Credit cards that offer travel rewards often offer incentives for travelers, including airline miles, hotel stays and car rental discounts. But not all travel rewards cards offer equal incentives for travellers.
Some travel rewards cards allow you to transfer points or miles directly into partner airline and hotel loyalty programs for greater redemption value, while others offer fixed-rate rewards that can be redeemed at a set rate for travel expenses.
1. Rewards Rates
Credit card rewards rates determine the value you gain from its perks and benefits, such as airfare, hotel stays and rental cars. Travel-oriented cards may offer increased reward rates on airfare, hotel stays and rentals cars while providing additional perks like trip cancellation insurance or baggage delay coverage.
Airline credit cards allow cardholders to earn miles that they can redeem through the issuer’s booking portal, typically offering greater per-point values than other online booking sites. Frequent flyer credit cards may offer benefits like complimentary checked bags, priority boarding and lounge access.
General travel rewards cards typically feature attractive rates and allow users to transfer points to airline and hotel partners at a 1:1 ratio, making these cards ideal for travel rewards with lower credit requirements. You may find offers suitable for people with poorer scores as well.
2. Bonus Categories
Travel credit cards typically reward cardholders with points or miles when spending on airfare, hotels, car rentals and other forms of travel purchases. Some cards even feature bonus categories for dining out, groceries and drugstore purchases – with rewards redeemable through booking portals, statement credits, cash back options or gift cards from card issuers.
Co-branded airline or hotel cards can be especially helpful for travelers with brand loyalty to a particular airline or hotel chain, who wish to quickly earn rewards. Other cards like Capital One Venture Card offer flexible transferable points that you can use with multiple airline and hotel partners and often feature more generous redemption rates as well as extra perks like airport lounge access and travel accident insurance coverage.
3. Reward Redemption Options
When considering credit card rewards programs and cards, it’s essential to look at available redemption options. For instance, some cards allow users to convert points into statement credit that can be applied toward travel purchases – this may provide great value if there is an appropriate travel destination that matches up to your reward value.
Other travel cards provide flexible travel points that can be redeemed for airfare, hotels or cruises through their travel portal. Many cards also allow users to transfer points between airline loyalty programs – giving you more bang for your rewards dollar!
Certain credit cards offer travel perks like annual flight and hotel credits, automatic status with certain rental car agencies and extra protection policies. Compare each card’s features to determine which would best meet your travel needs.
4. Additional Perks
Many travel credit cards provide benefits beyond earning and redeeming rewards, including co-branded cards associated with airlines and hotels that provide elite status benefits like room upgrades and late checkouts; others may waive airline baggage fees or offer airport lounge access; while cards that generate points under an issuer program allow cardholders to transfer them for extra value.
Finding the appropriate card requires understanding your spending habits and travel goals before comparing rewards rates, bonus categories, redemption options and other card terms. To help make this task easier, create a free WalletHub account to compare top credit cards based on individual needs – don’t forget the annual fee!
5. Insurance Policies
Not only can credit cards with travel rewards offer increased rewards rates and invaluable travel perks, but many also provide comprehensive insurance protection against trip cancellation/interruption costs, car rental collision damage waivers and lost luggage insurance policies.
Some cards offer additional protections, such as priority boarding and booking upgrades. You might find these features in premium co-branded airline or hotel cards; however, you could possibly also discover them elsewhere.
Capital One Venture X provides travel insurance and various perks, such as lounge access and annual travel statement credits, without charging an annual fee. Furthermore, primary rental car coverage could save money over purchasing separate policies; carefully read its terms and conditions to decide whether this card would fit well into your wallet.
