The best travel credit cards that aren’t travel credit cards

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If we’ve learned anything from the pandemic, it’s that things can change quickly. In 2019, travel was a major spending category for Canadians. But in 2020, we were grounded by the COVID-19 pandemic. So, it’s understandable if earning travel rewards aren’t at the top of your priority list. At the same time, you might not want to give up your travel goals entirely. Enter travel card alternatives—credit cards with travel benefits and features that are also useful for other types of spending. In this article, we’ll look at some of the variables to consider when choosing a travel-alt card, using the HSBC line of credit cards as an example. 

What is a travel-alt credit card?

Travel credit card alternatives, or travel-alt credit cards, are cards that offer rewards on travel spending and on other things, too. Traditional travel credit cards (with earning capabilities and rewards toward flights, hotels, cruises, car rentals and experiences like tours) are very popular in Canada. But, after 18 months of prohibited or intermittent travel, the utility of these cards is obviously diminishing.

Enter travel-alt credit cards. With these cards, you can collect rewards by spending on travel or non-travel items and enjoy flexible redemptions. You’re not locked into how you use or redeem your card. Travel-alt credit cards are a solid option for those who want to be able to redeem for gifts cards, merchandise or experiences, while keeping the option of travel rewards open, too. 

Features to look for in a travel-alt credit card

A good travel-alt card will allow you to earn points on purchases for travel and other categories. Additionally, it will belong to a points program that offers solid travel rewards but also allows you to redeem for other things like gift cards, merchandise, events or experiences—or even cash! Beyond these basics, there are other features and variables to watch for, too.

Travel insurance 

Worthwhile travel insurance can be costly, often adding hundreds of dollars to the price of every trip. It might be tempting to go without, but the potential cost of an uninsured injury or accident can make this a very risky choice. Credit cards with the benefit of travel insurance are an economical solution. 

When shopping for a card with travel insurance, look for protection that fits your travel style. For example, while the backpacker travelling light likely doesn’t need lost baggage coverage, the professional on a business trip with expensive computer equipment probably does. 

If your credit card doesn’t have travel insurance included as a perk, comprehensive coverage is worth looking into, even if you’re only travelling locally. The HSBC World Elite Mastercard, for example, carries wide-reaching travel, medical and car rental policies. 

Rewards program and travel boosts

The best kind of rewards program for a travel-alt card is one that lets you earn points redeemable toward travel and non-travel rewards. With the HSBC Rewards program, for example, you can redeem your points towards eligible travel expenses including flights, hotels, cruise or train tickets or tours. And a big plus: No blackout dates for redeeming. And you can use any travel agent or website to book. 

If travel is currently on hold for you, you can still take advantage of your HSBC Rewards points. Turn your earnings into merchandise like electronics or sports equipment or experiences, like helicopter rides or kayaking. You can also redeem for gift cards, to give as a present or just to treat yourself. And you can put your rewards into a Charitable Impact account to make donations. Of course, if you’re looking for cold, hard cash, you can apply your points to your HSBC mortgage, Mastercard or savings account.

If you’re still up for travelling, consider a card that boosts your earn rate on travel-related expenses, such as the HSBC World Elite Mastercard or the HSBC Premier World Elite Mastercard. With each, you earn 3% back in rewards points on travel spends (and a competitive 1.5% back on everything else).

Foreign exchange fees

When you make purchases in a different currency, most cards charge an additional 2.5 to 3% in foreign exchange fees. This can really add up. Some cards forgo this fee, like the HSBC World Elite Mastercard and the HSBC Premier World Elite Mastercard, which is welcome news for both frequent travellers and cross-border shoppers. 

Travel credits and other bonuses

You don’t have to forego travel-related perks with a travel-alt credit card. For example: The HSBC World Elite Mastercard and the HSBC Premier World Elite Mastercard offer a $100 travel enhancement credit that you can redeem for airline seat upgrades, airline baggage fees, or airport lounge passes. And don’t worry if you’re not traveling currently—this is an annual benefit.

Other perks to keep an eye out for are airport lounge passes, free wi-fi, and travel-related discounts.

Welcome bonuses

Whenever you’re looking for any type of new credit card, it’s a good idea to check out the welcome bonuses, as they can be extremely lucrative. Until January 31, you can get up to 100,000 HSBC Rewards points when you sign up for the HSBC World Elite Mastercard or the HSBC Premier World Elite Mastercard—that’s up to $350 towards travel. Or redeem points for gift cards or donations (a value of $329), merchandise ($294), or a statement credit ($210). There’s no rush to choose—HSBC points never expire.

