When looking for the ideal travel credit card, look for one with an appealing rewards rate and valuable perks such as airport lounge access, statement credits or built-in travel protections.
An important feature of a travel credit card is transfer partners and foreign transaction fees. To maximize rewards value, co-branded cards could also be worth consideration.
Rewards
The best travel credit cards offer rewards that you can use to book flights, hotels or rental cars. Some programs allow you to convert points to loyalty program miles for even greater value; other cards feature additional perks such as airport lounge access or TSA PreCheck/Global Entry fee reimbursement.
General travel cards that are unaffiliated with one airline or hotel chain typically offer large sign-up bonuses of tens of thousands of miles and offer flexible rewards redemption options, such as statement credits or account deposits. Discover it Miles card allows users to redeem miles as statement credits and checkout discounts at Amazon/PayPal while the American Express Gold Card gives elevated rewards on popular spending categories as well as welcome bonuses and an annual travel credit; some premium travel cards also waive foreign transaction fees altogether.
Perks
Travel credit cards provide many amenities designed to make travel more comfortable and convenient, such as airport lounge access, primary rental car coverage and trip interruption/cancellation insurance policies. Many cards also do not charge foreign transaction fees – something not available from traditional credit cards.
Some travel cards may carry high annual fees, but their rewards programs and perks help offset them. With some cards having complex redemption options or others requiring you to spend a certain amount before earning any rewards; if you plan on carrying an outstanding balance each month then this might not be your ideal solution.
Capital One Venture X Rewards Credit Card brings all the rewards and perks of premium travel cards into one no-fee card that costs hundreds less than its competitors. It features an exceptional points redemption rate as well as access to premium benefits such as an annual travel credit and lounge access.
Annual fee
Travel credit cards provide rewards on airline and hotel purchases that you can redeem for free flights, hotels and rental cars. They also come equipped with amenities like airport lounge access and travel insurance – though some travel cards charge an annual fee that could offset some of their rewards value.
Travel-specific cards like the United Explorer Card and Hilton Honors American Express Card typically offer higher reward rates than general travel cards, though you must redeem these rewards through that brand only.
General travel cards like Capital One Venture Rewards Credit Card and Chase Sapphire Preferred(r) Card offer flexible rewards that you can apply towards any travel purchase. They typically come with lower annual fees compared to co-branded travel cards, and many even offer bonus points when spending in specific categories like dining, groceries or drugstores – you can even transfer these points over to numerous airline and hotel partners!
International coverage
If you travel internationally often, using a credit card that does not charge foreign transaction fees may be beneficial. These fees typically fall somewhere around 3% of purchases and can negate many of the rewards earned on purchases made with that card – for instance the Wells Fargo Autograph Card which waives these fees offers generous rewards on spending categories like dining, gas and transit expenses.
Airline cards are ideal for travelers who frequently fly on one airline, who want to use their rewards towards free flights and redeem their perks such as checked bags or priority boarding. Hotel cards offer points which can be redeemed for stays at specific hotels chains, while some even come equipped with elite status, free night certificates, or travel protection features.
General-purpose travel credit cards like the Chase Sapphire Preferred Card offer you flexibility in redeeming rewards for any kind of trip, and may provide valuable travel protections. They typically also come with lower annual fees than premium travel cards.
