Finding the appropriate travel credit card depends on your spending habits and value received from points or miles you accrue. Some cards offer generous sign-up bonuses if you spend certain amounts within a certain timeframe, yet it’s crucial that you understand all fees involved before choosing one.
The top credit cards with travel points offer plenty of ways to redeem rewards, from airline miles and hotel points to flexible points that can be transferred or applied towards purchases such as airline or hotel flights or room stays. Furthermore, some cards come with elite benefits, such as complimentary checked bags or lounge access.
General travel cards
Many credit card companies provide various methods for redeeming points or miles, from travel portals to booking flights directly through the program. You may be eligible to redeem rewards as statement credits, gift cards or merchandise; however travel purchases usually offer greater redemption values.
General travel cards that aren’t associated with an airline or hotel chain offer greater redemption options and may have a higher approval threshold than co-branded cards, which generally require good to excellent credit. When searching for the ideal card, take into account your spending habits and the desired benefits; compare welcome offers, bonus categories and annual fees before settling on one that meets both criteria. Also keep an eye out for cards without foreign transaction fees since avoiding these can save money over time; look for cards offering statement credits for TSA PreCheck/Global Entry membership which help save time at airports
Airline or hotel cards
There are cards designed specifically for airline brands and general travel cards which allow points or miles transfers between partner programs. When choosing the ideal card for you, consider what your spending patterns look like as well as what value you place on redemption options – most travel credit cards offer portals through which rewards can be redeemed for airfare, hotel stays or car rentals; others may include statement credits and gift cards among them.
Airline or hotel cards require good to excellent credit and can be an ideal way for frequent flyers to take advantage of the many perks these cards provide, such as free checked bags and access to airport lounges. In addition, many airline or hotel cards provide high reward rates on purchases in certain categories like dining and groceries that could provide a significant return on investment if they can earn and redeem rewards effectively.
Alternative travel cards
American Express’ Platinum Card provides premium travel perks, such as airport lounge access and food delivery credit; however, its annual fee is difficult to offset (see rates and fees). Other cards with higher rewards rates for dining and airfare could provide greater value.
Before applying for a credit card, it’s essential to carefully evaluate your spending habits and travel needs. Airline cards with specific airlines may limit your options for earning and redeeming rewards if you regularly fly other airlines; hotel cards designed specifically for traveling with specific families or groups of people might not maximize its benefits either. Likewise, co-branded hotel cards might not yield optimal rewards. Ultimately, if your existing balances are unmanageable it would be wiser to focus on paying them down first before considering applying for new cards to increase chances of approval and gain valuable benefits long term.
Redeeming points
As opposed to cash back credit cards, travel rewards can be more complex. Travel points and miles tend to be distributed via their own proprietary currency which differs from any redemption options provided by card issuers; Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Rewards and Capital One Miles all offer this feature and their respective loyalty programs usually provide redemption values between $1.00 -$2.00; details on redemption may differ slightly between card issues.
Other travel cards feature transferable point systems that enable you to move credit card points between airline and hotel loyalty programs for maximum flexibility in maximizing travel rewards. While this option offers the greatest versatility in maximizing rewards, it requires careful planning as your points could expire after an inactive period.
