Best Rewards Credit Card for Travel
Planning your next vacation? A travel rewards credit card can be your ticket to unlocking incredible perks, discounts, and free travel. But with so many options available, finding the “best” card can feel overwhelming. This comprehensive guide will walk you through everything you need to know to choose the perfect travel rewards credit card for your needs and travel style.
Understanding Travel Rewards Credit Cards
Before diving into specific card recommendations, let’s break down the fundamentals of travel rewards credit cards. These cards are designed to incentivize spending by offering rewards that can be redeemed for travel-related expenses or other benefits.
Types of Travel Rewards
Travel rewards come in several forms, each with its own advantages and disadvantages:
Points
Points are the most common type of travel reward. You earn points for every dollar you spend, and these points can be redeemed for flights, hotels, rental cars, and other travel expenses. The value of a point typically ranges from 0.5 cents to 2 cents, depending on the card and the redemption method.
Many travel credit cards offer bonus points for spending in certain categories, such as travel, dining, or groceries. This can significantly accelerate your rewards earning.
Miles
Miles are similar to points, but they are typically associated with specific airline loyalty programs. You earn miles for every dollar you spend, and these miles can be redeemed for flights on that airline or its partner airlines. The value of a mile varies depending on the airline and the redemption method, but it typically ranges from 1 cent to 5 cents.
Airline credit cards often offer additional perks, such as free checked bags, priority boarding, and access to airport lounges.
Cash Back
Some travel credit cards offer cash back rewards, which can be redeemed for statement credits or direct deposits into your bank account. While not strictly “travel” rewards, cash back can be used to offset travel expenses, making it a valuable option for some travelers.
Cash back rewards are typically expressed as a percentage of your spending, such as 1%, 1.5%, or 2%.
How Travel Rewards Credit Cards Work
Travel rewards credit cards typically have an annual fee, which can range from $0 to several hundred dollars. The annual fee is offset by the rewards and perks that the card offers. To maximize the value of a travel rewards credit card, it’s important to use it responsibly and pay your balance in full each month to avoid interest charges.
Many travel rewards credit cards offer a sign-up bonus, which can be worth hundreds of dollars in travel rewards. To earn the sign-up bonus, you typically need to spend a certain amount of money within the first few months of opening the card.
It’s also important to understand the terms and conditions of the card, including any restrictions on how you can redeem your rewards. For example, some cards may require you to book travel through a specific portal to redeem your points or miles.
Factors to Consider When Choosing a Travel Rewards Credit Card
Choosing the right travel rewards credit card depends on your individual needs and travel habits. Here are some key factors to consider:
Your Travel Style
How often do you travel? Where do you typically travel? What types of travel expenses do you incur? Your answers to these questions will help you determine which type of travel rewards credit card is best for you.
If you travel frequently and primarily fly with a specific airline, an airline credit card may be a good choice. If you travel less frequently or prefer to fly with different airlines, a general travel rewards credit card may be a better option.
Your Spending Habits
How much do you typically spend on your credit card each month? What types of purchases do you make most often? Your spending habits will determine how quickly you can earn rewards and whether you can meet the spending requirements for a sign-up bonus.
If you spend a lot on travel, dining, or groceries, look for a card that offers bonus points or miles in those categories. If you spend a lot on everyday purchases, look for a card that offers a flat rewards rate on all spending.
Annual Fee
How much are you willing to pay in annual fees? Travel rewards credit cards with higher annual fees typically offer more valuable rewards and perks. However, it’s important to make sure that the value of the rewards and perks outweighs the cost of the annual fee.
Consider whether you will actually use the perks offered by the card, such as airport lounge access or free checked bags. If not, you may be better off with a card that has a lower annual fee or no annual fee.
Rewards Redemption Options
How do you want to redeem your rewards? Some cards offer a wide range of redemption options, while others are more limited. Consider whether you prefer to redeem your rewards for flights, hotels, rental cars, statement credits, or other options.
Some cards may require you to book travel through a specific portal to redeem your rewards. This can sometimes limit your flexibility and choice.
Foreign Transaction Fees
If you travel internationally, look for a card that doesn’t charge foreign transaction fees. These fees can add up quickly, especially if you make a lot of purchases while traveling abroad.
