Your everyday spending can fund your next trip. Here's how to choose the card that actually makes that happen.
June 3, 2026
The Big Picture: Americans put $3.4 trillion on general-purpose credit cards in 2024 — how much of that came back to you?" (CFPB’s Dec 2025 report)
Choosing a travel credit card sounds straightforward until you realize there are dozens of them, all making slightly different promises about points, miles, lounges, and fees. It's not obvious how to compare them, and card issuers don't exactly make it easy.
The case for getting this right is simple. According to the CFPB's December 2025 Consumer Credit Card Market Report, Americans put $3.6 trillion on credit cards in 2024 — and rewards cards accounted for the overwhelming majority of that spending. That's an enormous amount of everyday purchasing that could be working harder for the people doing it.
The best travel credit card is the one that matches how you actually travel, not the one with the flashiest marketing, says Melissa Middlestadt, a travel writer at My Beautiful Passport. "Some people want luxury perks, while others just want to save money and travel more often. The smartest strategy is finding a card that supports your travel style and makes trips feel easier, not more complicated."
Beyond the points, a good travel card comes with a set of protections and perks that quietly save you money:
Trip delay or lost baggage insurance
Annual travel or statement credits
Primary rental car insurance
Free checked bags
Airport lounge access
TSA PreCheck or Global Entry credits
If you're intentional about your spending — setting up autopay for recurring bills, paying your balance in full each month — you can rack up points without paying a cent in interest. All major credit cards also carry zero liability protection, so you're not on the hook for unauthorized transactions.
Even small habits add up faster than most people expect. Here's how everyday spending like groceries and coffee can quietly build your travel fund.
A road trip to see family is a different financial situation than a summer in Europe. The card that's perfect for one isn't always right for the other. Here's where they diverge.
When you make purchases in a foreign currency — whether you're abroad or buying online from an international retailer — many cards add a foreign transaction fee. It's typically 3% of each purchase.
That adds up fast. Spend $3,000 on a trip and a 3% fee costs you $90 — money you could have put toward your next adventure. Look for travel cards that waive this fee entirely.
Some cards offer dynamic currency conversion, which lets you pay in your home currency while abroad. It sounds convenient, but it comes with its own fees and an inflated exchange rate. Paying in the local currency is usually the better call.
Also worth checking: not all payment networks are accepted everywhere. Some cards have wide global acceptance, while others can be harder to use in some countries. Know what's in your wallet before you go.
If you're planning road trips, domestic flights, or staycations, the foreign transaction fee question is irrelevant. Focus instead on cards that earn well on gas, dining, and domestic airline purchases. Bonus or rotating category cards can give you extra points on spending you're already doing.
Flight prices and travel plans can change quickly, so look for credit cards that give you flexible redemption options instead of locking you into one airline or hotel brand, says Middlestadt. "It gives you more freedom to book the best route, timing, or deal instead of trying to force a trip to fit your points."
Travel rewards come in three main types: points, miles, and cash back. Each has trade-offs.
Points | Miles | Cash Back | |
Pros | High redemption value when you use transfer bonuses and partner deals | High redemption value when you use transfer bonuses and partner deals | Simple and flexible |
Cons | More strategy required | More strategy required | Fixed value — no upside |
Redeem for | Travel, transfer partners, gift cards, cash back | Travel, transfer partners, gift cards, cash back | Statement credits, gift cards, direct deposit, travel |
The general advice from experienced points travelers: prioritize transferable points where you can.
You can use those rewards to book many more airlines and hotels that way — and get greater value for fewer points. Co-branded cards are good to have to help you build your balance, get free checked bags, free rooms, and upgrades.
Flexible points are often worth more than fixed miles because they can be moved to wherever they're most valuable.
Sign-up bonuses are one of the fastest ways to accumulate points. The key is not to overspend to hit the threshold. Instead, time your application around a large purchase you were already planning to make — a home repair, a flight, a season of recurring bills.
"Time larger purchases around bonus categories or welcome offers. It's one of the easiest ways to accelerate rewards without changing your lifestyle much.
If a merchant charges a processing fee for credit card payments, do the math first. Sometimes the fee eats into the value of the points you'd earn.
A card with an annual fee isn't automatically a bad deal. It depends on whether you use what you're paying for.
"Annual fees are worth it when the value you actually use exceeds what you pay," points out Middlestadt. "I think people get too focused on the fee itself instead of asking: am I getting more back than I'm spending? If a card saves you money on things you already use — like travel insurance, lounge access, checked bags, or rewards redemptions — the annual fee can pay for itself surprisingly quickly."
Many travel cards include trip cancellation and interruption coverage, lost or delayed baggage protection, travel accident insurance, and rental car coverage. These can be genuinely useful — but read the rules. Restrictions and exclusions vary significantly across cards.
