Travel credit cards offer excellent returns when used for airfare, hotel stays and car rentals. Furthermore, they may come equipped with valuable benefits such as complimentary checked bags, TSA Precheck eligibility and priority boarding that make life simpler during a vacation.
Most travel credit cards require outstanding or good credit in order to be approved, so it is crucial that you get your finances in order before applying.
General travel cards
The best travel credit cards offer rewards that can be redeemed for travel-related perks and benefits, such as annual credits on airline incidentals or free award nights at hotels, discounts or other benefits. Their value may depend on factors like annual fee and features like rewards tracking.
Some travel cards are co-branded with specific airlines or hotels, offering rewards that meet your travel preferences. Meanwhile, general travel cards give more freedom in redeeming points with any airline or hotel – creating more options when redeeming points.
Make sure that when applying for any travel card, read its terms and conditions carefully prior to applying. Many require excellent credit ratings; you’ll need a history of making payments on time and in full to qualify. In addition, make sure that your annual fees can be afforded before signing the agreement.
Airline cards
Airline cards provide many travel benefits, from free checked bags to priority boarding. This can be particularly valuable for families traveling often or needing access to lounges; in some cases they also provide fee credits.
Airline credit cards typically offer rewards that can be redeemed for flight-related perks, including free or discounted flights and seat upgrades. Furthermore, these cards may help accelerate progress toward becoming an elite status member in an airline’s frequent flier program.
Your decision between an airline card and general travel rewards cards ultimately rests with your travel habits and loyalty to an airline in particular. Airline cards usually provide higher rewards rates than general travel cards, making them particularly valuable if you frequent one or live near its hub; however, these cards tend to incur higher fees than some alternatives.
Hotel cards
If you are an avid traveler and committed to one hotel brand, a co-branded card with that chain could offer increased rewards, free elite status and room upgrades – not to mention annual statement credits, airport lounge access and other perks! Hotel credit cards might not be for everyone; in general travel cards may offer greater value as you can redeem points for flights or other items related to travel.
Premium travel credit cards typically feature higher annual fees but provide enhanced rewards on travel spending as well as extra perks, like automatic elite status privileges and complimentary suite upgrades. When selecting the ideal hotel credit card, make sure you estimate how much value will be obtained from each card’s rewards and perks; in addition to considering its annual fee against expected travel costs before selecting the most appropriate card for yourself. Content created by CNBC Select advertisers
Cash-back cards
Cash-back cards provide a fixed percentage of qualifying purchases back as statement credits, gift cards or direct deposits, which you can redeem against dining, grocery and gas purchases. They often feature rewards categories like dining, grocery and gas purchases; some cards even award up to 6% cash back in those categories! Cash-back cards may benefit foodies, meal preppers and commuters while travel credit cards may offer airport lounge access or reimbursement of TSA Precheck application fees as perks; this option could save time and effort!
Remember, cash back credit cards may encourage spending, making them ideal for consumers who pay off their balances every month. Your earning may also be limited and require meeting a redemption threshold before receiving cash back rewards; some cards also charge foreign transaction fees while others don’t. Rewards earned on cash-back cards may be redeemed through travel portals associated with card issuers; for frequent travelers seeking increased rewards rates it might be wise to choose an airline card as they provide higher rewards rates than competing cash back offers.
