Welcome aboard, wanderlusters and savvy spenders! As we embark on this journey together, let’s explore the exciting world of travel credit cards. In this article, we’ll navigate through the plethora of options, rewards, and perks that make these cards the trusty co-pilots for every globetrotter’s adventure. So fasten your seatbelts, put your tray tables upright, and prepare for takeoff as we delve into the realm where miles, points, and passport stamps collide, all with a dash of financial wisdom and a sprinkle of wanderlust. We will get into the details about annual fees, foreign transaction fees, lounge access, rewards points and partnership programs for hotel stays, gas stations and more with each of these travel credit card options.
Get ready to make your wallet work for you as we cruise through the ins and outs of travel credit cards—your passport to a world of rewards and unforgettable experiences!
10 Factors To Consider Before Picking A Travel Credit Card
Picking the right travel credit card can make all the difference in maximizing your travel experiences and rewards. To help you make an informed decision, consider the following factors before choosing a travel credit card.
Spending Habits
Analyze your spending habits to identify the categories where you spend the most, such as dining, groceries, or travel. Choose a card that offers bonus points or miles in the categories you spend the most money in to maximize your rewards.
Travel Preferences
Consider your preferred airlines and hotel chains when selecting a card. Some cards offer rewards and perks tailored to specific airline or hotel loyalty programs, which can provide significant value if they align with your travel preferences.
Annual Fee
Travel credit cards generally come with annual fees that vary from modest to substantial. Assess whether the benefits and rewards of a particular card justify its annual fee, keeping your budget and travel frequency in mind. Some cards offer no annual fee but might have fewer perks than others.
Foreign Transaction Fees
If you travel internationally, look for a card that doesn’t charge foreign transaction fees. These fees, typically around 3% of each purchase, can add up quickly and negate the value of your rewards.
Welcome Bonus
Many travel credit cards offer a generous welcome bonus to attract new cardholders. Compare sign-up bonuses, spending requirements and redemption values to determine which card offers the best value for your spending habits.
Reward Redemption Options
Evaluate the flexibility of each card’s reward redemption options. For example, some cards offer versatile redemption options, such as statement credits, travel bookings, or transfers to airline and hotel partners, while others may have more restrictive redemption policies.
Travel Perks and Benefits
Premium travel credit cards often include perks like airport lounge access, elite status with certain hotel chains, or travel credits. First, determine which benefits are most valuable to you and whether they justify the card’s annual fee.
Interest Rates
Although paying off your balance in full each month is best to avoid interest charges, it’s essential to consider the interest rates of travel credit cards, especially if you occasionally carry a balance.
Travel Protection and Insurance
Many travel credit cards provide various travel protections, such as trip cancellation/interruption coverage, baggage delay insurance, and rental car insurance. Review these benefits and consider their importance to you when selecting a card.
Credit Score Requirements
Lastly, consider your credit score when applying for a travel credit card. Premium travel credit cards often require a good to excellent credit score for approval, so ensure you meet the card issuer’s credit requirements before applying. If you have a poor or bad credit score, travel credit card options are still available.
Evaluating these factors will help you select a travel credit card that aligns with your spending habits, travel preferences, and financial goals, ultimately maximizing your rewards and travel experiences. The whole point of a travel credit card is to make traveling more enjoyable and relaxing, which means something different to everyone.
Best No Annual Fee Travel Credit Card – The Discover it® Miles Card
No one can complain about an annual credit card fee of zero, so we are starting out the list with the Discover it® Miles credit card.
The Discover it® Miles credit card is designed for individuals seeking a simple, no-annual-fee travel rewards card with a unique welcome bonus structure. Keep reading to learn more about the welcome bonus, pros, and cons of this card to help you determine if it’s the right choice for your upcoming travel needs.
Welcome Bonus:
The Discover it® Miles credit card offers a unique welcome bonus. At the end of your first year as a card member, Discover will match all the miles you’ve earned, effectively doubling your rewards for that year. For example, if you’ve earned 30,000 miles during the first year, Discover will match that, giving you a total of 60,000 miles.
Pros:
- No Annual Fee: Did we mention this card has no annual fee? Making it an attractive choice for those seeking a travel rewards card without added costs.
- Earning Structure: Earn 1.5x points on every dollar spent, regardless of the purchase.
- Flexible Redemption Options: Redeem miles for travel purchases or as a statement credit at a rate of one cent per mile. Miles are redeemable for cash back, with no minimum redemption amount.
