Travel Credit Cards issued by different card issuers have become the choice for thousands of people these days as traveling is a hobby for many people out there. Individuals who love traveling often look for travel credit cards in the market, so that they can save more and more on travel by earning rewards n these cards and availing of their benefits. Some people get travel credit cards just to travel a few times and then they find these cards unuseful. Travel Cards generally come with a high annual fee as these are premium cards that offer exclusive benefits. But, a question that arises here is what to do with a travel credit card if you don’t travel that often anymore. Should you close your travel card? Not traveling often is not the only reason why you might be wanting to cancel a travel credit card; there can be several more reasons as well. In this article, we will discuss when is it right to cancel a travel credit card and what all things you need to keep in mind while doing so:
When Should You Cancel Your Travel Credit Card?
Applying for a credit card as well as canceling it should never be a random decision as it may affect your credit score directly and adversely. However, if closing it becomes essential, you should go for it. The following are some conditions when canceling a travel credit card may be the right decision:
If You Really Don’t Travel Very Often Now
If you have a travel credit card, you would have surely got it to earn some rewards and benefits on travel. But, if you don’t travel that often anymore and your card seems to be useless to you, you may think of canceling it. However, there are a lot of things that you need to consider before closing a credit card. Travel Credit Cards are generally the premium ones and before closing yours, you should be very sure that you are really not going to travel that much in the future. It may happen in the case of people who travel often for business requirements, but they don’t need to do it anymore as they have taken retirement or any other reason.
If The Annual Fee Of Your Card is Very High
It is not a good idea to keep paying a high annual membership fee for a credit card that you don’t even use anymore. It is true that closing a credit card may have a bad impact on your credit score, but you should go for it when the card is just charging a high fee without offering any benefits relevant to your needs. If you think that your current travel credit card is very expensive and it is not worth it, you must cancel it and get another one. There are plenty of travel credit cards available in the Indian market these days. Though all of these cards are great, not every card is suitable for everyone.
These cards have different features and these may be targeted at different sets of individuals. If you frequently travel via Indigo airlines, it doesn’t make sense to have an Emirates co-branded credit card. So, you should choose a credit card according to your requirements only. Even if you are a frequent traveler and you’ve made a wrong choice while choosing a credit card, you should try to replace it as soon as you realize your mistake.
If The Card Only Offers Travel Benefits
Travel Credit Cards majorly offer travel-related benefits, like airport lounge access, discounts on travel bookings, complimentary hotel/flight vouchers, and many more. But, the advantages of these cards are not only restricted to travel. Some travel cards offer great Reward rates on shopping as well and these cards may be worth even when you are not using them for travel, but for other spends. So, even if you don’t travel frequently, closing a travel credit card may not be a good idea. Go through all its features & benefits and try to find out whether the card offers other privileges or not. If all its rewards and benefits are amazing, you can keep it.
Canceling a credit card is not a good decision until it becomes essential to do so. Even if you travel less frequently and you have a travel credit card, you must consider all the above-mentioned points before you close this card. Travel Credit Cards offer great benefits over other categories as well, including movies/dining, lifestyle, shopping, and many more. However, if you are just paying an annual membership fee and not availing of any of the card’s benefits, you can definitely consider closing your card. If you have additional doubts regarding this, you can freely ask us in the comment section below!