Credit card companies entice new cardholders with attractive travel rewards such as bonus miles. But these points or miles may not provide much of a return upon redemption.
Finding the ideal travel credit card begins by understanding your spending habits and deal breakers, then comparing rewards minus annual fees across your remaining options.
Rewards
Credit card travel offers enable you to accumulate points or miles that can be redeemed for free flights, hotels and more – often offering higher rewards than cash back cards. Furthermore, some cards come with membership benefits like airline lounge access and discounts on ancillary fees as well as free checked bags; plus sign-up bonuses could add hundreds of dollars in travel benefits!
General travel rewards cards offer flexible point redemption options, including through their issuing bank’s travel portal or transfers to airline and hotel loyalty programs. This gives these cards greater value per redemption compared to co-branded cards which typically only provide limited travel redemption options.
Discover It Miles cardholders can enjoy generous returns of 2x on all spending and 5x when using Hotels By Wyndham bookings through Capital One travel portal, while their welcome offer is worth 30,000 bonus miles as well as valuable travel protections. Additionally, their miles can even be transferred directly into airline or hotel loyalty program partners for easier redemption options.
Convenience
Travel credit cards provide many advantages that can save money when booking airfare and hotel stays, including competitive offers for bookings, low forex markup fees on tickets and hotels, additional security through purchase protection insurance policies and purchase guarantees, among other advantages.
Card benefits vary, from complimentary lounge access and airport parking credits, to elite status benefits from airlines or hotels programs, with some premium cards offering up to $300 annual travel statement credits and fee credits for Global Entry or TSA PreCheck applications.
Are You A Frequent Traveler? An elite-like card may be worth its annual fee for frequent travelers. American Express’ Platinum Card, for instance, boasts a high welcome bonus as well as automatic hotel elite status and free annual nights; though its high annual fee may be difficult for some. In addition, this card also provides 1.5 cent value when booking travel portal and provides flight price prediction so travelers can plan ahead.
Security
Long airport security lines can erode enthusiasm for traveling. To make things easier, some credit cards offer complimentary membership of TSA PreCheck or Global Entry programs, enabling travelers to bypass long lines and get to their gates more quickly. When choosing the appropriate card for your travel goals, compare benefits and fees holistically as you compare options; keep in mind that some cards provide insurance or protections on purchases made using them, such as trip cancellation insurance and cell phone theft protection1.1
2Source: CNBC.com, February 2021.
Fees
Travel credit cards typically charge an annual fee, which can be an unexpected expense if rewards don’t cover it. But many cards also provide membership benefits such as airport lounge access or global entry/exit fee coverage or discounts on airline and hotel bookings that could make their annual cost worth it.
Travel cards may offer other perks that make using them convenient, such as dedicated travel portals where points or miles can be redeemed for airfare, hotel stays, rental car fees and other travel-related expenses. Some cards also waive foreign transaction fees (typically around 3%) when purchasing outside the U.S. Moreover, some allow users to add authorized users at no additional charge.
