Travel credit cards allow cardholders to accrue miles or points that can be redeemed for free flights, hotel stays and vacation packages. Furthermore, these credit cards often come equipped with extra perks like free checked bags, airport lounge access and global entry/TSA PreCheck membership.
Selecting the optimal credit card can help maximize the return from your rewards and savings efforts. When making this choice, take into account factors like annual fee, bonus earning categories and redemption flexibility.
Rewards
Travel cards that offer generous reward rates across categories related to travel such as airlines, hotels and car rentals can help maximize the value of your next vacation. It is important to consider both your spending habits and financial goals before selecting a rewards credit card specifically for travel rewards.
Airline miles or hotel points are among the most frequently offered travel rewards; however, other forms exist too – for instance some cards provide cash back that can be redeemed for different items including gift cards and statement credits.
Ideally, airline credit cards may be the right fit for frequent flyers as you can earn frequent flier miles when making purchases with them and enjoy benefits such as free boarding passes, priority boarding, and seat upgrades. For occasional travelers taking occasional trips, general-purpose rewards cards offering flexible point redemption may make more sense; make sure yours offers purchase protection and an ample welcome bonus so it fits you best!
Airline perks
Airline credit cards are tailored specifically for frequent travelers, providing benefits such as complimentary checked bags and priority boarding. In many cases, these co-branded cards allow users to accumulate points or miles that can only be redeemed against travel on that carrier.
An attractive travel card offering an attractive sign-up bonus and rewarding rate is ideal for travelers who wish to accumulate points quickly; however, before making your decision it’s essential that you consider its annual fee before signing on the dotted line.
Other considerations when choosing the appropriate card include its benefits and redemption options. For instance, Chase Sapphire Preferred provides a flexible redemption system including statement credits, gift cards and merchandise as well as airfare, hotel stays, car rentals and cruises. American Express’ Business Platinum Card has higher annual fees but provides several valuable perks such as complimentary checked baggage access and airport lounge membership.
Low-interest
An excellent travel card may offer great value to your spending, particularly if it features an attractive welcome bonus and additional perks such as statement credits, free hotel stays or airline upgrades. But be mindful of its annual fee, foreign transaction fees or other potential costs which could detract from rewards’ overall value.
Money expert Clark Howard suggests travelers carefully weigh their options when applying for a credit card, noting that travel cards may only be aspirational to most. Cash back credit cards offer greater opportunities, including earning rewards on dining and entertainment spending without travel-related bonuses and saving on annual fees by eliminating foreign transaction fees that charge up to 3 percent when purchases abroad.
Other perks
Some travel cards provide extra perks that can make travel simpler and more affordable, such as trip interruption and cancellation coverage, cell phone protection benefit, airport lounge access benefits and auto rental collision damage waiver. Be sure to compare fees associated with each credit card you are considering when considering which option would best meet your travel needs; sign-up bonuses or incentives may be offered – make sure that you can meet them before applying!
