Credit cards that offer travel credits can provide rewards on travel spending while offering useful perks, like trip insurance. When selecting the ideal rewards card for you, make sure that fees and spending requirements are taken into consideration before deciding.
Travel cards often offer rewards in the form of points or miles redeemable against purchases related to travel. Select one that best reflects your spending habits while offering value for its annual fee.
Points
Credit cards that offer points or miles often offer annual travel credits that help offset the costs of flights, hotel stays, and rental cars. Their values may differ depending on which card is being used and their usage.
Travel cards typically offer higher rewards rates on airfare, hotels and rental cars than general credit cards; additionally they often come equipped with valuable travel perks like airport lounge access, baggage delay insurance coverage and TSA PreCheck or Global Entry fee credits.
Some travel cards allow you to transfer points or miles directly into airline and hotel partners for greater redemption value, such as Amex Hilton Honors Aspire Card holders can transfer up to $200 annually into statement credits towards incidental fees on any airline of their choosing (enrollment required). You’ll also earn 6X points on purchases made at hotels participating in Marriott Bonvoy program hotels as well as 3X points at restaurants worldwide!
Miles
Travel credit cards with miles offer rewards you can redeem for discounts on airfare, hotels and other travel-related purchases. Some cards even provide benefits such as complimentary checked bags and priority boarding; while others charge an annual fee.
Airline credit cards (commonly referred to as frequent flier cards) allow you to collect points that can be applied toward one airline’s loyalty program, with additional bonuses like restaurants or groceries stores offered by some cards.
Non-co-branded travel credit cards generally earn a flat rate of points or miles on all spending, making them easier to track. Some also allow users to transfer rewards between hotel and airline loyalty programs for maximum returns; gift cards, complimentary travel experiences or cash back can all be redeemed through redemption options available with these cards.
Cash
Credit cards that provide travel credits offer various advantages, from airline or hotel-branded welcome bonuses and flexible rewards redemption options, to additional perks like checked bags and priority boarding. Furthermore, these cards typically boast higher rewards rates than other cards while charging no foreign transaction fees.
Before applying for a travel credit card, carefully assess where and how your spending occurs and how you plan to redeem rewards. If travel isn’t on your agenda regularly, other reward credit cards offering higher cash back in specific categories like gas stations and restaurants as well as flat percentage cash back may provide better options.
Statement Credits
Credit cards that offer annual travel credits can offer significant value in terms of offsetting fees and increasing return for your travel spending. To optimize this benefit, select a card that fits with your spending patterns.
While many cards offer airline or hotel points, flexible rewards like Chase Ultimate Rewards or Citi ThankYou Points often provide greater travel value than loyalty programs such as Air Miles and Hotel Rewards.
Some cards offer additional travel perks such as airport lounge access or application fee reimbursement for Global Entry/TSA Precheck applications. Although such benefits might make the card more appealing, you should compare its total value against its annual fee to determine whether it’s worthwhile.
Insurance
Credit cards typically provide travel insurance protections that can help cover expenses in case your trip is cancelled or interrupted, reimburse you if luggage is lost or damaged and provide medical evacuation coverage, car rental collision coverage and other benefits.
Chase and American Express issue travel cards with extensive travel insurance protection, such as the Chase Sapphire Reserve card that offers extensive coverage that surpasses other cards’ offerings; its annual fee is $550 but this provides primary rental car coverage which pays first in case of claims against your auto policy.
American Express Platinum Card and Bank of America Premium Rewards Credit Cards provide comprehensive travel insurance, providing coverage for flight delays, trip interruptions and lost luggage. Both cards come without annual fees – providing complete protection.
