The Best Travel Reward Credit Cards
How to choose a travel rewards card
A travel rewards card lets you earn points or miles on purchases you already make. You can then use the rewards for flights, hotels and other travel costs.
The right card should fit your spending and the way you travel. Travel rewards make the most sense when you pay your full balance each month, since interest charges can wipe out the value of your points.
How to choose a travel credit card
Compare the following before you apply:
- Annual fee
- Welcome offer
- Rewards categories
- Foreign transaction fees
- Airline and hotel partners
- Travel insurance
- Redemption options
- Points expiration rules
- Credit score and eligibility rules
A large welcome offer may look appealing, but the spending target still needs to fit your budget. Look at the card’s lasting value and avoid buying more than usual just to earn a bonus.
Types of travel rewards cards
Flexible travel rewards cards
Flexible travel reward credit cards let you use points with several airlines, hotel groups and booking services. A flexible card is a good fit when you do not want to rely on one travel brand.
Hotel rewards cards
Hotel rewards cards may come with extra points, free-night awards and room upgrades. You will usually get the most from a hotel card when you often stay with the same hotel group.
Airline rewards cards
Airline rewards cards may include free checked bags, priority boarding and miles for future flights. An airline card may suit you when you often fly with the same carrier, but the points may give you less choice than flexible rewards.
Cards for international travel
Choose a card with no foreign transaction fees when you often travel abroad. Travel insurance, rental car coverage and emergency help may also cut the cost of common travel problems.
Annual fees and welcome offers
A welcome offer often requires you to spend a set amount within the first few months. Check the target before applying and make sure your normal spending can cover it.
An annual fee is worth paying only when you use enough rewards and perks to cover the cost. A card with no annual fee may be a better choice when you travel less often.
Travel rewards and benefits
Travel reward credit cards may include:
- Points or miles
- Hotel credits
- Free-night awards
- Airport lounge access
- Travel insurance
- Rental car coverage
- No foreign transaction fees
Focus on the perks that suit your trips. Lounge access may help if you fly often, while flexible points may work better when you book with several airlines and hotel groups.
What to consider before applying
Compare each card’s interest rate, credit rules, redemption limits and points expiration policy. Check whether you must use a set travel portal or transfer points to select loyalty programs.
Pay your balance in full to protect the value of your rewards. Card fees, reward rates and terms can change, so review the issuer’s current offer before applying.
Which type of travel card fits you?
Choose a flexible rewards card when you want more airline and hotel options. A hotel or airline card may give you better perks when you often use the same brand.
Your travel plans and normal spending should guide your choice. Compare annual fees, reward value and redemption options instead of choosing a card based only on its welcome offer.
FAQs
What is the best travel rewards card to have?
Travel reward credit cards do not have one best choice for every traveler. Choose a card that fits your spending, travel plans and preferred way to use points.
Are travel rewards cards worth it?
Yes, travel rewards cards can be worth the cost when you use the perks and pay your balance in full. Annual fees and interest can cost more than the rewards you earn.
Is it better to pay with points or cash?
Use points when the reward price gives you good value compared with the cash price. Pay cash when the fare is low or the points rate is high.
What are the downsides of travel credit cards?
Travel credit cards may have annual fees, strict redemption rules and limited award space. Interest charges and unused perks can also cut the value of your rewards.
How many credit cards should you have?
Keep only the cards you can track and pay on time. One or two well-chosen cards may be enough when the rewards and perks meet your needs.
Is it better to use points for flights or hotels?
Flights may give you more value when cash fares are high, while hotel points can help cover costly stays. Compare the cash rate with the points rate before booking.
What common travel rewards mistakes should you avoid?
Avoid extra spending, high-interest debt, unused perks and poor-value redemptions. Check award space before moving points to an airline or hotel program.