For domestic travel, a general travel rewards card gives you the most flexibility. You can transfer points to multiple travel partners rather than being locked into one airline or hotel chain. That means fewer blackout dates, more redemption options, and the occasional bonus offer where points go further.
You also earn on everyday spending — not just flights and hotels.
If you're loyal to a specific airline or hotel group, a co-branded card makes sense. The brand-specific perks (free checked bags, priority boarding, room upgrades, free breakfast) can add up to real value if you travel with that brand regularly.
Just be honest with yourself about how loyal you actually are. Airline miles and hotel points only work if you're using the right airline and staying at the right hotels.
Not sure which type of co-branded card fits your travel style? Here’s a full breakdown of airline vs. hotel credit cards to help you decide.
This is non-negotiable for international travel. A card with a 3% foreign transaction fee will cost you on every single purchase abroad. Find a card that waives it.
Most US credit cards use chip-and-signature technology. Most of the rest of the world — Europe, Canada, Australia, New Zealand, parts of Latin America and Asia — uses chip-and-PIN. You likely won't run into problems at restaurants and hotels, but standalone kiosks (train stations, parking meters, unattended payment terminals) sometimes require a PIN.
Contact your card issuer before an international trip and request a PIN. Some issuers use the same PIN as your cash advance PIN; others set a separate one for purchases. Either way, having it before you leave is worth the five-minute call.
Stack your earnings. Look for shopping portals like Rakuten, which let you earn additional rewards on top of what your credit card already pays. "You can shop through a portal and earn more rewards on the same purchase," says Widder.
Watch for card-linked offers. Periodically check whether your issuer has added promotional offers to your card. "There may be a 20% cash back deal for a specific retailer. If you add that offer to your card and make the purchase, you get the statement credit or bonus points on top of your regular earn rate," explains Widder.
Pay your balance in full. Carrying a balance on a travel card defeats the purpose of earning points. The interest will cost more than the rewards are worth. Pay in full each billing cycle.
Choose flexible redemption over convenience. Middlestadt's card allows her to redeem her points up to 12 months after a travel purchase. "I also like that the points can sometimes be used beyond just flights or hotels, so there's flexibility if life shifts and travel is not the priority that year."
If you travel a few times a year domestically, start with a general travel rewards card that earns well on your biggest spending categories and has no annual fee, or a low one you can justify.
If you travel internationally even once a year, make sure your card has no foreign transaction fee and request a PIN before your trip.
If you're loyal to a specific airline or hotel group, add a co-branded card to earn status faster and collect the brand perks — but keep a flexible card in your wallet too.
Ready to compare? Check out the top travel credit cards to find the right fit for you.
As Widder puts it: "Travel credit cards can be a fantastic tool to help you travel cheaper, better, and more often. If you take a little time to find out how to redeem your points, it can pay some serious dividends."
Should you get a travel credit card?
If you travel a few times a year, a travel credit card is worth it — the perks (lounge access, travel insurance, free checked bags, sign-up bonuses) add up fast. If you rarely travel, the value case is weaker. The deciding factor is whether you'll actually use what the card offers and whether you can pay your balance in full each month. A rewards card can still make sense — here's how non-travelers can get real value from credit card rewards without ever booking a flight.
What are foreign transaction fees?
A charge on purchases made in a foreign currency, either while traveling or shopping online from international retailers. The fee is typically 3% of the purchase amount. On a $3,000 trip, that's $90 you didn't need to spend. Many travel cards waive it entirely.
How do travel rewards programs work?
You earn points or miles on everyday spending (the "earn"), then redeem them for flights, hotels, statement credits, or gift cards (the "burn"). Some categories earn at a higher rate — travel, dining, and gas are common bonus categories. The more intentional you are about where you spend, the faster your balance grows.
Is an annual fee worth it?
It depends on how much of the card's benefits you actually use. Add up the value of the perks you'd realistically use in a year — lounge access, travel credits, free bags, rewards earned — and compare that to the fee. If the math works, it's worth it. If you're paying for benefits you won't touch, it's not.
What credit score do you need?
Most premium travel cards require a minimum score of around 670 (the "good" range). Cards with luxury perks typically want 700 or higher, sometimes 740+. Issuers also consider your debt-to-income ratio, how many cards you've recently opened, and your history with that issuer specifically.
Our mission at BestMoney is to make financial decisions less overwhelming. This article was based on objective criteria, including reward value, simplicity, and flexibility.
Researched and written by: Jackie Lam, BestMoney credit card expert and accredited AFC® financial counselor
Expert Interview: Melissa Middlestadt, travel writer at My Beautiful Passport and Jim Widder, Travel expert and writer of Travelwidsom, provided strategic insights.
Jackie Lam is a credit card writer for BestMoney.com and is based in Los Angeles. Her previous writing experience includes work for various publications. Additionally, Jackie is an accredited AFC® financial counselor and educator with a passion for helping artists, freelancers, and gig economy workers manage their finances.
