Travel credit cards provide cardholders with points or miles that can be redeemed for travel rewards, while some cards even provide amenities like airport lounge access, CLEAR membership credits and concierge services.
Consider the value of these perks when selecting a card, and ensure its annual fee justifies its rewards and benefits.
General travel rewards programs
Travel credit cards often offer lucrative sign-up bonuses worth several thousands of dollars, enabling cardholders to redeem rewards towards award flights or hotel stays. But it is essential that balances are paid in full every month or else interest and late fees could offset your rewards points or miles.
The best travel credit card programs typically feature exchange programs that let you transfer rewards between airlines and hotels, providing better redemption values than cash back options. Some cards even provide general travel benefits such as trip delay insurance and access to larger airport lounge networks.
Co-branded travel cards are an excellent choice if you have strong allegiances to a particular airline or hotel brand, offering fast-track status in their loyalty program and other premium benefits. But don’t forget about the annual fee for these cards when making your decision.
Co-branded airline credit cards
If your credit score is strong enough, travel cards with large sign-up bonuses should be readily available to you. But be mindful that most such cards charge an annual fee that will diminish any rewards earned unless your balance is paid in full each month.
Co-branded airline credit cards are issued in partnership with specific airline chains and offer benefits such as complimentary checked bags and club access. These cards are perfect if you fly often with one airline and want to take advantage of its loyalty benefits.
General travel cards issued by banks typically offer more flexible points that can be redeemed for various travel arrangements, and may allow you to transfer rewards directly into airline loyalty programs. Furthermore, they often come with lower annual fees compared to co-branded airline cards.
Transferable points credit cards
The best travel credit cards typically feature sign-up bonuses worth hundreds of dollars in points or miles, however these bonuses usually come with an extensive spending requirement. Furthermore, cardholder benefits like airport lounge access and a $300 annual travel credit may also be available – plus credit towards Global Entry/TSA PreCheck are another advantage for cardholders.
Card issuers use their own points system as rewards currency that can be redeemed in various ways – booking travel through their travel portal, transferring points to airline and hotel partners, redeeming gift cards or even donating. These cards offer flexibility over co-branded loyalty programs while eliminating annual fees.
Cards that allow you to earn cash back based on your spending are an excellent way for travelers who are new to points and miles to gain value from their spending habits. One such card, the Bank of America Customized Cash Rewards card offers generous 3% cash back for purchases in choice categories like grocery stores or wholesale clubs up to an annual cap (capped at $2,500 in combined total spend across these purchases each quarter) while still providing 1% for other spending categories like non-grocery stores/wholesalers clubs etc.
Travel benefits
Travel credit cards provide many perks that can add considerable value to your next journey, such as airline and hotel loyalty programs, airport lounge access, accelerated earning rates and accelerated spending requirements. All this can help offset annual fees and spending requirements of some travel credit cards.
Some card issuers offer travel portals through which customers can earn bonus points by booking flights, hotels and car rentals – though this method of earning can be inconsistent and it is wise to compare portals in order to find one with the highest redemption value.
American Express’ Business Platinum Card provides frequent travelers with a generous sign up bonus and valuable benefits, including generous yearly travel credits, access to Amex Centurion Lounges and other premium airport lounges, complimentary elite status membership and Global Entry/TSA PreCheck fee credits. However, its hefty annual fee limits its practicality for casual travellers.
