Travel credit cards provide rewards programs that let you redeem points or miles for airfare, hotel stays and other travel-related purchases. In addition, these credit cards come with additional benefits such as rental car insurance and free Hertz Gold Plus membership.
Your ideal travel card depends on your spending habits and desired redemption method for rewards. Carefully consider all available options before making your choice.
Co-branded cards
Co-branded cards offer exclusive benefits associated with their partner organizations, such as merchandise discounts and travel perks like airline seat upgrades or airport lounge access. Co-branded cards also help build your credit history as they can be used anywhere credit cards in their payment network are accepted; though their interest rates and annual fees tend to be higher than general cards they can still offer significant value if used responsibly.
Many airlines, hotels and retail stores now offer co-branded credit cards from financial institutions like banks or credit unions in partnership with businesses. Some cards, like Marriott Bonvoy Boundless Card for instance, may only work at specific businesses while others, like MasterCard’s Open Loop option may work everywhere MasterCard is accepted. Select one that best matches your spending habits and brand affinity in order to reap maximum benefits from it.
General travel cards
General travel cards provide greater flexibility in how you redeem rewards compared to co-branded airline or hotel credit cards. You’ll earn points or miles that you can redeem directly with the card issuer or transfer to partner programs such as American Express Membership Rewards, Chase Ultimate Rewards or Citi ThankYou Points. Some cards also provide additional perks like statement credits for covering application fees for NEXUS, Global Entry, TSA PreCheck as well as airline or hotel free night certificates.
Travel credit cards allow users to redeem rewards through the card issuer’s travel portal and redeem for flight tickets, hotel stays and rental car rentals – as well as convert your rewards into cash, gift cards and merchandise – plus many come with generous welcome bonuses that can help kick start their travel adventures. It is also important to consider annual fees and travel plans when determining whether a travel credit card is right for you.
Cash back cards
When selecting the perfect credit card for travel, it is essential that you consider both your spending habits and lifestyle when making the selection process. Furthermore, travel cards typically require good-to-excellent credit scores – if your score falls below this threshold then perhaps a cash back card might be more suitable as an alternative solution.
As opposed to co-branded travel cards that provide bonus points in specific categories, cash back cards offer more consistent rewards rates across purchases; however, unlike airline and hotel loyalty programs they may not allow as much flexibility in earning additional rewards by adding authorized users or referring friends.
Redeem your cash back rewards in various forms – statement credits, gift cards or airline miles are just some of the options available to you from your card issuer’s redemption portal. In some instances, this portal also displays redemption options and points values. Certain cards also provide enhanced points value when booking travel through its online portal while some come equipped with additional benefits such as special event access, zero fraud liability coverage or extended warranty coverage for cardholders.
Annual fees
Credit card prices can differ considerably depending on their benefits and usage frequency. Many cards charge annual fees that can be difficult for travelers to justify; however, frequent purchases could make their rewards worth your while.
Some travel cards offer generous sign-up bonuses that can easily outweigh their annual fee, such as Capital One Savor credit card’s $300 cash bonus when spending $3,000 within three months of opening your account – potentially more than enough to offset its $95 annual fee.
Some travel cards provide additional perks that enhance your travel experience, like TSA Precheck and Global Entry credits or access to Capital One airport lounges. Although these perks can add significant value, they may not be enough to offset a high annual fee. Furthermore, certain cards feature generous redemption rates of points or miles for flights and hotels booked through their portal – or may offer enhanced points values when used through it!
