Travel credit cards can unlock incredible perks, but simple mistakes can cost you big time.
Using the right travel credit card can mean free flights, luxury hotel stays, and valuable perks that make your trips more comfortable. But if you’re not paying attention, it’s easy to miss out on rewards or rack up unnecessary fees. Many travelers assume their card will automatically work in their favor, only to realize later that they’ve lost points, paid hidden charges, or failed to take advantage of important benefits.
A great travel credit card is only as good as how you use it. Small errors—like using the wrong card abroad or missing a sign-up bonus—can leave money on the table or even put you in financial trouble. Avoiding these common mistakes will ensure you get the most out of your travel rewards while keeping your finances in check.
If you’re serious about maximizing your travel credit card, here’s what you need to watch out for.
Ignoring foreign transaction fees and paying unnecessary charges.
Many travelers assume all travel credit cards are designed for international use, but some still charge foreign transaction fees—usually around 3% per purchase, according to Nerd Wallet. That might not sound like much, but on a $2,000 trip, you’re throwing away $60 for no reason.
Before you travel, check if your card has foreign transaction fees. If it does, switch to one that doesn’t. Plenty of travel credit cards offer fee-free international purchases, so there’s no reason to pay extra just for using your card abroad.
Forgetting to notify your bank about international travel.
Nothing kills the excitement of a trip faster than having your credit card declined in a foreign country because your bank flagged it as suspicious activity, as reported by HDFC Bank. While many banks now track travel patterns better, some still freeze accounts if they detect unexpected international charges.
A quick call or an online travel notification can prevent this hassle. Some card issuers allow you to set travel alerts through their app, making it even easier. The last thing you want is to be stranded in another country with no way to pay for your hotel or dinner.
Missing out on sign-up bonuses by not meeting spending requirements.
Travel credit cards often lure you in with massive sign-up bonuses, but they come with a catch—you have to spend a certain amount within a set timeframe, usually the first three months, as stated by Erica Lamberg of CNBC. If you don’t hit that requirement, you lose out on potentially thousands of dollars in points or miles.
Plan your spending carefully when opening a new travel card. If the minimum spending requirement is high, consider using it for necessary expenses like rent, utilities, or groceries to ensure you hit the bonus threshold without unnecessary spending.
Carrying a balance and paying high interest rates.
Travel credit cards often come with great perks, but they also tend to have higher interest rates than regular credit cards. If you’re not paying off your balance in full each month, the interest charges can quickly wipe out any rewards you earn.
Always treat your travel credit card like a debit card—only charge what you can pay off in full. Otherwise, those free flights and hotel stays could end up costing way more than they’re worth.
Booking travel purchases on the wrong card and missing out on perks.
Many travel credit cards offer extra rewards when you use them for specific purchases like flights, hotels, or rental cars. But if you accidentally use a different card with no bonus categories, you’re losing out on valuable points.
Check your card’s reward structure before booking travel. If your card offers 3x or 5x points on airfare, make sure you’re using it for flights. Small optimizations like this can help you rack up rewards much faster.
Redeeming points for poor-value rewards.
Not all travel redemptions are created equal. Using points for cash back or statement credits often gives you far less value than booking flights or hotels. For example, some airline miles are worth double when redeemed for flights compared to their cash equivalent.
Before redeeming, check how much your points are actually worth. Websites like The Points Guy provide valuations to help you determine the best redemption options. Always aim for the highest value per point to get the most out of your rewards.
Forgetting about travel insurance and purchase protections.
Many premium travel credit cards come with built-in travel insurance, rental car coverage, and purchase protection, but a lot of people don’t realize they have these benefits. This means they either skip insurance they already have or pay extra for coverage they don’t need.
Before purchasing separate travel insurance, check what your card covers. Some offer trip delay reimbursement, lost baggage insurance, and rental car coverage at no extra cost—saving you money and giving you peace of mind.
Using your points for cheap flights instead of expensive ones.
It’s tempting to use your points as soon as you have enough for any flight, but not all redemptions give equal value. Using miles on inexpensive domestic flights might not be the smartest move when those same points could get you a first-class international ticket.
If possible, save your points for high-value redemptions—like long-haul flights or premium cabins. A little patience can turn your rewards into a luxury experience instead of just a basic flight.
Letting points and miles expire without using them.
Most travel credit card rewards don’t expire as long as you keep your account open, but some programs have expiration rules if your account is inactive for too long. Losing miles you’ve spent years collecting is a painful mistake.
Check your rewards program’s expiration policy and keep your account active by making small purchases or transferring points to a travel partner. Even a single transaction can reset the expiration clock and keep your points safe.
Closing your card too soon and losing your rewards.
If you cancel a travel credit card without redeeming your points first, you could lose them permanently. Some programs allow you to transfer points before closing, but others require you to use them while your account is active.
Before closing a card, make sure your points are transferred or redeemed. If the card has an annual fee and you no longer want it, consider downgrading to a no-fee version instead of canceling outright to preserve your rewards.
Travel credit cards can be powerful tools—if you use them wisely.
When used correctly, a travel credit card can save you hundreds (or even thousands) of dollars on flights, hotels, and upgrades. But small mistakes can eat away at those rewards and leave you with unexpected costs.
By avoiding these common pitfalls, you’ll maximize your points, minimize fees, and make every trip more rewarding. Travel smarter, and you’ll never miss out on the benefits your credit card has to offer.