Cruise line credit cards promise smooth sailing with exclusive perks and discounts, but do they deliver? For many travelers, these cards create more financial waves than rewards. If you’re wondering whether these shiny offers are worth it, let’s uncover the hidden drawbacks and help you steer toward smarter travel choices.
1. Limited Rewards Variety for Cruise Line Credit Cards
When you opt for a cruise-branded credit card, you’re often locking yourself into a narrow rewards system. These cards typically offer points or perks that are only valuable when booking with that specific cruise line. This can be problematic if:
• You enjoy cruising with different companies
• Your travel plans change, and you want to explore other vacation options
• You’d like to use rewards for flights, hotels, or other travel expenses
General travel cards like the Chase Sapphire Reserve, Capital One Venture Rewards, or American Express Platinum offer much more flexibility. With those cards, you can redeem points across a wide range of travel options, not just cruises.
2. High Annual Fees
Cruise-branded cards often come with steep annual fees, typically ranging from $50 to $100 or more, which can significantly diminish any potential savings. Consider the following:
• Fees are often higher than those on general travel credit cards
• If you’re not cruising frequently, it’s hard to justify the cost
• Introductory fee waivers may lure you in, but the full fee kicks in after the first year
Before committing, carefully calculate whether the benefits outweigh the annual cost based on your actual cruise frequency.
3. Limited Travel Perks
While cruise cards may offer specific onboard benefits, they often fall short in other travel-related perks. Additionally, some cards impose blackout dates and capacity controls, restricting when you can redeem your points for cruises, especially during peak travel periods.
You might also miss out on:
• Airline fee credits
• Airport lounge access
• Comprehensive travel insurance
• Rental car coverage
General travel cards typically provide a broader range of benefits that can enhance your entire travel experience, not just the cruise portion.
4. Complicated Redemption Process
Using your cruise card rewards shouldn’t feel like navigating a maze, but unfortunately, it often does. Some cards also have expiration dates on points, meaning you could lose your hard-earned rewards if you don’t use them within a specified timeframe. Moreover, some cards have minimum spending requirements to earn sign-up bonuses; if you don’t meet these thresholds, you’ll miss out on the promised perks.
Common frustrations include:
• Points that can only be used for select onboard credits or specific cruise lines
• Rigid redemption windows that may not align with your travel plans
• Complex rules and restrictions that make it difficult to maximize value
In contrast, flexible travel rewards cards often offer simpler, more straightforward redemption options across various travel categories.
5. Low Earning Potential
Cruise-branded cards may disappoint when it comes to earning rewards on everyday purchases.
You might encounter:
• Higher earning rates limited to cruise-related spending
• Low rewards for common categories like groceries or gas
• Points that have less value when redeemed outside of cruises
General travel cards often provide better earning rates across a wider range of spending categories, allowing you to accumulate rewards more quickly.
6. Better Options Available
The credit card market is full of alternatives that may serve you better than a cruise-specific card. Consider these options:
• Chase Sapphire Reserve: Offers high earning rates on all travel and dining, plus valuable perks like airport lounge access
• Capital One Venture X Rewards: Provides 2x miles on every purchase and includes travel credits and lounge access
• American Express Platinum Card: Offers luxury travel benefits and flexible points redemption options
These cards provide value beyond just cruises, making them more versatile for various travel styles and preferences.
7. High Interest Rates
Cruise-branded cards often come with higher interest rates compared to standard credit cards. This can be problematic if:
• You occasionally carry a balance
• You’re enticed by rewards and end up overspending
• The value of perks is outweighed by interest charges
For example, some retail-oriented cards (including cruise cards) can have APRs as high as 26.7%. If you don’t pay your balance in full each month, these high rates can quickly negate any benefits the card offers.
8. Limited Cruise Line Partnerships
Most cruise-branded cards are tied to a single cruise line or family of brands. This can be restrictive if:
• You like to try different cruise lines
• Your preferred itineraries aren’t always available with one company
• You want to take advantage of deals across multiple cruise lines
A general travel card allows you to earn and redeem rewards with any cruise line, giving you more flexibility in your vacation planning.
9. Foreign Transaction Fees
Some cruise line credit cards charge foreign transaction fees, which can add up quickly when you’re making purchases in ports of call. These fees typically range from 1% to 3% of each transaction made abroad.
Using your cruise card for international purchases could result in unexpected charges that eat into your vacation budget. In contrast, many travel-focused credit cards offer no foreign transaction fees, saving you money on your international adventures.
Understanding Cruise Line Credit Cards
Cruise line credit cards seem like they are tailored for cruise enthusiasts, offering perks like onboard credits, discounts on excursions, and priority services. While these benefits may sound appealing, their rewards are often narrowly focused, with higher fees, limited earning potential, and inflexible redemption options compared to general travel cards.
Key Features and Drawbacks
- Perks: Onboard credits, discounts, and introductory bonuses.
- Limitations: Higher interest rates, limited use for non-cruise spending, and restrictive reward redemption policies.
Compared to General Travel Cards
General travel cards, such as the Chase Sapphire Reserve or Capital One Venture Rewards, offer:
More value for non-cruise expenses, making them suitable for travelers with diverse plans.
Flexible rewards across various travel categories.
Broader perks, including lounge access and travel insurance.
Closing Thoughts
While cruise-branded credit cards offer niche benefits for loyal cruisers, they often fall short in value for most travelers. For better earning potential, more flexibility, and comprehensive travel perks, a general travel rewards card is likely the smarter choice for your wallet.
