Experian, the credit reporting agency, says that the average American has four credit cards. However, people who are enthusiastic about travel rewards cards may have a slightly different approach to credit cards compared to the average American. They may even have more than four cards. However, if you are new to earning points and miles or prefer to proceed at a slower pace, you might not have a large number of credit cards in your wallet.
Whether you have more, less, or the same number of credit cards as most people, you probably don’t bring all of them with you when you travel. But have you ever considered how many and what types of things you should bring?
Travelling with at least two cards is important for various reasons. In this text, we will discuss the importance of having a backup card and some best practices to follow when using it, whether you are travelling within the United States or internationally.
Understanding Credit Card Options
There are four main credit card groups in the United States: Visa, Mastercard, American Express, and Discover. These groups assist in facilitating smooth transactions between stores and the companies that issue the cards. Some companies, such as American Express and Discover, do both things—they create credit cards and process transactions. Visa and Mastercard are payment methods that can be used for transactions. They are accepted by many card issuers.
If you have a Visa card, a bank such as Chase or Bank of America might have issued it to you. However, a Mastercard could be issued by banks such as Citi or Wells Fargo. There are many different credit card options available from various networks and issuers. This allows you to choose the one that best fits your needs and preferences.
Should You Take More Than Two Cards?
Yes, but if any of your cards are lost or stolen, it can be very frustrating because you will have to make a lot of phone calls to cancel them. And who would want to spend their vacation doing that? If you want to earn more rewards by using different cards for different spending categories on your trip, it makes sense to bring multiple cards. However, remember to leave at least one card in your hotel room safe.
When you travel to another country, make sure that your main credit card and any extra cards you have don’t charge any fees for transactions made in foreign currencies. We suggest considering the Chase Sapphire Preferred® Card and Capital One Venture Rewards Credit Card. You can find information about their rates and fees.
Why You Should Have a Backup Credit Card When Travelling?
Avoid Financial Disasters
Picture yourself in a different country where you can’t use cash or credit. It’s important to have a backup credit card so that you can always pay for important things like where you stay, how you get around, and what you eat. Knowing that you won’t be left in a tough situation, it gives you a sense of peace and security.
Manage Unexpected Expenses
Travelling frequently can sometimes involve unexpected costs. Your main credit card might have a limit on how much you can spend or additional fees for transactions made in another country. These limitations could make it difficult for you to pay for these expenses. Having a backup credit card means you have an extra way to pay for any unexpected expenses that might come up while you’re travelling.
Overcome Card Issues
When you travel, it’s possible for credit cards to be lost, stolen, or damaged. If your main card is compromised, having a backup card means you can keep going on your trip without any problems. If you have a problem, you can contact your bank right away. They can help you report the issue and activate your backup card. This will make sure that you can still use your card to buy things and take out money.
Take Advantage of Benefits
Various credit cards offer different benefits, such as travel insurance, rental car coverage, or access to airport lounges. Having a backup credit card allows you to make the most of these advantages. If one card doesn’t have a specific benefit, your backup card might have it.
Improve Security
If you have a backup credit card, you can keep your main card in a safe location, such as a hotel safe or a hidden compartment in your luggage. This helps to lower the chance of losing or misplacing your main card when you are visiting unfamiliar places. Furthermore, if you have a backup card, you won’t have to use public ATMs as often. Public ATMs can be risky because they are more susceptible to card skimming and other security threats.
Problems You Can Face With Single Credit Card
Card Network Issues
In the United States, there are four main credit card networks: Visa, Mastercard, American Express, and Discover. Credit card networks help merchants and issuers process transactions.
Some credit card companies, like American Express and Discover, serve as both a network and an issuer. However, Visa and Mastercard are simply networks and have different issuers. If you have a Visa credit card, it means that a bank like Chase or Bank of America will give you the card. On the other hand, if you have a Mastercard credit card, it could be given to you by Citi or Wells Fargo.
Visa and Mastercard credit cards are commonly accepted in the United States and other countries. American Express and Discover cards are accepted less frequently, especially outside of the United States.
If your main credit card for everyday expenses is an American Express or Discover card. If you come across merchants who don’t accept Amex or Discover, it’s a good idea to have a Visa or Mastercard with you while travelling. During the trip, it might be a good idea to use only a Visa or Mastercard since they are accepted in many places. If a network has a problem and you can’t make purchases, you can use another card on a different network as a backup.
Bank or Issuer Problems
If your main card is lost, stolen, declined, or locked due to a fraud alert, you might need to have an additional card as a backup. It’s a good idea to have a backup card from a different bank than your main card, if you can.
