If travel is on your wish list and you're looking for a new credit card, then choosing the right travel card is key. Used correctly, you too can earn these rewards and even more benefits. Think discounted flights, hotel bookings, and travel packages. And extra benefits like a personal concierge, extra upgrades, and travel assistance. These rewards don't just help you save money on travel. They can help you have the best possible travel experience.
The first step is choosing the travel rewards card (or cards) that will pay you for the spending you already do. The idea is to earn money for your spending, but not to spend more just to earn rewards.
We've reviewed all the travel cards out there to bring you a list of only the best:
Best for Free Flights Through Multiple Airlines
Chase Sapphire Preferred Lets You Transfer Points to Other Airlines
Chase Sapphire Preferred offers a highly flexible rewards program. You can earn 2 points per dollar spent on travel and dining. You can earn an additional 1 point per dollar spent on all other purchases. And you can transfer your points to 10 other travel partners at full value.
How can you manage all these points? Through Chase's rewards portal, Chase Ultimate Rewards. And if you use Chase Ultimate Rewards to book your travel, you can book for 20% fewer points.
To get the Chase Sapphire Preferred card, you do have to pay an annual fee of $95. However, this fee is waived for the first year. You can then receive 50,000 bonus points if you spend $4,000 on the card in the first three months. As long as you earn more in rewards than you spend on the annual fee, then this annual fee can be well worth it.
Citi Prestige® Comes With a Long List of Travel Benefits
Citi Prestige® offers numerous advantages for European travelers. For example, you and a guest receive access to the airport lounges of the American Airlines Admiral's Club and the Priority Pass Select network, which has extensive locations in European airports.
You also receive a $100 fee credit towards an application in the Global Entry program, which offers you access to both the TSA PreCheck expedited domestic security screening program and fast-track kiosks when entering the United States from abroad. This card also features a $250 annual Air Travel credit that you can apply towards airline tickets, baggage fees, and in-flight purchases, as well as receiving a statement credit, up to $100 every 5 years, as reimbursement for your application fee for Global Entry or TSA Pre-Check. Another benefit is a complimentary fourth night for any hotel stay hotels booked through Citi Prestige® Concierge.
This card also has numerous benefits including trip cancellation and interruption coverage, lost and delayed baggage protection, and worldwide rental car insurance that covers you in every country without restrictions. Rewards include 3x points for airfare and hotel purchases, 2x points for dining and entertainment, and one point per dollar spent elsewhere. Citi ThankYou points can be redeemed for travel reservations, gift cards, and merchandise, or transferred to airline miles or hotel points. There is a $450 annual fee for this card and no foreign transaction fees.
Best Travel Rewards Card for Budget Travelers
Capital One® Venture® Rewards Credit Card Offers Unrestricted Travel Rewards Options
The Capital One® Venture® Rewards Credit Card is great for those how don't want to deal with travel restrictions or complex rewards programs. With this card, you can get 2 miles per dollar spent on all purchase. Each mile is worth 1 cent for travel, to be redeemed as a statement credit. For example, if you have 10,000 miles, you can get $100 towards your travel.
This card basically "erases" your travel purchases, since rewards are given as statement credits. These statement credits can apply to a broad range of travel costs. Think airfare, hotel stays, ground transportation, and more.
This card has a $59 annual fee, which is waived for the first year. After you sign up, you'll receive 40,000 bonus miles if you spend $3,000 within the first three months. That can amount to a $400 statement credit for your recent travel purchases.
How Travel Rewards Credit Cards Provide Free Trips
Different travel credit cards offer different kinds of rewards programs. Some create partnerships with travel brands, including airlines and hotels. These partnerships enable you to transfer points your points to eligible travel loyalty programs. What does that mean for you? Freedom to redeem your points through various travel programs - all from one card.
For example, Chase Ultimate Rewards partners with United Airlines and Marriott Hotels. Therefore, points earned through Chase Sapphire Preferred can be used with United MileagePlus or Marriott Rewards.
