Credit cards with travel points provide rewards in the form of miles or points that can be redeemed for travel. They may be general purpose cards or co-branded with airlines and hotels, with typically larger sign-up bonuses than cash back cards.
Some offer attractive benefits like airport lounge access or elite status with airlines or hotels; however, these memberships often involve significant annual fees.
General travel cards
There are a range of travel credit cards on the market, each offering benefits that may make travel less stressful or more affordable. Finding the ideal card depends on your travel habits and spending patterns – typically, the ones offering redemption options like airfare or hotels provide greater value per point than those offering statement credits or gift cards.
An option worth considering is the U.S. Bank Altitude Connect Visa Signature card, which offers four points per dollar on airfare, hotels and car rentals and two points on gas stations/EV charging stations/restaurants/streaming services/streaming services; furthermore this card provides a $100 credit towards TSA Precheck/Global Entry application fees every four years.
General travel cards may not be ideal for frequent flyers or hotel guests, but they can still provide useful benefits to travelers who enjoy trying various brands and wish to earn bonus rewards on specific purchases. Many of these cards even waive foreign transaction fees and offer other cost-cutting features.
Airline or hotel cards
Assuming you already understand your spending habits and travel goals, identifying an ideal travel card involves understanding these. Consider factors like how much you spend on airfare and hotel stays; which point types are most valuable; and whether or not elite status benefits appeal.
Airline credit cards can be especially beneficial if you frequently fly with one airline or live near an airline hub, offering benefits like free checked bags, priority boarding and airport lounge access. Furthermore, many airline credit cards provide sign-up bonuses which allow you to accrue frequent flyer miles more rapidly.
Clark cautions consumers about airline and hotel cards with high annual fees, which may tempt them to spend beyond their budget. He suggests looking for cards that offer annual fees lower than your monthly spending average for optimal results.
Flexible points
Citi Premier Card provides good value at its $95 annual fee with three times points on airline and hotel bookings made through Citi Travel Portal as well as offering attractive rewards rates in popular bonus categories like supermarket and gas station purchases. Furthermore, this card gives up to $100 towards TSA PreCheck/Global Entry application fees which many other cards don’t provide at this price point.
But there are risks involved with transferable points: airlines or hotel partners could alter redemption options, leading to points devaluations when used for travel booked through partner portals. It is therefore essential to learn your program and select redemption options with maximum value; some programs even permit redeeming points for non-travel related items like iPhones or chainsaws which often provide lower redemption values.
Redeeming points
Consider redemption options and value when selecting a travel credit card. Most cards offer various ways for earning and redeeming points, including through their own travel portal or point transfers with airlines and hotels partners; furthermore, many travel cards waive foreign transaction fees altogether.
Airline and hotel loyalty programs often offer more appealing transfer options than credit card reward programs, for instance Chase Ultimate Rewards points can be redeemed for gift cards, cash back, or transferred to 10 airlines and three hotels; Citi ThankYou points may be redeemed with JetBlue, Choice Hotels, Wyndham hotels; while Capital One Miles have 19 airline transfer partners.
Ultimately, the ideal travel card should fit with your spending habits and offer exceptional redemption value. In addition, consider cards with additional travel perks like priority boarding and free checked bags; some even provide sign-up bonuses and end-of-year mileage matches!
