The best credit cards for travel and cash back offer competitive rewards rates, with some even including benefits such as complimentary checked bags. Airlines typically offer rewards programs to help frequent flyers earn free flights, while hotel cards provide elite status, priority boarding and seat upgrades for their members.
Travel credit cards typically require strong to excellent credit; however, there are options for people with lower scores who wish to build it while earning rewards.
Travel credit cards
Travel credit cards allow cardholders to earn rewards on travel-related purchases and redeem them for discounted flights, hotels and more. While these cards often come with high minimum spending requirements for sign-up bonuses, it’s essential that cardholders understand how they work before applying and that balances can be paid in full each month to avoid interest charges and build their credit score.
General travel credit cards do not belong to any specific airline or hotel chain and can be used for any type of travel expense. Cardholders can often redeem points or miles earned through card issuer’s online travel portal to book flights, hotels and rental cars through this method; points or miles also can be redeemed for merchandise, statement credits and cash back; though redeeming them for travel expenses typically offers the highest value while redeeming rewards as gift cards and merchandise may have lower redemption values.
Co-branded cards
Co-branded cards feature the name and logo of a company on the card and provide cardholders with exclusive benefits such as loyalty rewards, discounted rates or membership status. Co-branded cards work just like regular credit cards but can only be used anywhere that their network accepts them.
Many co-branded cards also offer travel-related bonus points that can be redeemed against airfare, hotel stays, and rental car charges. Selecting the ideal co-branded card depends on your spending habits and brand preferences.
Co-branded cards may tempt us with offers such as complimentary checked bags or flight upgrades, but it is essential to consider your spending habits and budget before applying for one. Interest on any balances carried over each month will erode any rewards, benefits and savings promised from the card – it is also wiser not to have multiple cards as this increases risk of overspending.
General travel cards
If you don’t travel regularly, it may be difficult to justify the fees of a travel credit card. But there are many cards with robust travel perks and protections that could save money when making trips – like competitive rewards rates and no foreign transaction fees; plus some even provide travel insurance policies covering rental car and trip cancellation expenses.
Many travel cards are co-branded with specific airlines and hotels, meaning their rewards can only be redeemed against goods or services provided by these businesses – this limits their value significantly. A general travel credit card, on the other hand, doesn’t restrict how you can redeem its rewards.
General travel cards typically provide points that can be redeemed for flights, hotels and rental cars through their online travel portal. Furthermore, these cards allow users to transfer points between loyalty programs. Each point could potentially be worth up to 1.66 cents when used towards travel through such programs.
Cash back cards
Cash back credit cards may be an ideal solution for infrequent travelers or those looking for a simpler rewards program than points and miles accruing. They typically feature flat-rate rewards programs in categories like dining, entertainment and grocery stores (excluding superstores) that give back up to 25-30% of spending back; some cards may incur annual or foreign transaction fees though.
As well as offering cash back rewards, many cards offer additional features to help you save money when making everyday purchases. For instance, some offer shopping perks such as lowest-advertised price matches, return guarantees and extended warranties; others provide credit score trackers; still more offer sign-up bonuses to meet minimum spending requirements that could save hundreds. Finally, others have loyalty programs with more value per point or mile awarded such as priority boarding, free checked bags or access to airport lounges.