- No Foreign Transaction Fees: Save on costs while traveling internationally, as the card doesn’t charge foreign transaction fees.
- Free FICO® Credit Score: Monitor your credit score with free access to your FICO® Credit Score on your monthly statement or online.
- U.S.-based Customer Service: Discover is known for its excellent, U.S.-based customer service, providing support when you need it.
Cons:
- Limited Travel Perks: This card doesn’t offer premium travel benefits like airport lounge access, travel credits, or complimentary elite status with hotel chains.
- No Bonus Categories: The card doesn’t offer bonus categories for earning additional miles on specific types of purchases, such as travel or dining.
- Limited Acceptance Abroad: While Discover’s acceptance is growing, it may not be as widely accepted internationally compared to Visa or Mastercard.
The Discover it® Miles credit card is a solid choice for those seeking a simple, no-annual-fee travel rewards card with a straightforward earning structure and flexible redemption options. However, suppose you’re looking for more advanced travel perks or a higher earning potential in specific categories. In that case, you might explore other travel credit card options catering to those preferences.
Best Overall Travel Credit Card – Capital One Venture Rewards
If you love to travel and aren’t partial to specific airlines or hotels but are just looking for the best deal? The Capital One Venture Rewards credit card may be the best option for you! It is a popular travel rewards card known for its simplicity and versatility. We’ll dive into the details of the welcome bonus, the pros, and the drawbacks of this card to help you determine if it’s the ideal companion for your travel plans.s.
Welcome Bonus:
The Capital One Venture Rewards card has a welcome bonus of 75,000 miles after spending $4,000 within the first three months of account opening.
Pros:
- Flexible Redemption Options: Redeem miles for travel expenses, statement credits, or transfer to one of Capital One’s numerous airline and hotel partners.
- Easy Earning Structure: Earn a flat 2x miles per dollar spent on every purchase, taking the guesswork out of reward categories. Earn 5x miles on every dollar spent on hotels and rental cars.
- No Foreign Transaction Fees: Save on costs while traveling internationally, as the card doesn’t charge foreign transaction fees.
- Lounge Visits: This card offers 2 free lounge visits per year at over 100 locations.
- TSA PreCheck/Global Entry Credit: Receive up to $100 credit for the application fee of either TSA PreCheck or Global Entry, making your airport experience smoother.
- Rental Car Status: This travel card comes with Hertz Five Star status, which means you get a wider range of cars to choose from when renting.
- Annual Fee: The card has a reasonable $95 annual fee, which is more accessible than some premium travel credit cards.
Cons:
- Limited Travel Perks: Unlike some premium travel cards, the Capital One Venture Rewards card doesn’t offer perks such as unlimited airport lounge access or complimentary elite status with hotel chains.
- Transfer Ratios: When transferring miles to airline and hotel partners, the ratios may vary, and in some cases, you might not get the best value for your miles.
- No Bonus Categories: The card does not offer bonus categories for earning additional miles on specific types of purchases, which could be a disadvantage for those who spend heavily in specific categories like travel or dining.
- Credit Score Requirement: You do have to have good or excellent credit to get approved for this travel card, which can make it out of reach for some travelers.
The Capital One travel credit card is an excellent choice for travelers seeking simplicity and flexibility in earning and redeeming miles. Its moderate annual fee and straightforward rewards structure make it appealing to a broad range of users.
Best International Travel Credit Card – Chase Sapphire Reserve®
The Chase Sapphire Reserve® card is for global explorers and jet-setting aficionados! This card is tailor-made to elevate your international travel experience. With an alluring array of perks, valuable points, and world-class benefits, the Chase Sapphire Reserve® is your passport to a seamless and rewarding journey across borders.
So, whether you’re indulging in exotic cuisines, exploring ancient ruins, or navigating bustling cities, this card promises to be your trusty sidekick. Below we dive into this travel rewards credit card’s secrets and discover how it can transform your globetrotting escapades into a first-class experience.
Welcome Bonus:
The Chase Sapphire Reserve® has a welcome bonus of 60,000 points after spending $4,000 within the first three months of your account opening. This bonus is worth $900 when redeemed for travel through the Chase Ultimate Rewards® portal, making it a substantial incentive to kickstart your travel adventures abroad.
Pros:
- No Foreign Transaction Fees: Avoid extra costs while traveling abroad, as the card does not charge foreign transaction fees.
