Credit cards offering travel points typically offer high sign-up bonuses and valuable perks that could save money, including extra travel protections and statement credits. Unfortunately, however, they could have high annual fees.
Airline credit cards allow users to collect miles that can be redeemed for flights on either the airline itself or one of its alliance partners, hotels and rental cars.
Flexible travel rewards
If you want to maximize the value of your credit card points and miles, choose a flexible travel rewards card. Such cards usually offer multiple redemption options and access to transfer partners, which can increase their worth significantly. It is essential that before choosing such a travel rewards card that you first understand the terms of its program as well as your spending patterns before selecting one.
Co-branded cards with airline and hotel brands are ideal for frequent travelers who prefer a particular airline or hotel chain, offering added perks such as priority boarding, upgrades and free checked bags.
General travel cards provide rewarding rates on most forms of spending related to travel, including restaurants, grocery stores and drugstores. With these cards you can quickly rack up rewards – some come equipped with generous signup bonuses and even offer zero APR on purchases and balance transfers; however these cards often incur an annual fee.
Added perks
Travel cards offer more than just high rewards rates and standard credit card benefits – they also often include extra perks that go beyond traditional benefits such as airline credits or lounge access, such as free checked bags, airline credits or lounge access. Furthermore, some may offer statement credits towards Global Entry/TSA PreCheck/NEXUS application fees, primary rental car insurance coverage or trip interruption and cancellation coverage as additional extras.
These benefits can often make up for the annual fees on co-branded airline or hotel cards, with one-time signup bonuses worth $500 or more often making the annual fee worth paying several times over. Additional perks could include priority boarding and inflight discounts or freebies such as food or entertainment.
These additional perks vary by card, but premium travel cards with an annual fee of $450 or higher tend to offer the most generous benefits, often offering bonus reward categories such as dining, gas stations and drugstores.
No foreign transaction fees
If you travel frequently abroad, it is advisable to obtain a credit card without foreign transaction fees as these can add an additional 3% cost when purchasing items abroad. Furthermore, these cards typically offer other rewards and benefits that make traveling both easier and more beneficial when returning home.
Most credit card issuers charge a currency conversion fee, but it may be better to let your card network handle this task than asking merchants themselves to convert your purchases back to U.S. dollars at an inferior exchange rate. Some cards even waive this foreign transaction fee and provide better exchange rates themselves.
Credit cards that offer rewards or miles for travel expenses, like hotel stays, flights and car rentals can provide travelers with additional points or miles that can be redeemed against hotel stays, flights and car rentals. Furthermore, many credit cards provide purchase protection or insurance policies that make them an excellent value proposition – however it is essential that card users compare these offerings against one another to see whether their benefits outweigh annual fees.
High annual fees
The top travel credit cards offer high rewards rates on flights and hotel stays as well as various added perks, such as statement credits that allow you to effectively offset the costs of airfare purchases or airport lounge access as well as TSA PreCheck fee credits. Unfortunately, however, some travel cards also carry steep annual fees that may put travelers off using them altogether.
American Express’ Business Platinum Card(r) features one of the highest annual fees among credit cards but provides an attractive sign-up bonus and various perks that more than offset its cost. However, its annual fee may not be suitable for infrequent travelers due to having to spend large sums on eligible spending to receive full value from it; additionally if your balance remains outstanding for too long then interest charges and other costs could overtake any benefits earned or perks experienced.
