How To Choose The Best Luxury Travel Card For Your Business

How To Choose The Best Luxury Travel Card For Your Business

If you’re a frequent business traveler and spend most of your time on airplanes and in hotels, it’s only natural to prioritize your comfort during those trips. After all, travel is a big part of your life, and it would be a shame if you spent it on sub-par user experience, especially if you can afford to play hard after working hard on your business trips.

That said, if you’re still using your personal credit card to pay for business travel, you may be missing out on the many benefits a dedicated luxury travel card for business can offer.

In this article, we’ll discuss the benefits of having a business luxury travel card, how to choose the best one, and how to get one in record time.

What Is A Luxury Travel Card?

A luxury travel card is a credit card that rewards you with luxury travel experiences when you use it to pay for certain purchases, frequently also related to travel. Traveling can be tiring and arduous, especially if you do it regularly. One solution is to travel in luxury, which means flying business and first class and staying in luxury hotels which can make your trips much more comfortable.

Sure, you can pay for these luxuries with your credit card or even with cryptocurrency using a crypto app, but these payment methods can only get you so far and can make things quite expensive. Plus, you’ll have to pay for things like airport lounge access separately. This is where travel rewards cards come in because most offer these and other perks just for being a cardholder.

So, if you want to make your business trips as comfortable as possible, getting a luxury travel card will make all the difference in the world.

Why Should Your Business Have A Luxury Travel Card?

Technically speaking, a personal travel rewards credit card should be more than enough to cover your travel expenses and get rewarded in the process. But why settle for good enough when there is a better way, especially if the alternative can significantly improve your life and your business's operations?

Here are some more benefits of having a luxury travel card for your business:

#1 Your business purchases won’t affect your credit score.

If you find yourself cheaping out on some of your travel expenses and looking for free stuff for old people when you travel, just because you’re worried about your credit utilization ratio, having a separate card for your business will come in handy.

This is because any business transaction you do with your business credit doesn’t show up on your personal credit history. Therefore, it won’t affect your credit score. This benefit ensures you don’t have to worry about your credit score every time you use your card on your trips.

#2 You’ll have an easier time tracking your business expenses.

If you take care of your business finances and taxes, you might find it hard to separate business and personal transactions if you only use one card for both. This problem can make you make mistakes in filing your taxes and potentially lose you some money.

So, instead of risking your finances using a single card, why not segregate your personal expenses from your business expenses from the start by using a separate business credit card? This move will make your life a lot easier and make it easier to manage your business’ finances. This is also heightened by the fact that business cards usually come with great expense-tracking features not available on personal cards.

#3 You can earn bonus perks or rewards while running your business.

Since your job requires you to travel a lot and you’ll need to pay for your travel expenses anyway, you might as well earn bonus perks or rewards when doing it.

And that is what owning a luxury travel card does for you and your business. The perks and rewards depend on the card you choose, but you can expect different combinations of airport lounge access, free hotel upgrades, welcome amenities, and much more.

Not only will you travel in comfort and style, but you’ll also earn some discounts for enjoying it!

#4 You will have more spending power for your business.

Sometimes, if you want to scale your business, you need to spend some extra dollars. To do that, you’ll usually need to take out a loan. Or will you?

If you only have one card for you and your business, your spending power is lower, lowering your credit limit. But by taking out a luxury travel card for your business, since businesses move much more money than personal accounts, you’ll have a much higher credit limit helping you scale your business.

So, depending on your situation, having that extra card for your business can give you that extra push, which can save you the hassle of taking out a loan whenever you need a bit of extra financial muscle.

How To Choose The Best Luxury Travel Card For Your Business

If you’re convinced but don’t know where to start, don’t worry! because we’re here to help. In this next section, we’ll discuss how you can choose the best luxury travel card for your business.

#1 Identify what perks or rewards would most benefit your business.

No two businesses are alike. Different companies require different solutions for their specific circumstances. The same is true with choosing a luxury travel card. The card best for your competitor may not necessarily be the best for you.

So, the very first step you should take when choosing a card for your business is to assess what perks or rewards would most benefit you. For example, if you mostly travel by plane and your business doesn’t have a fleet of cars, you probably won’t need the roadside assistance perk on some credit cards.

To help you decide, here are some common perks and rewards you might want in your luxury travel card.

