Are you a frequent traveler looking for ways to make your trips more comfortable and convenient? Have you considered applying for a secured business credit card? Secured cards are a great option for those with limited or poor credit history, as they require a security deposit and can help you build or rebuild your credit. But did you know that they also come with a variety of travel perks, including access to airport lounges? In this article, we’ll explore the benefits of secured cards for frequent travelers and how they can enhance your travel experience.
What Are Secured Business Credit Cards?
Before we dive into the travel perks, let’s first understand what secured business credit cards are and how they work.
Secured business credit cards are similar to traditional credit cards, but they require a security deposit to be approved. This deposit acts as collateral and is typically equal to the credit limit of the card.
Secured cards are a great option for those with limited or poor credit history, as they can help you build or rebuild your credit. By using the card responsibly and making timely payments, you can increase your credit score over time.
How Do Secured Cards Help with Travel?
Easier Credit Application Process
One of the biggest benefits of secured cards for travelers is the easier credit application process. Traditional credit cards often require a high credit score and a lengthy application process, which can be a barrier for those with limited or poor credit history.
Secured cards, on the other hand, have more lenient requirements and a simpler application process. This makes it easier for frequent travelers to obtain a credit card and enjoy its benefits, including travel perks.
Access to Airport Lounges
One of the most exciting travel perks that come with secured cards is access to airport lounges. Airport lounges offer a comfortable and quiet space for travelers to relax, work, or freshen up before their flight. They also often provide complimentary food and drinks, Wi-Fi, and other amenities.
With a secured card, you can gain access to airport lounges through programs such as Priority Pass or LoungeKey. These programs have partnerships with various lounges around the world, allowing you to enjoy their benefits regardless of the airline or class of your ticket.
Travel Insurance and Protection
Secured cards also come with travel insurance and protection, providing peace of mind for frequent travelers. This can include coverage for lost or delayed baggage, trip cancellation or interruption, and even emergency medical expenses.
Some secured cards also offer rental car insurance, which can save you money on expensive rental car insurance fees. This coverage typically includes collision damage waiver and theft protection.
No Foreign Transaction Fees
Another perk of secured cards for travelers is the absence of foreign transaction fees. Traditional credit cards often charge a fee for purchases made in a foreign currency, which can add up quickly for frequent travelers.
With a secured card, you can avoid these fees and save money on your international purchases. This can be especially beneficial for business travelers who frequently make purchases in different currencies.
Rewards and Cashback
Many secured cards also come with rewards and cashback programs, allowing you to earn points or cashback on your purchases. These rewards can then be redeemed for travel-related expenses, such as flights, hotels, or car rentals.
Some secured cards also offer bonus points or cashback for specific categories, such as travel or dining. This can be a great way to save money on your travel expenses and make your trips more affordable.
Using Secured Cards for Duty-Free Shopping
One of the lesser-known benefits of secured cards is their use for duty-free shopping. Duty-free shopping refers to the purchase of goods that are exempt from certain taxes and duties, typically when traveling internationally.
How Do Secured Cards Help with Duty-Free Shopping?
When traveling internationally, you may come across duty-free shops at airports, cruise ports, and border crossings. These shops offer a variety of goods, including alcohol, tobacco, cosmetics, and more, at a discounted price.
However, to take advantage of these discounts, you must pay with a credit card. This is where secured cards come in. As mentioned earlier, secured cards can be used just like any other credit card, making them a great option for duty-free shopping.
Benefits of Using a Secured Card for Duty-Free Shopping
Using a secured card for duty-free shopping can offer several benefits, including:
- Lower costs: By taking advantage of duty-free shopping, you can save money on goods that would typically be subject to taxes and duties.
- Convenience: Using a secured card for duty-free shopping is convenient, as you can make purchases without having to exchange currency or carry large amounts of cash.
- Building credit: As mentioned earlier, using a secured card responsibly can help you build credit. This can be beneficial for business owners who travel frequently and make duty-free purchases.
Read this guide on secure card usage if you are truly eager legal aspects of international secured card usage.
How to Choose the Right Secured Card for Travel
With so many secured cards on the market, it can be overwhelming to choose the right one for your travel needs. Here are some factors to consider when selecting a secured card for travel:
Annual Fee
Some secured cards come with an annual fee, while others do not. If you plan on using the card primarily for travel, it may be worth paying an annual fee for the added benefits and perks. However, if you are on a budget, you may want to opt for a card with no annual fee.
Rewards Program
If you are looking to earn rewards or cashback on your travel expenses, be sure to choose a secured card with a rewards program that aligns with your spending habits. For example, if you frequently travel for business, a card with bonus points for travel-related expenses may be a better fit for you.
Foreign Transaction Fees
If you are a frequent international traveler, it is essential to choose a secured card with no foreign transaction fees and policies. This can save you a significant amount of money on your purchases abroad.
Travel Insurance and Protection
Consider the type and extent of travel insurance and protection offered by the secured card. If you frequently travel with expensive equipment or have pre-existing medical conditions, you may want to opt for a card with more comprehensive coverage.
Additional Perks
Some secured cards come with additional perks, such as airport lounge access, concierge services, or hotel upgrades. Consider which perks are most important to you and choose a card that offers them.
Real-World Examples of Secured Cards for Travel
Here are some examples of secured cards that offer great travel perks:
Capital One Secured Mastercard
The Capital One Secured Mastercard is a great option for those looking to build or rebuild their credit while enjoying travel perks. It has no annual fee, no foreign transaction fees, and offers travel accident insurance and auto rental collision damage waiver.
Discover it Secured Credit Card
The Discover it Secured Credit Card is another excellent option for travelers. It has no annual fee, no foreign transaction fees, and offers cashback on all purchases. It also has a rewards program that allows you to redeem your cashback for travel-related expenses.
Citi Secured Mastercard
The Citi Secured Mastercard is a great choice for those looking for a secured card with a rewards program. It has no annual fee, no foreign transaction fees, and offers cashback on all purchases. It also has a rewards program that allows you to redeem your cashback for travel-related expenses.
Conclusion
Secured business credit cards are a great option for frequent travelers looking to build or rebuild their credit. They come with a variety of travel perks, including access to airport lounges, travel insurance and protection, and no foreign transaction fees.
When choosing a secured card for travel, consider factors such as the annual fee, rewards program, foreign transaction fees, and additional perks. With the right secured card, you can enhance your travel experience and save money on your trips.