- Airport Lounge Access: Enjoy complimentary access to more than 1,300 airport lounges worldwide in 500 different cities with a Priority Pass™ Select membership.
- Travel Protection: The card offers robust travel insurance, including trip cancellation/interruption coverage, lost luggage reimbursement, and emergency medical evacuation coverage.
- Point Value: Points earned with this card are worth 50% more when redeemed for travel through Chase Ultimate Rewards®, increasing the value of your rewards substantially.
- Annual Travel Credit: You’ll receive a $300 annual travel credit, which effectively reduces the annual fee by reimbursing you for travel-related expenses.
- Point Earning: Earn 5x points on flights, 10x points on hotels, rental cars and Chase Dining, 3x points on dining, and 1x points per dollar spent on all other purchases.
Cons:
- High Annual Fee: Comes with a hefty $550 annual fee, which might be a deterrent for some travelers.
- Limited Transfer Partners: While Chase has several valuable transfer partners, they may not cover all the airlines and hotels you prefer.
- High Authorized User Fee: It is $75 per authorized user you add to the card
- Not for Occasional Travelers: The card’s benefits are best suited for frequent travelers, so if you don’t travel often, you might not be able to take full advantage of the card’s perks.
The Chase Sapphire Reserve® is an excellent travel credit card for frequent travelers who can make the most of its benefits, outweighing the high annual fee. However, if you’re an occasional traveler or prefer a specific airline or hotel chain, you may want to explore other travel credit card options that better suit your needs.
Best Travel Credit Card For New Travelers – Chase Sapphire Preferred®
If you are a beginner traveler or planning a big trip and haven’t signed up for a travel credit card yet, the Chase Sapphire Preferred® credit card is a popular choice among travelers who seek valuable rewards without the high annual fees.
Welcome Bonus:
At the time of writing, the Chase Sapphire Preferred® card offers a welcome bonus of 60,000 points after you spend $4,000 on purchases within the first three months from account opening. These points are worth $750 when redeemed for travel through the Chase Ultimate Rewards® portal on flights or hotels and $600 if you opt to cash out the rewards, giving you a substantial head start on your travel rewards journey. This card also comes with a $50 annual hotel credit.
Pros:
- Point Value: If redeemed for travel through the Chase Ultimate Rewards® portal, points are worth 25% more, increasing the overall value of your rewards.
- Earning Structure: Earn 5x points on Lyft rides, 3x points for dining, online grocery purchases, and select streaming services, 2x points for travel purchases, and 1x point per dollar spent on all other purchases.
- Other Subscriptions: With this travel credit card, you get 6 months of Instacart, access to DashPass (for DoorDash and Caviar), and $10 in monthly credits to GoPuff.
- Transfer Partners: Chase has a solid lineup of airline and hotel transfer partners, allowing you to transfer points at a 1:1 ratio, which can potentially yield even greater value.
- Travel Protection: The card offers a range of travel insurance benefits, such as trip cancellation/interruption insurance, baggage delay insurance, and trip delay reimbursement.
- No Foreign Transaction Fees: Save on costs while traveling abroad, as the card does not charge foreign transaction fees.
- Annual Fee: The card has a reasonable $95 annual fee, which is significantly lower than the Chase Sapphire Reserve® card.
Cons:
- Limited Travel Perks: The Chase Sapphire Preferred® card does not offer some of the premium travel perks found in more expensive cards, such as airport lounge access or annual travel credits.
- Lower Point Value: While the 25% boost in point value when redeemed through Chase Ultimate Rewards® is a plus, it falls short of the 50% boost offered by the Chase Sapphire Reserve® card.
- Complicated Rewards: The rewards system is not as straightforward to use as other travel credit cards, and not all hotels, restaurants, rideshare, etc., are eligible for travel reward redemption points.
The Chase Sapphire Preferred® credit card is an excellent choice for travelers seeking valuable rewards and travel protection without a high annual fee. Its solid earning structure and transfer partners make it a versatile option for various travel budgets and styles.
Best Travel Credit Card For Students – Bank of America® Travel Rewards for Students
If you are getting ready to study abroad, take an international trip with friends, or just want a credit card to build credit and earn points so you can take a celebratory graduation trip, the Bank of America® Travel Rewards for Students could be a perfect option.
This travel credit card is designed specifically for students seeking a straightforward travel rewards card with no annual fee.
