Credit cards with travel points typically offer attractive initial bonuses and generous point rates for airfare, hotels and car rentals. Furthermore, many allow users to transfer rewards to various airline and hotel loyalty programs.
Cardholders can redeem rewards in the form of statement credits, cash back or gift cards and even book flights and hotels through the card’s online portal.
General-purpose travel cards
Travel credit cards provide rewards on travel purchases that allow cardholders to redeem points for airline or hotel bookings, dining and shopping portals and airport lounge access. Cardmembers can earn points at fixed rates in certain categories – like restaurants and grocery stores – while enhanced rewards of up to 10x may apply on hotel and rental car purchases.
Some cards also provide travel credits such as airline incidental fee credits or free checked bags, though you should read through its fine print carefully as these credits may only apply to specific airlines or be contingent on meeting minimum spend requirements.
Consideration should also be given to a credit card’s interest rate and terms. Cardholders can reduce debt and avoid interest charges by making full payment by the due date each month, with full balance paid off prior to expiration of any 0% APR promotions; however, keep in mind that regular rates will apply once that promotion ends.
Airline or hotel cards
Airline or hotel cards provide brand-specific perks, such as free checked bags, priority boarding and discounts on in-flight purchases. Some cards even allow users to experience on-property benefits such as room upgrades and restaurant credits; these typically come with generous sign-up bonuses that quickly cover any annual fees.
However, for greater flexibility in how your rewards can be redeemed, consider applying for a general travel card that allows you to transfer points between many airline and hotel loyalty programs. Such cards typically offer lower annual fees but may not offer as generous welcome bonuses as co-branded airline or hotel credit cards may do; but long term, paying off balance each month with no interest charges could make these worth their while especially for frequent fliers who can maximize points earning potential.
Transferring points to travel partners
Travel cards often offer multiple redemption options, such as the ability to transfer points directly into airline and hotel loyalty programs. While this provides flexibility and high-value redemption opportunities, keeping up with which points move where can be time-consuming.
Airline and hotel credit cards often offer their own portals where rewards can be redeemed for specific items, like airline tickets or hotels. This may provide greater value than transferring points to partners; however, before making this decision it’s wise to read up on all terms and conditions associated with each program before deciding how to spend them.
Some general travel cards, like the Chase Sapphire Preferred Card and Ink Business Preferred Credit Card, allow you to transfer points between various travel partners. For instance, earning and redeeming Ultimate Rewards points allows for flight tickets with Delta SkyMiles at 1:1 or JetBlue TrueBlue rewards; alternatively you could pool them across your different Chase cards for added value.
Redeeming points
With a solid credit score, you are in position to apply for many of the best travel cards and take full advantage of their benefits. Achieved this way also opens up rewards which help offset any annual fee the card may require.
Travel credit cards allow cardholders to redeem points or miles for travel bookings through their own travel portal, although many also allow point transfers into airline and hotel loyalty programs; such deals can provide better per-point value when redeeming for options like business or first class seats on international flights.
Some travel cards provide extra perks, like free checked bags, airport lounge access and priority boarding – which can add up to more value than the annual fee itself. But to maximize these rewards’ value and maximize rewards’ potential value for yourself, pay off all statement balances by the due date each month to maximize rewards’ worth.
