Travel credit cards typically reward their holders in the form of points redeemable for free flights, hotel stays or rental cars. Some even provide bonus point rates when spending in certain categories like dining out, groceries, drugstore purchases and streaming services.
Many cards allow cardmembers to transfer their earned points into airline and hotel loyalty programs, increasing the value of rewards earned.
General travel cards
Credit cards that offer general travel rewards tend to offer much higher reward rates than co-branded cards, sometimes offering up to $100 towards Global Entry or TSA PreCheck every four years.
Before selecting a general travel card, it’s essential that you consider how you will use your points for redemption. Take an inventory of what spending categories you are most likely to use and check whether multiple redemption options such as cash or travel exist on this card.
Your next decision should focus on whether you prefer transferable points or loyalty program benefits like elite status and lounge access. Co-branded travel cards might make more sense; but be mindful of all fees associated with each card (Capital One Venture’s annual fee is $95 and comes with an impressive welcome bonus of 60,000 miles in year one) so consider all factors before selecting one that’s suitable for frequent travelers who don’t wish to manage multiple credit cards simultaneously.
Airline or hotel cards
Airline cards are ideal for frequent flyers who wish to take advantage of airline-specific benefits like free checked bags or priority boarding. Furthermore, many airline cards provide access to accelerated or automatic elite status with their frequent flyer programs as well as welcome bonuses that may come with each card purchase.
Airlines or hotel cards differ from general travel cards in that they can offer bonus points for specific categories, like dining out, drugstore purchases and streaming services. Furthermore, these cards often offer a flat point rate on non-bonus categories such as airfare, hotels or car rentals booked through their travel portal – typically 1 or 1.5 cents per dollar purchased.
Reward points or miles can differ significantly between cards, making it essential to select one that best meets your needs. Think carefully about how you plan to redeem them – for a statement credit or travel partners – then compare each card’s perks against one another to determine which provides the greatest value for you.
Premium cards
Some premium cards feature appealing benefits, such as airport lounge access, TSA PreCheck/Global Entry application fee credits and travel insurance coverage. Although these benefits might seem attractive at first, make sure that their annual fees and interest rates make the card worthwhile for your circumstances before applying.
The ideal premium card will suit your spending habits and offer the value you require. For instance, one with flexible point redemption options and multiple high-paying bonus categories provides greater overall value than those offering limited or specific category rewards; similarly a card offering travel credits applicable across a wider array of purchases is more valuable than those offering specific airline or hotel-specific travel credits.
An investment card will only provide value if used wisely; that means keeping track of maximized accelerated earn rates, taking advantage of travel benefits and lifestyle perks, as well as statement credits available.
Statement credits
Credit card rewards programs often offer statement credits as an option to redeem points and miles, helping offset the cost of purchases or decrease monthly bills.
Some rewards cards provide credits against qualifying charges such as baggage fees or plane tickets, while others might provide annual statement credits for applications for Global Entry or TSA PreCheck.
Other card perks, such as statement credits or discounts for dining or retail purchases can also be offered as statement credits and can even be easily redeemed – these rewards may even be advertised prominently on the card’s website and made easy to redeem.
Credit card companies treat statement credits differently, so it’s essential that you understand how they operate before signing up for one. Some card programs, like Chase Ultimate Rewards, value points at 1 cent each regardless of how they’re redeemed; other offer only certain amounts per credit card statement credit.
