Travel and entertainment credit cards provide rewards for spending on dining, entertainment and travel expenses. Some cards even offer insurance protection and additional perks that make these purchases even more appealing.
This card could be an ideal solution for anyone seeking to rack up miles efficiently and manage only one card at a time, as its 2 miles earned per dollar of general purchases exceeds most competing products.
Benefits
If you are an avid traveler, a credit card with travel perks and rewards rates might make sense for you. Such cards typically provide increased bonuses on airline, hotel and other forms of spending such as dining, entertainment and car rental spending; but with their high annual fees it’s essential that before applying these cards are thoroughly evaluated to meet both your spending habits and rewards goals.
Some cards offer cash back while others give points that can be redeemed for travel purchases through their portal. Depending on which card is chosen, additional benefits such as airline fee credits, hotel credits and statement credits for purchases at certain airlines may also be included as extra perks – even airport lounge access may be granted with some cards!
Corporate cards can also be an ideal option for business travelers. Finance teams can use them to set spend limits and track employee spending more easily, and these cards may even come endorsed by the firm’s finance team and include benefits such as direct card feeds, spending caps and travel expense tracking capabilities.
Fees
Some credit cards in this category charge costly annual fees, making it essential to carefully evaluate whether their rewards justify those costs. A card that offers generous welcome bonuses and additional travel perks might more than make up for its higher annual fee.
American Express’ Platinum Card provides a generous welcome bonus: 100,000 points upon opening an account and free hotel nights after spending certain amounts within three months, which could easily cover its $695 annual fee, which ranks among the highest among consumer credit cards.
Other credit cards in this category feature lower annual fees while still providing valuable perks such as complimentary hotel stays, priority boarding and insurance coverage on rental cars. Each card may offer different perks; some cards may provide extras like statement credits for flights or hotels or upgrades when renting cars; some credit cards in this category even feature additional benefits like purchase protection and extended warranties.
Requirements
Travel and entertainment cards typically require outstanding credit, typically defined by a FICO(r) score of 670 or above. Although specific requirements may differ between cards, this high threshold indicates that your debt will be paid on time and in full by its issuer.
Other requirements might include your income and debt-to-income ratio, which could determine how large of a credit limit is given on a premium travel card. Furthermore, an issuer might take into account your history with other credit cards issued by them as well.
Similar to “travel,” the definition of travel varies by card issuer. Some include purchases made at airlines, car rental agencies, hotels, cruise lines and passenger railways as travel purchases, while other may exclude these categories or classify them differently. To select the ideal card for your spending habits compare available cards – many card issuers offer preapproval tools so you can see whether specific cards will likely approve before applying if possible.
Rewards
Travel and entertainment credit cards offer some incredible rewards that are sure to add up, particularly if redeemed for airfare or hotel stays. But it’s essential that when selecting a card, don’t make your decision solely based on its welcome bonus or point/mile redemption value – rather choose carefully to maximize long-term satisfaction with its features and benefits.
Airlines and hotel co-branded credit cards often provide the most generous rewards rates. You could earn free checked bags, priority boarding privileges and discounts off inflight purchases.
An all-purpose travel credit card that rewards spending across most categories and provides high rewards rates in practical categories like dining, drugstores, and streaming services can offer significant value at a relatively low annual fee. Additional perks, like insurance protection and extended warranty service may also make the card worthwhile.
Many travel and entertainment credit cards require excellent to superior credit. Be sure to review your score prior to applying to ensure a greater chance of approval.
