The top travel credit cards provide rewards in different forms: some co-brand with specific airline or hotel loyalty programs; while others allow you to accumulate points or miles that accrue to the card issuer’s pool of rewards.
Most cards allow cardholders to redeem points for flights, hotels and rental cars; some even cover bus fares, taxi fares and tolls. Your points could also be used towards statement credits, cash back or gift cards.
Sign-up bonuses
There is a range of welcome offers for credit cards that vary widely in value, from co-branded airline or hotel cards to general travel credit cards that earn points specific to each card issuer in a currency of their own – which can then be redeemed through travel portals, transferred between hotels/airlines partners or used as statement credits.
Sign-up bonuses can make a dramatic impactful on the earnings from your card, but before applying, be mindful of what level of spending will be required to meet its threshold and the earning rate that corresponds with your spending patterns and travel goals. Airline credit cards tend to offer high rewards earning rates on airline purchases with additional perks like free checked baggage, lounge access and elite status benefits while general travel credit cards tend to offer greater earnings potential on hotel, restaurant and car rental purchases.
Points per dollar
You could potentially earn three times as many points or miles for every dollar spent when using certain credit cards to pay for flights and hotels, especially co-branded cards that feature specific airline or hotel brands as co-brand partners of their issuer. Furthermore, co-branded cards often come equipped with extra perks such as complimentary checked bags, lounge access privileges and TSA PreCheck statement credits – making these cards especially advantageous.
Some travel credit cards, like the Bilt Mastercard and Wells Fargo Autograph(sm) Card, offer flexible rewards options with more limited redemption opportunities; other cards may provide increased point values when booking travel through their portals.
Other cards allow you to transfer points between airline and hotel partners, offering the best overall value for your dollars. When comparing travel credit cards, always consider what fees or charges will incur as part of their value analysis.
Transfer partners
Credit cards that provide multiple airline and hotel transfer partners may offer greater value than cards with only one. American Express’ Membership Rewards points can be redeemed for flights via its travel portal, on pre-paid hotel stays, partner airlines and occasional bonus transfers; examples include FlyingBlue and Virgin Atlantic.
Chase Ultimate Rewards points are another form of flexible currency, easily convertible between 11 airline programs and three hotel programs at a 1:1 ratio; redeem them for high-value redemptions like flights to Asia on Delta or Europe with British Airways via Avianca LifeMiles/Virgin Atlantic partnerships.
Citi cards that earn ThankYou Points offer similar flexibility: these points can be transferred to seven airlines and three hotel partners, including Avianca, Hyatt and United.
Redeeming points
Redeeming points and miles for travel offers the greatest value; however, they can also be used towards gift cards, merchandise, statement credit or statement credit. Certain cards even provide added perks such as free checked bags, priority boarding or annual companion certificates! Co-branded cards may be ideal if you prefer one airline or hotel over another; otherwise a general travel card might provide greater flexibility.
Many travel cards reward users with flexible points that can be redeemed through an issuer’s online portal for travel purchases, often worth a fixed amount calculated by multiplying the points or miles you own by the card’s point or mile valuation formula. Some cards even allow holders to transfer these points directly into loyalty programs for airlines and hotels – creating co-branded cards with all their perks!