If a bank or issuer suspects suspicious activity and locks all of your accounts while you’re travelling, you can use a card from a different bank as a backup plan. If all of your cards are from the same bank and there is an issue with your account, you won’t be able to use any of your cards until you resolve the problem. This could be a problem if you are in the middle of a transaction, in a hurry, or unable to reach your bank.
Danyal Ahmed, a writer for TPG credit cards, had his Citi Premier® Card locked by Citi for suspicious activity, even though he had set up travel alerts while in Hungary. Fortunately, he had multiple credit cards and was able to switch to his Chase Sapphire Reserve.
Tips to Ensure the Effectiveness of Backup Credit Card
Please select another card provider: Choose a second credit card from a different bank or credit card company than your main card. This means that if one card has a problem, the other card can still function properly.
Keep it apart or separate from each other: Keep your backup credit card in a separate place from your main card. If your wallet or bag is stolen, you won’t lose both cards at the same time.
Activate and test it: Before you go on your trip, make sure to activate your backup credit card. To ensure that it works, try making a small purchase or withdrawing cash. By doing this, you can identify and resolve any possible problems before you depend on it for your travels.
Don’t forget, having a backup credit card is important for your safety while you’re travelling. Having a credit card can help you prevent financial disasters, deal with problems related to your card, handle unexpected expenses, make use of benefits, and enhance your overall security. Before you go on your next trip, remember to bring an extra credit card so you can have a stress-free vacation!
What to Look for in a Travel-ready Credit Card Pairing?
No Foreign Transaction Fee
This annoying fee adds about 3% or more to every international purchase. Using credit cards with no foreign transaction fees can save you money whenever you make purchases while travelling.
Worldwide Acceptance
As I mentioned before, Visa and Mastercard cards are usually accepted by more retailers in other countries. However, there are sometimes exceptions. That’s why having two cards to choose from can provide you with more choices.
Different Payment Networks
Make sure to have a variety of different credit cards, so you don’t end up with two cards from the same company, like two Mastercards or two American Express cards. That can help improve the chances of one of your cards being successful.
Cards that Earn Rewards on Your Spending
When you travel, you usually spend more money on daily expenses. This includes eating out more often than you would at home, buying tickets to tourist attractions, and of course, purchasing souvenirs. Take advantage of your spending by using a card that gives you cash back. This way, you can use the cash back to reduce your spending when you receive a statement credit. You can also choose a travel rewards card, which means that the money you spend on this trip can be used to pay for your next adventure.
A premium travel rewards card, such as the Chase Sapphire Reserve®, can be useful even though it has a $550 annual fee. When you make dining purchases with Chase, you will earn 10 points for every $1 spent. If you dine at a restaurant that is not booked through Chase, you will earn 3 points for every $1 spent. The card also gives you a $300 credit each year for travel expenses. This credit can be used for things like hotels, flights, rental cars, taxis, tolls, and parking. It’s a helpful way to offset the annual fee.
When you reach the maximum limit on your credit, you will earn 3 points for every $1 you spend on travel. If you make travel-related purchases through the Chase portal, you will earn even more points: 10 points for every $1 spent on hotel stays and car rentals, and 5 points for air travel. When you redeem points for travel booked through Chase, each point is worth 1.5 cents. So, by making vacation purchases today, you can save more money for future travel.
Conclusion
The average American has four credit cards, but those interested in travel rewards may have more. Taking at least two cards is important for various reasons, including avoiding financial disasters, managing unexpected expenses, overcoming card issues, taking advantage of benefits, and improving security. Credit card options include Visa, Mastercard, American Express, and Discover. Bringing multiple cards can be frustrating if lost or stolen, so it’s best to have at least one in your hotel room safe. When traveling to another country, ensure your main credit card and any extra cards don’t charge fees for transactions made in foreign currencies. Having a backup card can also help you access benefits like travel insurance and ATMs.
In the United States, there are four main credit card networks: Visa, Mastercard, American Express, and Discover. These networks help merchants and issuers process transactions. If your main card is American Express or Discover, have a Visa or Mastercard with you while traveling. If your main card is lost, stolen, declined, or locked due to fraud alerts, have a backup card from a different bank. To ensure the effectiveness of a backup card, select another card provider, keep it separate from your main card, and activate it before going on your trip. Travel-ready credit cards should have no foreign transaction fees, worldwide acceptance, and different payment networks. Use cards that earn rewards on spending, such as the Chase Sapphire Reserve®, to offset the annual fee and save money for future travel.