Welcome Bonus:
The Bank of America® Travel Rewards for Students credit card has a welcome bonus of 25,000 points after you spend $1,000 on purchases within the first 90 days from account opening. This is a significantly lower spending amount than other travel credit cards. These points are worth $250 in statement credits toward travel or dining purchases.
Pros:
- No Annual Fee: This card has no annual fee, making it an attractive choice for students who may be on a tight budget.
- Earning Structure: Earn 1.5 points per dollar spent on every purchase, with no limit on the points you can earn and no expiration on the points.
- Flexible Redemption Options: Redeem points for travel purchases, including flights, hotels, car rentals, and more, as statement credits.
- No Foreign Transaction Fees: Save on costs while traveling internationally, as the card doesn’t charge foreign transaction fees.
- 0% Introductory APR: Enjoy a 0% introductory APR on purchases for the first 12 billing cycles, which can be helpful for students who might need to carry a balance in the short term.
- Bank of America Preferred Rewards: If you’re a Bank of America customer, you can qualify for a 25% to 75% bonus on your points, depending on your account balances, through the Preferred Rewards program.
Cons:
- Limited Travel Perks: This card doesn’t offer premium travel benefits like airport lounge access, travel credits, or complimentary elite status with hotel chains.
- No Bonus Categories: The card doesn’t offer bonus categories for earning additional points on specific types of purchases, such as travel or dining.
- Basic Travel Protection: The travel protection offered by this card is limited compared to more premium travel credit cards.
In summary, the Bank of America® Travel Rewards for Students credit card is a solid choice for students seeking a simple, no-annual-fee travel rewards card with a straightforward earning structure and flexible redemption options. However, if you’re looking for more advanced travel perks or a higher earning potential in specific categories, you might want to explore other travel credit card options that cater to those preferences.
Best Travel Credit Card for Veteran Travelers – American Express® Gold
If you own a business, regularly dine out and travel a ton, the American Express® Gold Card is a great option not only for traveling but for great dining rewards in addition to the normal Amex benefits.
Welcome Bonus:
The American Express® Gold Card offers a welcome bonus of 60,000 Membership Rewards® points after you spend $4,000 on purchases within the first six months from account opening, while most cards on our list have a spending time frame of three months. These points can be redeemed for travel, gift cards, merchandise, or transferred to one of American Express’s numerous airline and hotel partners.
Pros:
- Earning Structure: The card offers 4x Membership Rewards® points per dollar spent at restaurants (including takeout and delivery), 4x points at U.S. supermarkets (up to $25,000 per calendar year), 3x points on flights booked directly with airlines or on amextravel.com and 1x points on other eligible purchases.
- Dining Credit: Receive up to $120 in dining credits annually ($10 per month) at select partners, including Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations (enrollment required).
- Uber Credit: Get up to $120 in Uber Cash annually with your Gold Card. If you add your Card to your Uber account, you’ll automatically get $10 in Uber Cash every month. Remember, you get 4x points on any Uber Eats purchase).
- No Foreign Transaction Fees: Save on costs while traveling internationally with no foreign transaction fees.
- Transfer Partners: American Express has an extensive list of airline and hotel transfer partners, allowing you to transfer points at varying ratios for potentially greater value.
- Travel and Shopping Protections: The card offers several protections, such as baggage insurance, car rental loss and damage insurance, and purchase protection.
- Hotel Collection Benefits: When booking through the American Express Hotel Collection, receive a $100 hotel credit and room upgrades when available for stays of two nights or longer.
Cons:
- Annual Fee: The American Express® Gold Card comes with a $250 annual fee, which might be a deterrent for some cardholders.
- Limited Balance Options: This card has limited options for carrying a balance each month and has a high APR and possible penalty for the pay-over-time feature.
- Limited Airline Bonus Category: The 3x points on flights are only applicable when booked directly with airlines or on amextravel.com, which may not be as flexible as some other travel cards.
- No Lounge Access: Unlike the more premium American Express® Platinum Card, the Gold Card does not offer complimentary airport lounge access.
The American Express® Gold Card is an excellent choice for individuals who spend heavily on dining, food delivery and groceries, offering valuable rewards and perks in those categories. The card’s benefits can easily offset the annual fee if you take full advantage of its features.
Best Travel Credit Card For Bad Credit – Bank of America® Customized Cash Rewards Secured Credit Card
If you have bad credit, it can be hard to get approved for a credit card, but have no fear; you can still earn some rewards for traveling. The Bank of America® Customized Cash Rewards Secured Credit Card is designed for individuals looking to build or rebuild their credit while earning cash back on their purchases.