  • No foreign transaction fees: Usually, when you use your credit card overseas, banks will charge you foreign transaction fees. So, if you find yourself flying overseas regularly or making purchases on Alibaba from China, you’ll want to ensure your card doesn’t charge you these fees.
  • Trip cancellation insurance: Some flights and travel arrangements, even luxury travel, are non-refundable, which means that even if you cancel your flight ahead of time, you won’t get your money back. So, if your business is quite unpredictable with lots of changing schedules, you might want to get a card that will offer trip cancellation insurance to help cover this risk.
  • Global Entry and PSA pre-check: No one likes lining up for PSA checks in the airport, but it’s unavoidable. Or is it? Another perk that some luxury travel cards offer is a global entry and PSA pre-check. Having these perks means you no longer need to line up for PSA checks whenever you travel to airports in the country!
  • Anniversary bonuses: If you like sticking to one credit card provider and you’re not planning on changing cards any time soon, you can look for cards that give anniversary bonus points. That way, you can expect between 6,000 to 15,000 points worth anything from $60 to $300 as a bonus every year, depending on the card.
  • Roadside assistance: Businesses that constantly travel by car to meet with clients will benefit from getting a card that offers roadside assistance. Having this perk means that if you or your driver pop a tire on the road, you can call your credit card provider and have them send you help for free.

#2 Compare APRs, annual fees, and other aspects of similar cards.

Once you’ve narrowed down your choices based on perks, you can further narrow them down by comparing their offers. You might be surprised that even though two cards offer the same perks and rewards, their offers can wildly differ.

If you’re not sure what to look for, here are some essential aspects you should consider to help you decide which card is the best.

  • APR: The first thing you should check is the Annual Percentage Rate (APR). This number is the total fees (including interest) you need to pay for the money you spend using the card. The higher the card’s APR, the higher the interest you pay. So, all else equal, the card with the lower APR is the better choice. The APR of luxury cards typically ranges from 17.99% to 27.99%.
  • Annual fees: After checking the card’s APR, compare the cards' annual fees. Annual fees for luxury cards range between $99 to $695, depending on the credit card provider and the perks that come with the card. Like the APR, the lower the annual fee, provided they both offer similar benefits. In other words, what really matters is that you compare the annual fee to the annual benefits and choose the card that offers the lowest cost/benefits ratio.
  • Sing-up offers and welcome bonuses: Some cards offer low introductory APRs and juicy  sign-up bonuses for new customers. Sometimes they offer 0% APR in the first year. Other times, they’ll waive the first annual fee. This option is up to personal preference, so pick the card that you think will offer the best introductory perks and sign-up bonuses for your business.
  • Rewards rate: The rewards rate is the rate at which you earn points for every dollar you spend using the luxury travel card. These rates vary according to the type of purchase, the credit card issuer, the loyalty program the card belongs to, etc. Make sure to choose the card that offers the best rewards rate for the type of purchases your business is most likely to make.
  • Recommended credit score for card approval: Lastly, you should know that luxury travel cards are not for everyone. Each card provider has its particular set of eligibility criteria, but they all start by checking your credit score. Some providers are fine with a good credit score, while others require an excellent credit score. So, before you fill out your applications, ensure you meet the minimum credit score requirements to be approved.

#3 Assess the credit provider’s customer service.

If you’re still left with different card choices after going through the previous step, their customer service can help you choose which one to pick.

To do this step, try calling them to inquire about their card. Take note of everything that stands out in terms of customer service. Are they polite? Are they willing to go the extra mile for you? Do they know where they should refer you?

How To Get A Luxury Travel Card

By now, you should already know what card or cards want for your business. All that’s left is getting it. The problem is that while you can freely apply for many rewards credit cards, most, if not all, high-end luxury travel cards are invite-only. This method of onboarding new customers means that the bank will only invite you if you stand out and meet their membership criteria.

However, don’t let this discourage you because there are tips to increase your chances of getting an invitation:

#1 Open a regular account on the bank or credit card provider of your choice.

All luxury travel card providers only offer their cards to existing customers. So, if you already know what card you want to get, you need to start by getting a regular business credit card with your chosen provider.

This step will ensure that you will be on their radar once they start to look for new customers.

#2 Increase your credit score and annual spending.

After you get your card, it’s time to stand out. You can do this by increasing your credit score through general good practice in terms of credit card use. This means always making payments on time every billing cycle, keeping your credit utilization low, slowly increasing your annual spending, etc.

Doing this will signal to the bank that you’re a responsible, high-spending client, and they shouldn’t worry about you defaulting on your credit.

#3 Accept the invitation.

If everything goes well and you fulfill the credit card provider’s criteria, they will eventually send you an invitation to apply for their luxury travel card. However, even if they don’t, it might be a good idea to write the local branch’s manager a letter requesting the invitation. It never hurts to ask.

Once you get the invitation, all that’s left is for you to accept it and start enjoying a better travel experience on every business trip.

The Bottom Line

Getting a luxury travel card for your business is not easy, but it is undoubtedly fulfilling. It would allow you to enjoy the fruits of your labor and will make every effort you put into your business worth it.

If you’re a frequent traveler and spend most of your time in airplanes and hotels, getting one of these cards will drastically improve your life. Invest in yourself and give yourself a treat by getting a luxury travel card right now.

Article by Jordan Bishop