There's one caveat: before you redeem, make sure those partners offer the best deals. It's always worth shopping around. The loyalty program you prefer may not always have the best deal. Timing can play a big part in your options.
Also, the points-transfer rate may vary among the credit card’s rewards partners. That means it is possible that your transferred points will lose value if you transfer. In these cases, the points are better off redeemed for something of greater value.
Online Travel Booking Portals Make Travel Rewards Better
Travel-focused rewards credit cards may also come with travel booking portals. Think about how you can search for flights and hotels through online travel websites. Travel booking portals work the same way. Generally, these portals are how you can redeem most of your credit card travel rewards. They're also a good way to search for lower prices for your desired travel destinations.
As an incentive to book through these portals, you may also receive extra discounts or points. That means you may be able to save more on your travel than you would be booking elsewhere.
Travel Rewards Credit Cards Have Big Sign Up Bonuses
As if you couldn't already earn a lot of rewards through travel credit cards, some even offer sign up bonuses. These bonuses can amount to massive amounts of extra travel points and miles.
It's not uncommon for there to be a required amount of minimum spend to qualify. Typically, that spend has to happen in the first few months of opening the card. Therefore, if you're planning on making any large purchases, hold off. If you can make that purchase with your new travel rewards card, you can boost your rewards.
Statements Credits Mean Free Travel
Because travel rewards program can vary, there may be limits on your rewards. For example, many airline credit cards only give free flights to their airline. Similarly, other credit cards might only provide travel rewards from partnered brands. That's why it matters so much which card you choose. Some of the best out there allow you to redeem rewards for statement credits or rewards that work with any travel providers.
A statement credit is more or less like a refund (or partial refund) on your credit card balance. The end result is that your balance is reduced with the help of your rewards. However, your card may require your credit to be applied only to a certain type of purchase, such as travel.
Travel Rewards Credit Cards Also Have Many Travel Perks
There's a long list of travel benefits that can come with a travel rewards credit card. Not only can these benefits create a more enjoyable experience, they can also help save you time and money.
Personal concierge service is like having a personal assistant. Many credit cards provide this as a complimentary benefit to their customers. For example, all Visa Signature and World MasterCard® cards come with this perk. The more premium American Express credit and charge cards also offer free concierge services.
So what do concierge services do for you? A lot! Concierge agents can look up travel requests, book restaurant reservations, locate shopping items, and more. Depending on the difficulty of the request, agents may need a few days to respond. It's important to note that concierge agents will not use your credit card information to make purchases. They simply provide you the information you need and you do the rest.
Another perk to look for in a travel credit card is the lack of foreign transaction fees. Whenever you make a purchase internationally, you're subject to a fee of up to 3%. That's called a foreign transaction fee. And it can add up surprisingly fast. Think about it this way. If you buy two meals, one train ticket, and one event in one day on vacation, that's already four foreign transaction fees. And since the fee is 3% of the cost of the purchase, you can't even predict how high that number could get. That's why getting this fee waived can be so impactful for your budget.
Annual Fees Often Charged by Travel Rewards Cards
Annual fees are often found with travel credit cards because they provide an extraordinary amount of benefits. In fact, many of these benefits are not available from other credit cards.
The annual fees on travel rewards credit cards normally range from around $50-$500. It's only worth paying an annual fee if you can maximize the card’s rewards and perks beyond the fee. In other words, it's only worth paying an annual fee to the point where the total value of the rewards and perks exceed the cost of the annual fee. Otherwise, a well-rounded travel rewards credit card with no annual fee would be a better choice.
How To Maximize Your Travel Rewards
1. Earn More By Earning a Higher Status as a Frequent Flyer
To start earning bonuses, you have to earn a higher status as a frequent flyer. Typically, that means you have to fly a minimum of 25,000 miles with one carrier in a given period. Achieving a milestone of 50,000 miles in a given period will put you into an even higher category. That will enable you to score perks and first class upgrades. Higher reward levels may also be available, depending on the program.
