanted flexible travel credit you can use to book any type of travel, you could also try a card like the Barclaycard Arrival Plus World Elite MasterCard or the Capital One Venture card.

READ MORE: The Best Rewards Credit Cards for International Travel

Ask if You Can Afford to Pay the Annual Fee

While some cash-back credit cards don’t charge an annual fee, it’s important to note that many of the top travel credit cards charge an annual fee in the $95 - $450 range.

While these fees can be well worth it, it’s crucial to make sure you’ll get enough value out of your card for the math to make sense.

Most of the time, you’ll be better off if you start off small. Try getting a no-fee travel credit card to try it out, then move onto cards with annual fees when you’re sure you can utilize the perks.

Don’t worry, the top travel credit cards will be there when you’re ready.