Travel credit cards provide a range of rewards, from small cash-back amounts to generous points and miles accumulation. In addition, they come equipped with numerous benefits and protections, such as no foreign transaction fees, lounge access privileges and expedited security credits.
Selecting the ideal card depends on your goals and spending habits, with factors like earnings rate, perks and rewards value becoming key considerations when selecting an ideal credit card.
Rewards
Travel credit cards typically offer high rewards rates on flights, hotel stays and rental car purchases. Some cards like Bank of America Premium Rewards even provide bonus points for restaurant meals and supermarket shopping! Others like Chase Sapphire Reserve provide more generous definitions of what constitutes travel spending so you can earn bonus points beyond flights, hotels and rentals alone.
Airline and hotel credit cards often earn points that can only be redeemed with their respective airline/hotel group; however, general travel cards from major issuers like Chase or Capital One offer flexible redemption options; statement credits on past travel purchases or booking through the card issuer’s online booking portal may all be options for redemption of rewards earned with them.
Travel credit cards with annual fees often offer benefits such as airport lounge access and travel insurance. NerdWallet’s top picks in this category feature generous signup bonuses as well as bonus categories including dining and entertainment.
Perks
A travel credit card should offer attractive perks that make travel more enjoyable, such as complimentary or reimbursed checked bags, airport lounge access, global entry or TSA PreCheck membership and primary rental car coverage.
Many travel cards provide rewards in specific spending categories, like dining and gas purchases, while some also provide higher rewards rates on airline or hotel purchases.
For free flights, the number of points or miles required varies by card and airline, though each point or mile typically costs one cent. Some travel cards also allow users to transfer accumulated points into partner loyalty programs.
Premium travel cards typically charge an annual fee, yet often offer benefits that more than offset this expense. American Express’s Platinum Card(r) comes equipped with extensive airport lounge access and travel credits that help make up its $695 annual fee quickly. In addition, this card provides travel insurance that includes trip delay/cancellation coverage.
Requirements
While your credit card selection depends heavily on your spending and travel goals, there are certain general criteria you should keep in mind when making your choice. A good place to begin would be analyzing how much money you spend monthly and comparing rewards offered by various cards; some travel credit cards even come equipped with generous sign-up bonuses that allow you to earn thousands of bonus points if certain spending requirements are met.
Airline and hotel loyalty programs make redeeming rewards simple, while some credit card issuers provide online shopping portals to earn points faster on purchases. Travel cards may also come equipped with essential travel protections like trip cancellation coverage or car rental insurance, but before selecting one be sure it doesn’t charge foreign transaction fees that could drastically diminish the value of rewards earned – good travel cards should never do this! Furthermore, some cards provide airport lounge access which can make traveling even more comfortable and convenient.
Fees
When searching for a credit card designed specifically for travel, make sure to consider the annual fee, rewards rate and perks. NerdWallet evaluated 127 popular travel cards in order to identify those that offer no foreign transaction fees as well as other valuable features.
Many travel cards offer generous sign-up bonuses, but if you only travel occasionally it might be better to opt for a cash back credit card without annual fees instead. Some of the top cards in this category even provide credits to cover the registration costs for Global Entry or TSA PreCheck registration applications alone – saving hundreds in just applications fees alone!
Capital One Venture X Rewards Card, for instance, offers frequent travelers tremendous value, offering high rewards rates on airfare and hotel stays and earning points worth up to 3% when booked through its travel portal. Plus, it comes equipped with travel coverage including flight delay insurance and lost luggage reimbursement – perfect for frequent flyers!