To make the most of your travel, pick one airline carrier and stick with them to build status. If you’re planning on booking a number of international flights, check out which airlines partner with the carrier you choose.
2. Earn More by Combining with Hotel and Car Rental and Other Miles
If you want to get serious about racking up frequent flyer miles, take a look at your options and develop a strategy.
Many hotels and car rental companies offer programs that allow you to earn free nights. Lower your travel expenses even more by getting into these programs. Then stick with as few hotel networks to maximize bonuses and offers as possible. That way you can build them up in one place instead of scattering the points among several.
3. Save More by Finding the Lowest Cost-Per-Mile Flights
The trick to booking mileage runs is to find the lowest cost-per-mile flights.
The most dedicated mileage junkies will take long flights from the airport to the airport over a period of several days. Sometimes, these trips involve short layovers so that the flyer can rack up as many miles over several days as possible. If spending a lot of time in airports doesn’t appeal to you, this may not be a good idea.
Others frequent flyers will use a long, discounted flight to take a short visit to a distant place. For example, it could be a trip to Alaska for East Coasters or an island in the Caribbean for West Coasters. This way, travelers get to enjoy a destination (even if briefly) on top of earning additional miles.
4. Save More by Booking Flights with Layovers
When taking regular trips, booking the longest trip possible is the way to go. Gone are the days of non-stop flights for most mileage junkies. This is usually only possible for long, international routes. If you have some patience and know how to keep yourself entertained, you can earn a lot of additional miles by taking an out of the way route to and from your destination.
However, some long-distance, direct flights are preferred by many mileage junkies. For example, you could book a direct flight from Los Angeles to Johannesburg, South Africa. That flight alone could earn you about 22,000 miles. That's only 3,000 miles short of the required miles needed to fulfill preferred status. It can also be used to increase your status to an even higher level. The round-trip rate is typically just over $1,000, often in November and December each year (and potentially at other times during the year). At the time of publishing, round-trip fares were available for as low as $1,063, plus tax.
Of course, this kind of journey is only for those who don’t mind sitting in the same seat for a very long time. These flights range from 21-28 hours in length.
5. Don't Forget to Jump on Bonus Times
While it’s hard to predict if airline carriers will continue to do so, some carriers have been known to offer double miles on certain flights to help fill seats. Many mileage junkies will book these flights to get the most miles for their ticketing dollars, regardless of the destination. As soon as you know of your travel plans, look around for bonus times like these to see if they can help you quickly increase your miles for that dream trip.
Only Worth It When You Pay Off Your Monthly Balance
With credit cards, anyone could slowly lose control of their spending. After all, swiping a credit card doesn't have the same immediate implications on your money as swiping a debit card. And if that happens and your balance is too much to pay off at the end of the month, then there are a few issues that could happen.
One: you could lose more money to interest payments than earn in travel rewards. Two: if you don't get control of the balance that carries over each month, then you could end up in months (or worse, years) of debt.
If you stay on budget and pay your balance off every month (so you don't have to deal with interest payments), then a travel credit card would be a great fit. Like all good things, keep an eye on your goals and don't let anything slip through the cracks. Do that, and you'll be raking in those rewards in no time.
Credit Cards for Travel
|Best Credit Cards for Travel||Notable Features||Who It's Best For|
|Chase Sapphire Preferred||Earn bonus miles on travel and dining. Points can be transferred to partnered airline and hotel programs. Redeem rewards travel at a discount through Chase Ultimate Rewards.||People who want to earn travel rewards that can be transferred to multiple airline and hotel programs while getting different travel protections.|
|Capital One Venture Rewards||Earn unlimited 2X miles per dollar on all purchases.||People who travel often and don't want to restrict their rewards to a particular airline or hotel.|
|BankAmericard Travel Rewards||Earn 1.5 miles per dollar spent on all purchases.||People who want to earn travel rewards without any annual fee.|