Credit cards with travel rewards may offer attractive sign-up bonuses, lucrative earning rates and various travel-related perks that make these cards highly desirable. Redeem rewards points against travel-related expenses while possibly even waiving foreign transaction fees!
These cards usually offer rewards in the form of points or miles that can be redeemed through travel portals provided by card issuers or transferred to airline and hotel loyalty programs at set values.
General travel card points
Travel credit cards provide consumers with the chance to accumulate points and miles when making travel-related purchases, which can then be redeemed for statement credits, airline/hotel reservations booked through an issuer’s travel portal, Amazon purchases, merchandise or gift cards.
How often and which benefits are important when choosing the ideal travel card depends on how frequently and frequently you travel, as well as any features desired from it. Look for cards that provide high earn rates in categories you spend most money in and with low annual fees.
General travel cards provide more versatility than co-branded cards tied to specific airlines and hotels, enabling users to redeem points for various forms of travel and transfer them 1:1 into loyalty programs for airlines and hotels.
Fixed-rate rewards
Credit card rewards are an easy and convenient way to enjoy travel at no cost, but how you use your rewards depends heavily on how and when you redeem them based on your spending habits and redemption options. Your rewards may be redeemable for cash back, statement credits or merchandise purchased directly through storefronts of some cards; some even allow transferring rewards directly into airline frequent flyer programs and hotel loyalty programs!
Some credit cards offer flat rewards rates on all spending, while others feature tiered rewards structures with bonus rewards for certain categories like dining, gas and travel spending. These cards are ideal for people who spend heavily in these categories and want to maximize the value of their credit card rewards.
Many travel reward cards include annual fees that could erode the value of your rewards if not chosen with care. Be sure to select a card with an annual fee that aligns with both your budget and travel-related expenses.
Transferable rewards
Many travel cards allow you to transfer points and miles between card issuers and their partners, such as airlines and hotel loyalty programs, protecting against devaluations by these entities. This feature may also help ensure you’re protected against future devaluations from these programs.
Make the most of your credit card rewards by taking an inventory of your daily spending habits, selecting a card that rewards for frequent purchases, as well as one offering higher earning rates in specific categories such as dining and airfare.
Consider choosing a card without foreign transaction fees – up to 3% per purchase can save a substantial sum when traveling overseas. Furthermore, most travel cards provide generous 0% balance transfer periods that allow you to manage debt before starting repayments.
Perks for frequent travelers
If you are an avid traveler, a credit card with travel rewards could offer substantial welcome bonuses and benefits, such as airline seat upgrades. When selecting one, be sure to compare bonus categories, redeeming options, included benefits and any potential foreign transaction fees before making your selection. Considering cards without foreign transaction fees as well as travel-related purchase protection may also prove advantageous.
Some travel cards offer rewards in the form of miles instead of points, which can be redeemed for flights, hotels and other travel purchases as well as lounge access, airport security pre-check and priority boarding depending on the card you use. Annual fees may apply; some waive them in their first year; sign-up bonuses could amount to hundreds of dollars; however it’s best to apply for the card prior to making big purchases in order to take advantage of such bonuses.
Authorized users
Credit card companies sometimes allow primary cardholders to add authorized users, giving them access to benefits like lounge access on American Airlines flights or other carriers. But this arrangement can put additional financial strain on primary cardholders and strain personal relationships without proper oversight from primary cardholders and monitoring. Overspending by an authorized user could raise his card’s credit utilization rate, potentially harming both of their scores in turn.
Addition of authorized users may prevent you from being eligible for signup bonuses, as the primary cardholder may need to meet minimum spending requirements to unlock one. An authorized user may be removed at any time – either online, through their card issuer’s mobile app, or calling their customer service line.