Many travel rewards credit cards waive foreign transaction fees as a perk.
Other Perks and Benefits
Many travel rewards credit cards offer additional perks and benefits, such as travel insurance, purchase protection, and concierge service. Consider which perks and benefits are most important to you and look for a card that offers them.
Travel insurance can cover things like trip cancellation, lost luggage, and medical expenses. Purchase protection can cover damage or theft of purchases made with your card. Concierge service can help you with travel planning, restaurant reservations, and other tasks.
Top Travel Rewards Credit Cards
Now that you understand the key factors to consider, let’s take a look at some of the top travel rewards credit cards currently available:
Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is a popular choice for travelers who want a balance of rewards and perks without a high annual fee. It offers 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining and select streaming services, and 2x points on all other travel purchases. The card also comes with valuable travel insurance and purchase protection benefits.
Points earned with the Chase Sapphire Preferred Card can be redeemed for travel through the Chase Ultimate Rewards portal or transferred to partner airlines and hotels. The card has an annual fee of $95.
Chase Sapphire Reserve Card
The Chase Sapphire Reserve Card is a premium travel rewards credit card that offers even more valuable rewards and perks than the Chase Sapphire Preferred Card. It offers 5x points on flights and 10x points on hotels and car rentals purchased through Chase Ultimate Rewards, 3x points on dining and travel, and 1x point on all other purchases. The card also comes with a $300 annual travel credit, access to airport lounges through Priority Pass, and comprehensive travel insurance benefits.
Points earned with the Chase Sapphire Reserve Card can be redeemed for travel through the Chase Ultimate Rewards portal or transferred to partner airlines and hotels. The card has an annual fee of $550.
Capital One Venture Rewards Credit Card
The Capital One Venture Rewards Credit Card is a simple and straightforward travel rewards credit card that offers 2x miles on all purchases. Miles can be redeemed for travel through the Capital One Travel portal or transferred to partner airlines and hotels. The card also comes with a TSA PreCheck or Global Entry credit.
The Capital One Venture Rewards Credit Card has an annual fee of $95.
American Express Platinum Card
The American Express Platinum Card is a premium travel rewards credit card that offers a wide range of valuable benefits, including access to airport lounges through the Global Lounge Collection, a $200 airline fee credit, and a $200 hotel credit. It earns 5x points on flights booked directly with airlines or with American Express Travel and 5x points on prepaid hotels booked on amextravel.com.
Points earned with the American Express Platinum Card can be redeemed for travel through the American Express Travel portal or transferred to partner airlines and hotels. The card has an annual fee of $695.
Delta SkyMiles Reserve American Express Card
If you are a frequent Delta flyer, the Delta SkyMiles Reserve American Express Card could be a good fit. It offers complimentary Delta Sky Club access, Medallion Qualification Dollars (MQDs) boost, and priority boarding. You’ll earn 3X Miles on Delta purchases and 1X Miles on all other eligible purchases. This card offers a pathway to elite status and provides valuable perks for loyal Delta customers.
The card has an annual fee of $550.
United Club Infinite Card
For United Airlines enthusiasts, the United Club Infinite Card provides United Club membership, free checked bags, and Premier Access benefits. It earns 4 miles per dollar on United purchases, 2 miles per dollar on dining and hotel stays, and 1 mile per dollar on all other purchases. This card is ideal for those who frequently fly United and value airport lounge access and other United-specific perks.
The card carries an annual fee of $525.
Marriott Bonvoy Brilliant American Express Card
The Marriott Bonvoy Brilliant American Express Card is designed for Marriott loyalists. It offers automatic Marriott Bonvoy Platinum Elite status, free night awards each year, and up to $300 in statement credits annually for eligible purchases at restaurants worldwide. You’ll earn 6X Bonvoy points at participating Marriott Bonvoy hotels, 3X points at U.S. restaurants and on flights booked directly with airlines, and 2X points on all other eligible purchases.
The card has an annual fee of $650.
