Travel credit cards allow cardholders to earn points or miles with everyday purchases like dining, gas and groceries that can then be redeemed for free or discounted flights and hotel stays. Furthermore, these cards often provide other valuable perks as well.
Financial expert Clark Howard holds several travel cards himself but believes they may not be suitable for most people due to the annual fees they often require.
1. Chase Sapphire Preferred
Chase Sapphire Preferred is a premium travel card well worth its annual fee for frequent travelers who can take advantage of its expansive rewards categories, redemption options, travel protections and other perks. Travel bookings through Ultimate Rewards portal earn 5 points per $1 spent; dining, select streaming services and online grocery purchases (excluding wholesale clubs and Walmart) earn 3 points; general purchases earn 2 points while everyday spending generates one point each.
Redeem rewards up to 1.25 cents in value per point by transferring them to 14 loyalty program partners like Hyatt, United and Marriott – including airlines like Hyatt, United and Marriott! Plus this card comes equipped with several features designed to save you money when traveling overseas, such as trip cancellation and interruption insurance, primary auto rental collision damage waiver and baggage delay reimbursement.
2. American Express Platinum
American Express Platinum is an opulent premium travel card offering luxurious benefits to those willing to pay its hefty $695 annual fee. Though its rewards may not match up to those provided by Chase Sapphire Reserve and Capital One Venture X cards, American Express Platinum provides ample annual credits that may more than compensate for any fees due.
Example uses of this card’s credits include covering application fees for Global Entry or TSA PreCheck; using up to $300 of statement credits per year towards Equinox fitness club membership fees paid with this card; taking advantage of up to 80,000 Membership Rewards points as welcome bonus and redeeming them with American Express Travel or transfer partners for greater value; as well as taking advantage of any welcome bonuses such as 80,000 Membership Rewards points when redeeming with American Express Travel or transfer partners.
3. Capital One Quicksilver
Capital One QuicksilverOne Cash Rewards Credit Card offers a competitive flat 1.5% rate on all purchases and its rewards can quickly add up. Plus, no foreign transaction fees apply so this card could save money over other cards that charge fees on foreign transactions.
Capital One Quicksilver cardholders can earn an unlimited 5% cash back when booking travel through Capital One Travel (terms apply). Their experts will advise on when is best to book airfare, hotels and rental cars to maximize earnings potential.
This card is tailored for individuals with fair/limited credit, defined by FICO scores between 580-669. Additionally, this card offers purchase and travel protection services such as extended warranty coverage, complimentary concierge services and fraud liability protection – earnings don’t expire unlike some cards which feature rotating bonus categories.
4. Citi Double Cash
As with other cards in its category, the Citi Double Cash Rewards credit card provides a generous flat rate of cash back across all purchases without spending caps or intro balance transfer period. Furthermore, its intro balance transfer period helps make debt repayment simpler.
But this card lacks many travel perks and charges a 3% foreign transaction fee; therefore if you want travel credits or protection such as trip delay coverage or rental car insurance you should choose another card.
Citi recently revised how it rewards customers, shifting towards rewarding customers with Citi ThankYou points instead of just cash back. You can redeem ThankYou points for either cash back at a rate of one cent per point, or travel through Citi partners such as Choice Privileges Rewards, JetBlue Traveller Plus and Wyndham Travel Rewards.
5. Barclaycard Arrival Plus
Barclaycard Arrival Plus is a favorite travel rewards credit card because of its generous rewards rates on all types of purchases, no airline loyalty program required to earn and redeem miles, plus merchandise or gift cards purchased using this card.
Arrival Plus miles may also be redeemed for cash statement credits; however, doing so values each mile at half its $0.01 value when used for travel. Travel covers airlines, hotels, motels, timeshares, campgrounds, car rental agencies, cruise lines, purchase/travel agency bookings/discount travel sites/trains, buses taxis & limousines etc.
