Credit cards that offer travel rewards can offer rewarding return rates on eligible purchases and additional perks such as generous sign-up bonuses; however, these cards can be complex to use and some even incur annual fees.
How you select the ideal card will depend on your travel goals and spending habits, here is how to navigate these options:.
1. Earn Points or Miles
Travel cards typically offer generous point or mile rewards per dollar spent, which you can use to offset their annual fee or bring the cost of your next adventure down significantly. Some cards also feature spending multipliers in popular, practical categories like dining, grocery and gas purchases; an ideal travel card may even avoid foreign transaction fees which could save both points and dollars!
Most travel cards offer various redemption options, from statement credit and gift cards to cash back and airport lounge access or priority boarding privileges. If you are loyal to a specific airline or hotel brand, look for co-branded cards which provide extra value in their loyalty programs.
General travel cards often offer attractive welcome bonuses that offer new cardmembers thousands of bonus miles after meeting spending requirements within a short timeframe. This can be one of the fastest ways to boost your rewards balance quickly.
2. Redeem Points or Miles
Americans rely more than ever before on travel rewards cards, yet their value varies depending on how points or miles are redeemed. Therefore, it’s crucial that consumers understand how credit card points or miles work before selecting one as their rewards credit card of choice.
Redeeming credit card points or miles typically involves booking flights through their travel portal; however, card issuers may offer other redemption options like gift cards and merchandise as well.
With airline co-branded cards, rewards you earn are tied directly to their loyalty program. General travel reward credit cards offer greater redemption flexibility as rewards can typically be transferred across multiple airlines and hotels partners. Furthermore, some credit card issuers offer bonus redemption opportunities in categories like dining, streaming services or grocery shopping to increase the value of your miles further.
3. Transfer Points or Miles
To maximize the value of your credit card travel rewards, it is crucial that you know your redemption options and find a program that matches up with how you intend to use your card. Chase Ultimate Rewards program offers several attractive traveler-oriented benefits as well as many airline and hotel transfer partners for beginners looking for their first travel rewards program.
Consider cards with high earning rates and generous sign-up bonuses, but watch out to avoid incurring more in interest charges than you earn in rewards.
If you want a travel credit card that offers excellent points or miles per dollar spent, be wary of those that impose high annual fees; these costs could offset any potential rewards if your balance carries over from month to month; some cards even waive them entirely in their first year!
4. Use Points or Miles
Many travel credit cards allow you to use your points or miles directly for travel; however, you may get even greater value by transferring them to loyalty programs such as United MileagePlus or World of Hyatt where they may provide benefits such as travel rewards or statement credits.
Airline co-branded cards typically provide higher sign-up bonuses than general travel cards, with additional miles awarded when spending certain amounts in the first several months after opening your card. It is essential to consider redemption values and fees of airline or hotel programs when considering these cards, however.
Travel credit cards offer great potential to maximize the value of your points or miles, but beware that interest charges could erode this advantage. Watch our TPG video on how airline miles work and discover more on earning and redeeming them!