Hilton Honors American Express Aspire Card
Similar to the Marriott card, the Hilton Honors American Express Aspire Card caters to Hilton enthusiasts. It offers complimentary Hilton Honors Diamond status, a weekend night reward each year, and up to $400 in Hilton resort credits per year. You’ll earn 14X Hilton Honors Bonus Points at Hilton hotels, 7X points on flights booked directly with airlines or amextravel.com and at U.S. restaurants, and 3X points on all other eligible purchases.
This card also comes with an annual fee of $550.
Comparing the Cards
To help you compare these cards side-by-side, here’s a table summarizing their key features:
| Card | Annual Fee | Rewards | Key Perks |
|---|---|---|---|
| Chase Sapphire Preferred | $95 | 5x on travel through Chase Ultimate Rewards, 3x on dining and select streaming, 2x on all other travel | Travel insurance, purchase protection |
| Chase Sapphire Reserve | $550 | 5x on flights and 10x on hotels/car rentals through Chase Ultimate Rewards, 3x on dining and travel | $300 travel credit, Priority Pass, comprehensive travel insurance |
| Capital One Venture Rewards | $95 | 2x on all purchases | TSA PreCheck/Global Entry credit |
| American Express Platinum | $695 | 5x on flights/hotels booked with Amex Travel or directly with airlines | Global Lounge Collection access, $200 airline fee credit, $200 hotel credit |
| Delta SkyMiles Reserve | $550 | 3X Miles on Delta purchases, 1X Miles on all other eligible purchases | Delta Sky Club access, Medallion Qualification Dollars (MQDs) boost |
| United Club Infinite | $525 | 4 miles per dollar on United purchases, 2 miles per dollar on dining and hotel stays | United Club membership, free checked bags, Premier Access benefits |
| Marriott Bonvoy Brilliant | $650 | 6X Bonvoy points at participating Marriott Bonvoy hotels, 3X points at U.S. restaurants and on flights booked directly with airlines | Automatic Marriott Bonvoy Platinum Elite status, free night award each year |
| Hilton Honors Aspire | $550 | 14X Hilton Honors Bonus Points at Hilton hotels, 7X points on flights booked directly with airlines or amextravel.com and at U.S. restaurants | Complimentary Hilton Honors Diamond status, weekend night reward each year |
Maximizing Your Travel Rewards
Once you’ve chosen the right travel rewards credit card, here are some tips for maximizing your rewards:
Meet the Minimum Spending Requirement
To earn the sign-up bonus, make sure to meet the minimum spending requirement within the specified timeframe. Plan your spending in advance and use your card for all of your eligible purchases.
Use the Card for All Eligible Purchases
Put all of your eligible purchases on your travel rewards credit card to earn as many points or miles as possible. Pay your balance in full each month to avoid interest charges.
Take Advantage of Bonus Categories
Use your card for purchases in bonus categories to earn even more rewards. For example, if your card offers 3x points on dining, use it for all of your restaurant meals.
Redeem Rewards Strategically
Redeem your rewards strategically to get the most value. For example, you may be able to get a better value by transferring your points or miles to a partner airline or hotel than by redeeming them through the card’s travel portal.
Consider a Companion Card
Some credit card issuers offer companion cards that allow you to earn rewards on everyday spending without paying an annual fee. These cards can be a great way to supplement your travel rewards earnings.
Stay Informed
Keep up-to-date on the latest travel rewards credit card offers and promotions. Credit card issuers frequently offer limited-time bonuses and discounts that can help you earn even more rewards.
Common Mistakes to Avoid
Choosing and using a travel rewards credit card effectively requires understanding common pitfalls. Here are some mistakes to avoid:
Carrying a Balance
The biggest mistake is carrying a balance and paying interest charges. The interest charges will quickly outweigh the value of your rewards, making the card a poor financial choice. Always pay your balance in full each month.
Overspending
Don’t overspend just to earn rewards. Stick to your budget and only use your credit card for purchases you would have made anyway. It’s easy to fall into the trap of buying things you don’t need just to reach a spending threshold for a bonus.
Ignoring the Annual Fee
Don’t ignore the annual fee. Make sure that the value of the rewards and perks you receive outweighs the cost of the annual fee. If you’re not using the perks or earning enough rewards to justify the fee, consider downgrading to a card with a lower or no annual fee.