Welcome Bonus:
The Bank of America® Customized Cash Rewards Secured Credit Card does not offer a welcome bonus currently. Secured credit cards generally do not come with a welcome bonus, as their primary purpose is to help cardholders build or repair their credit.
Pros:
- Cash Back Rewards: Earn 3% cash back in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter), and 1% cash back on all other purchases.
- Customizable Rewards: The card allows you to change your 3% choice category once per calendar month, offering flexibility to maximize your rewards based on your spending habits.
- Graduation Potential: Bank of America periodically reviews your account for a possible upgrade to an unsecured card, which can help improve your credit over time.
- Annual Fee: This card has no annual fee, which is a great perk.
- Credit Line: Your credit line is determined by the security deposit you provide, ranging from $300 to $4,900, giving you control over your credit limit.
- Account Tools: Access to tools like account alerts, mobile banking, and free FICO® credit score access can help you monitor your credit and stay on track.
Cons:
- Security Deposit: As a secured credit card, you are required to provide a security deposit, which can be a barrier for some individuals. This card requires a $200 minimum security deposit to open your account. The higher the security deposit you put down, the higher your credit limit will be.
- Foreign Transaction Fee: The card charges a 3% foreign transaction fee, which makes it less suitable for international travel.
The Bank of America® Customized Cash Rewards Secured Credit Card is an excellent option for those looking to build or rebuild their credit while still earning cash-back rewards. The customizable rewards structure is a unique feature among secured cards.
Best Airline Travel Credit Card – United Club℠ Infinite Card
If you are interested in an airline-specific travel credit card, the best one on the market will be the United Club℠ Infinite Card. This is a premium co-branded airline credit card designed for frequent United Airlines travelers who want to enjoy luxury travel benefits.
Welcome Bonus:
The United Club℠ Infinite Card offers a welcome bonus of 80,000 bonus miles after you spend $5,000 on purchases within the first three months of account opening. These bonus miles can be used toward booking flights on United Airlines, as well as for upgrades, in-flight purchases, food and more.
Pros:
- United Club Membership: Enjoy a complimentary United Club membership, providing access to United Club lounges and participating Star Alliance-affiliated lounges worldwide.
- Earning Structure: Earn 4x miles per dollar spent on United Airlines purchases from airfare to inflight entertainment and more, 2x miles per dollar spent on all other travel and dining, and 1x mile per dollar spent on all other purchases.
- Free Checked Bags: Receive your first and second checked bags for free when you travel on United-operated flights.
- Premier Access: Enjoy priority check-in, security screening (where available), priority boarding, and baggage handling when flying with United Airlines.
- No Foreign Transaction Fees: Save on costs while traveling internationally, as the card doesn’t charge foreign transaction fees.
- Travel and Purchase Protections: The card offers several protections, including trip cancellation/interruption insurance, baggage delay insurance, trip delay reimbursement, and purchase protection.
Cons:
- Annual Fee: The United Club℠ Infinite Card comes with a hefty $525 annual fee, which may be a significant drawback for some cardholders.
- Limited to United Airlines: The card’s benefits are mainly tailored to United Airlines travelers. If you frequently fly with multiple airlines, you may want to consider a more flexible travel rewards card.
- No Introductory APR: The card does not offer an introductory APR on purchases or balance transfers, which may be important for some users.
The United Club℠ Infinite Card is an excellent choice for dedicated United Airlines travelers seeking luxury travel benefits like United Club membership and Premier Access. However, its high annual fee and focus on United Airlines may not suit those who value flexibility or want a more affordable travel credit card.
Finding The Right Card For Your Adventures
The world of travel credit cards offers a plethora of options to suit every traveler’s needs. From luxurious benefits to flexible rewards, the best travel credit cards help globetrotters save money and make their journeys more enjoyable.
In this article, we’ve handpicked the top travel credit cards that stand out in various categories, such as airline-specific to luxury travel credit cards. We’ve also highlighted the welcome bonuses, earning structures, and exclusive perks each card offers. Remember to utilize your credit card’s travel portal to understand the best way to book travel, redeem rewards, outline eligible purchases and maximize your point!
By understanding your travel preferences and spending habits, you can select the perfect card to elevate your travel experiences while earning valuable rewards along the way. Bon Voyage!
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