While comparing our best travel credit cards might seem overwhelming at first, the rewards can be substantial: from discounted flights to suite upgrades and airport lounge access.
Beyond earning points and miles on everyday purchases, travel cards offer valuable perks that enhance your journey. This guide breaks down how to choose the right card, maximize rewards, and understand the benefits that matter most.
What Makes a Great Travel Credit Card?
The best rewards credit cards offer large come bonuses, flexible rewards, extra perks, and a reasonable annual fee. Here’s what to consider when choosing a travel credit card:
- Welcome bonus: Most premium travel cards offer substantial welcome bonuses, ranging from 50,000 to 100,000+ points. You'll need to meet a spending requirement within a set timeframe (typically three to six months) to earn these points. These bonuses can quickly translate into free flights, hotel stays, or other travel experiences.
- Rewards program: Travel cards offer either flexible or co-branded rewards. Flexible programs let you use points across multiple travel options or transfer them to partner airlines and hotels. Co-branded cards earn points or miles specifically for one airline or hotel chain, which works well if you frequently use that brand.
- Card perks: Premium travel cards include benefits that enhance your journey. Look for perks like Priority Pass lounge access, travel insurance coverage, Global Entry/TSA PreCheck credits, or hotel elite status. These extras often provide significant value beyond the basic rewards structure.
- Annual fees: High annual fees often indicate better card benefits. Instead of avoiding fees entirely, calculate the overall value you'll receive from the card's rewards and perks. If the benefits exceed the annual cost based on your travel habits, a higher fee card might be worth considering.
How to Choose the Best Travel Credit Card for You
Choosing the right travel card all depends on the type of travel you prefer, where you spend your money, and whether you are loyal to a specific hotel chain or airline. Here are a few things to consider to help you choose the best travel credit card for you:
- Hotel or airline loyalty: Consider whether you consistently fly one airline or stay with a specific hotel chain. Loyal travelers benefit more from co-branded cards that provide perks like priority boarding and free checked bags with airlines, or room upgrades and elite status with hotels. These cards typically offer higher earning rates with your preferred brand.
- Spending habits: Different travel rewards cards offer bonuses for spending money in certain categories. Some give you up to 4x rewards for everyday spending at grocery stores, while others offer spending bonuses for booking travel. Evaluate your expenses to find a travel credit card that will give you the most rewards for where you normally spend your money.
- Travel style: Some travel credit cards offer luxury lounge access, elite status at hotels and rental car programs, and other travel credits so you can travel in style. It’s important to review the perks of each travel credit card to find out which fits your overall travel style.
Flexibility: Some credit cards offer flexible points, while others are co-branded and only work with one loyalty program. If you prefer more options, choosing a flexible rewards card (like the Chase Sapphire Preferred) can give you more choices for redeeming your points.
How to Maximize Your Travel Credit Card Rewards
Maximizing your travel credit card rewards and benefits can help you “come out ahead” compared to the annual fee. Here’s how to take advantage of all the perks your card offers:
- Get your welcome bonus: Plan your credit card application around large purchases to meet minimum spending requirements. Most premium cards offer generous welcome bonuses worth hundreds in travel value. Use your card for regular bills and everyday spending to reach these thresholds within the specified timeframe.
- Use all credits: Don't let travel credits, lounge passes, or hotel certificates expire. Set calendar reminders for these perks as they significantly offset annual fees, but only if you use them.
- Use included insurance: Take advantage of your card's built-in travel protections and rental car coverage instead of purchasing separate policies. Review coverage details before trips to ensure eligibility.
- Consider transferring points: Compare transfer rates to airline and hotel partners, as they often provide better value than direct redemptions. Watch for transfer bonuses to maximize point value.
- Watch for fees: Track your rewards against annual fees to ensure positive value. Consider changing cards if your travel patterns shift, and always pay balances in full to avoid interest charges that negate rewards.
Common Fees and Hidden Costs to Watch For
Travel credit cards can upgrade your vacation—but it’s not without cost. Here are a few fees and costs to watch out for when signing up for a travel credit card:
- Annual fee: Most top-tier travel credit cards charge between $69 to $695 annually. Evaluate whether the card's benefits outweigh this cost based on your travel frequency and spending habits. Some cards waive the first year's fee, giving you time to assess the card's value.
- Interest charges: Credit card interest rates can exceed 25%, quickly erasing any rewards value. Always pay your statement balance in full by the due date to avoid these charges. If you need to carry a balance, look for cards offering 0% APR introductory periods.
- Foreign transaction fees: Many cards charge 3% to 5% on international purchases which includes online purchases from foreign merchants. For frequent international travelers or shoppers, choose cards that waive these fees—most premium travel cards do.
- Balance transfer fees: While transferring balances to cards with low introductory rates can save money, most charge 3% to 5% of the transferred amount. Calculate whether the interest savings justify this fee before making a transfer.
Pro tip: If you need to pay for a trip over time, look for a card with a 0% Annual Percentage Rate (APR) for the first few months instead of using a rewards card with high interest. And if you only travel once or twice a year, you might be better off with a basic travel card—paying high annual fees for premium perks like lounge access doesn't make sense if you rarely use them.
The Fine Print: What You Need to Know Before Applying
Before choosing a travel card, understand these key terms and conditions that affect your rewards and benefits:
- Welcome bonus requirements: Make sure you understand the requirements to hit your welcome bonus. Most require a minimum amount spent on the card within a few months—but returns and refunds may count against your spending to earn the bonus.
- Travel benefit restrictions: Insurance coverage often requires paying for the entire purchase with your card. Lounge access might have guest limits or visit caps. Travel credits may only apply to specific purchases or require enrollment. Hotel status benefits might exclude certain properties or rates.
- Interest rates and fees: Cards have APRs for different transactions. While purchases might have an 18% APR, cash advances could be 25%. Late payments often trigger higher penalty rates and can void any promotional 0% offers.
- Rewards limitations: Watch out for category spending caps and point expiration dates. Some cards restrict when you can redeem rewards or have blackout dates, and point values can vary based on how you redeem them.
Final Thoughts on Choosing a Travel Credit Card
Travel credit cards can transform your journey—from earning free flights to accessing airport lounges and securing valuable travel protections. The key is selecting a card that matches your travel style and spending habits.
While premium cards offer enticing perks, their value lies in how well they align with your actual needs. Remember, even the most rewarding travel card only delivers value when you actively use its benefits and understand how to maximize its features.