Not Understanding Redemption Options
Understand your redemption options before you choose a card. Some cards have limited redemption options, which may not be suitable for your travel needs. For example, if you prefer to stay in independent hotels, a card tied to a specific hotel chain might not be the best choice.
Failing to Track Rewards
Track your rewards and make sure they don’t expire. Some credit card issuers will automatically expire your rewards if you don’t use them within a certain timeframe. Set reminders to redeem your rewards regularly.
Applying for Too Many Cards
Applying for too many credit cards in a short period can negatively impact your credit score. Only apply for cards that you are seriously interested in and that you are likely to be approved for.
Travel Hacking: Taking Rewards to the Next Level
For savvy travelers, travel hacking can elevate your rewards game. It involves using various strategies to maximize your travel rewards and minimize your travel costs. Here are some popular travel hacking techniques:
Manufactured Spending
Manufactured spending involves using your credit card to purchase items that can be easily converted back into cash, such as gift cards. This allows you to meet minimum spending requirements for sign-up bonuses without actually spending money on new purchases. However, manufactured spending can be risky and may violate the terms and conditions of your credit card agreement.
Credit card companies are increasingly cracking down on manufactured spending, so it’s important to be aware of the risks involved.
Credit Card Churning
Credit card churning involves applying for multiple credit cards, earning the sign-up bonuses, and then canceling the cards. This can be a lucrative strategy, but it requires careful planning and organization. It’s important to space out your applications and avoid applying for too many cards in a short period.
Churning can also negatively impact your credit score, so it’s important to weigh the risks and benefits before engaging in this strategy.
Airline and Hotel Status Matching
Airline and hotel status matching allows you to leverage your elite status with one airline or hotel to obtain elite status with another airline or hotel. This can be a valuable way to access perks and benefits across different travel brands.
Many airlines and hotels offer status match challenges, which require you to meet certain requirements within a specified timeframe to maintain your elite status.
Award Chart Sweet Spots
Award charts are used by airlines and hotels to determine the number of points or miles required for a particular award redemption. Some award charts have “sweet spots,” which are routes or hotels that offer exceptional value for your points or miles. Identifying and taking advantage of these sweet spots can significantly reduce your travel costs.
Researching award charts and comparing redemption options can help you find the best deals.
Using Travel Portals
Travel portals offered by credit card issuers and online travel agencies can offer additional rewards and benefits. Some portals offer bonus points or miles for bookings made through the portal, while others offer price guarantees or other perks.
However, it’s important to compare prices and read the terms and conditions carefully before booking through a travel portal. Sometimes booking directly with the airline or hotel can be a better option.
The Future of Travel Rewards Credit Cards
The travel rewards credit card landscape is constantly evolving. Here are some trends to watch for in the future:
Increased Competition
As the travel rewards credit card market becomes more competitive, credit card issuers are offering more generous rewards and perks to attract customers. This means that consumers have more choices than ever before and can find a card that perfectly suits their needs.
Keep an eye out for new card launches and promotions.
Personalized Rewards
Credit card issuers are increasingly using data and analytics to personalize rewards offers based on individual spending habits and preferences. This allows them to offer more relevant and valuable rewards to their customers.
Check your credit card account regularly for personalized offers.
Integration with Mobile Wallets
As mobile wallets become more popular, credit card issuers are integrating their cards with these platforms to make it easier for customers to earn and redeem rewards. This allows customers to use their rewards seamlessly for online and in-store purchases.
Make sure your credit card is added to your favorite mobile wallet.
Focus on Sustainability
With growing concerns about climate change, some credit card issuers are offering rewards programs that incentivize sustainable travel practices. This includes offering bonus points or miles for booking eco-friendly hotels or flights, or donating a portion of their profits to environmental causes.
Consider supporting credit card issuers that prioritize sustainability.
Conclusion
Choosing the best travel rewards credit card is a personal decision that depends on your individual needs and travel habits. By considering the factors outlined in this guide and comparing the top card options, you can find a card that will help you maximize your travel rewards and unlock incredible travel experiences.
Remember to use your card responsibly, pay your balance in full each month, and take advantage of bonus categories and redemption opportunities to get the most value from your travel rewards.
Happy travels!