Have you ever wished you could embark on the trip of a lifetime only to find yourself bogged down by a bad credit score? Fear not, adventurous spirits! We are here to tell you that traveling the world despite a less-than-stellar credit score is possible. In this post, we will guide you through the ins and outs of travel credit cards specifically tailored for those with bad credit. Prepare to be amazed as we uncover the secrets to enjoying free flights, luxury stays, and more— all while working on improving your credit!
Travel Credit Cards For Bad Credit Table of Contents
Why Opt for a Travel Credit Card?
If you're someone who enjoys exploring new destinations, a travel rewards credit card can help you accumulate points or miles that can be redeemed for flights, hotels, and other travel expenses. These cards typically come with a wide range of perks, such as free checked bags, airport lounge access, and travel insurance—all of which can save you a considerable amount of money.
Bad Credit Doesn't Mean No Travel Credit Card
You might think that your poor credit history eliminates the possibility of enjoying the benefits of a travel credit card. However, there are card options available specifically for people with less-than-perfect credit. The key is to look for secured travel credit cards, where you put up a cash deposit upfront as collateral. This type of card helps minimize the issuer's risk while still providing you with the opportunity to earn travel rewards.
Top Travel Credit Card Options for Bad Credit
- Discover it® Secured Credit Card: This card offers 2% cashback at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cashback on all other purchases. The Discover it® Secured Credit Card also has no annual fee, and the cashback earned can be redeemed for travel rewards through the Discover website.
- Secured Mastercard® from Capital One: Although it doesn't offer specific travel rewards, this secured card comes with no annual fee and provides access to a higher credit line after making on-time payments for the first six months. You can use this increased credit to your advantage by making travel-related purchases and diligently paying them off each month.
- AeroMexico Visa® Secured Card: The AeroMexico Visa® Secured Card earns 1 mile per $1 spent on gas and grocery store purchases, and 2 miles per $1 spent on AeroMexico airline tickets. This card also comes with a sign-up bonus, a free checked bag, and an annual companion certificate, making it an excellent choice for those looking to fly with AeroMexico.
Be Responsible with Your Travel Credit Card
Remember, the goal of using a travel credit card is to not only earn rewards but also rebuild your credit. To do that, you must:
- Pay your balance on time and in full every month
- Keep your spending well below your credit limit
- Maintain a low credit utilization ratio
- Monitor your credit reports and dispute inaccuracies
By taking these steps, your credit score should begin to improve over time, eventually giving you access to even better travel credit card options.
Travel Credit Cards For Bad Credit Example:
Imagine Susan, an avid traveler who currently has a credit score of 580. After researching her options, Susan decides to apply for the Discover it® Secured Credit Card. She puts down a $300 deposit and begins using the card responsibly. Soon, she is earning cashback on her gas and restaurant purchases. Once she accumulates enough rewards, she redeems them for a discounted flight to her dream destination. Simultaneously, Susan’s diligent payments, low credit utilization, and responsible spending habits result in an increase in her credit score. Eventually, she graduates to an unsecured travel rewards credit card with even more significant benefits and perks.
Exploring the world should not be limited by your credit score. With the appropriate travel credit card for bad credit, you can indulge your wanderlust while simultaneously rebuilding your credit. So, get ready to pack your bags and embark on a new adventure! If you found this guide informative, don't hesitate to share it with your fellow travelers or explore more articles on Flik Eco for even more personal finance insights.