How to choose a travel-alt card

If you want a credit card that has travel benefits but is also flexible, pay attention to these variables before you apply. A good travel-alt card works for you when you’re on the road and at home. 

Find a rewards program that is flexible, easy to redeem, and preferably with points that never expire.

Check your current credit cards for included insurance to avoid doubling up. Know that cards with travel medical insurance typically have higher annual fees.

Maximize your earnings with welcome bonuses. Make sure you read the requirements to earn as much as possible.

Look out for perks that will benefit you at home and away. Having no foreign exchange fees is a good one, as it will save you money when you shop in a different currency in person or online. 

If travel is largely on the back burner for you, it may be hard to justify using a travel rewards card for everyday spending. Travel-alt cards are a solid way to keep your options open while earning towards travel and more. 

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The best travel-alt cards from HSBC

HSBC World Elite Mastercard*

• Annual fee: $149 (rebated first year)
• Welcome offer: Earn up to a total 100,000 points ($500 value). That includes 20,000 points ($100) for getting the card, as well as 50,000 points ($250) when you spend $6,000 within the first 6 months of the account, 10,000 points ($50) when you add an authorized cardholder and 20,000 ($100) points as an anniversary bonus. Must apply before January 31, 2022.
• Rewards: Earn 3% in travel rewards on travel purchases and 1.5% on everything else; points are redeemable for travel and non-travel rewards. 
• Travel insurance: Worldwide emergency travel medical insurance of up to $1 million; baggage delay or loss; trip cancellation and trip interruption or delay; and car rental
• Foreign exchange fees: None
• Other benefits we like: Mastercard Airport Experiences Provided by LoungeKey; unlimited wi-fi from Boingo; 10% discount on select hotel bookings

Get more details about the HSBC World Elite Mastercard*

HSBC +Rewards Mastercard*

• Annual fee: $25 (rebated first year)
• Welcome offer: Earn up to 30,000 points ($150 value) after you spend $2,000 within 6 months of having the card. Must apply before January 31, 2022.
• Travel insurance: Optional, for an additional $69/year
• Rewards: Earn 0.75 of a point for every $1 spent; points redeemable for travel and non-travel rewards
• Foreign exchange fees: 2.5%
• Other benefits we like: Low interest rate of 11.9%

Get more details about the HSBC+ Rewards Mastercard*

HSBC Premier World Elite Mastercard

• Annual fee: $149 (rebated first year)
• Welcome offer: Earn up to 70,000 points and a $100 annual travel enhancement credit 
• Travel insurance: Worldwide emergency travel medical insurance of up to $1 million; baggage delay or loss; trip cancellation and trip interruption or delay; and car rental
• Rewards: Earn 3% in travel rewards on travel purchases and 1.5% on everything else; points are redeemable for travel and non-travel rewards 
• Foreign exchange fees: None
• Other benefits we like: Complimentary membership to the LoungeKey program; unlimited wi-fi from Boingo; and 10% discount on select hotel bookings

HSBC Premier Mastercard

• Annual fee: $0
• Welcome offer: Earn up to 5,000 points, or $50 cash back
• Travel insurance: Worldwide Emergency Travel Medical insurance of up to $1 million; trip cancellation; trip delay; baggage delay or loss; common carrier accidental death and dismemberment; and car rental
• Rewards: Choose between points or cash back, earn 0.75 points/0.75% cash back for every $1 spent; points are redeemable for travel and non-travel rewards
• Foreign exchange fees: 2.5%
• Other benefits we like: HSBC Premier Privileges which get you access to travel offers; complimentary membership to the LoungeKey program; unlimited wi-fi from Boingo; 10% discount on select hotel bookings

HSBC Advance Mastercard

• Annual fee: $0
• Welcome offer: 5,000 points or $50 cash back
• Travel insurance: Car rental insurance is included; opt-in to travel insurance for an additional $69/year 
• Rewards: Points redeemable for travel and non-travel rewards, and earn either points or cash back, earn 0.75 points for every $1 spent
• Foreign exchange fees: 2.5%
• Other benefits we like: n/a

The post The best travel credit cards that aren’t travel credit cards appeared first on MoneySense.

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