Best Credit Cards For Travel Rewards

Travel rewards credit cards are a powerful tool for avid travelers. With the right card, you can accumulate miles, earn hotel points,

and unlock exclusive perks like airport lounge access, travel insurance, and more. However, finding the best credit card for travel rewards can be overwhelming given the numerous options available.

This guide will help you navigate through the top travel rewards cards, highlighting their benefits, fees, and how they can enhance your travel experience.

Why Choose a Travel Rewards Credit Card?

Travel credit cards offer unique benefits that go beyond simple cash-back rewards. Here are some key reasons why you should consider a travel rewards credit card:

Earn Points and Miles: The most significant benefit is the ability to accumulate points or miles with every purchase, which can later be redeemed for free flights, hotel stays, or travel upgrades.

Exclusive Travel Perks: Travel cards often come with bonuses like airport lounge access, free checked bags, travel insurance, and no foreign transaction fees.

Sign-Up Bonuses: Many travel cards offer lucrative sign-up bonuses, allowing you to earn thousands of points or miles after spending a specific amount within the first few months of account opening.

How to Choose the Best Travel Credit Card?

Before diving into the specific card options, it’s crucial to consider the factors that should guide your choice:

Annual Fee: Some travel rewards cards come with hefty annual fees, but these often come with superior perks. Weigh the benefits against the cost to see if the fee is justifiable.

Point Earning Rate: The rate at which you earn points per dollar spent can vary. Some cards offer higher rewards on travel-related purchases, while others may offer better rates on dining, groceries, or everyday spending.

Redemption Options: Consider whether the card offers flexible redemption options, including booking through travel portals or transferring points to partner airlines or hotels.

Travel Perks and Protections: Look for benefits like travel insurance, purchase protection, and trip cancellation coverage that can make a difference when things go awry during your trip.

Foreign Transaction Fees: If you travel internationally, it’s crucial to choose a card that doesn’t charge foreign transaction fees.

Best Credit Cards for Travel Rewards

Now, let’s explore some of the top travel rewards credit cards that offer excellent value for frequent travelers.

1. Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® is one of the most popular travel rewards cards, especially for beginners.

• Annual Fee: $95
• Point Earning Rate: Earn 2x points on travel and dining and 1x points on all other purchases.
• Sign-Up Bonus: Earn 60,000 points after spending $4,000 in the first three months.
• Redemption Options: Points are worth 25% more when redeemed for travel through the Chase Ultimate Rewards portal. You can also transfer points to Chase’s airline and hotel partners.
• Travel Perks: No foreign transaction fees, trip cancellation/interruption insurance, and baggage delay insurance.

The Chase Sapphire Preferred is a great all-around card for anyone looking to maximize travel rewards without paying a hefty annual fee.

2. American Express® Gold Card

The American Express® Gold Card is a versatile option, especially for those who spend a lot on dining and groceries.

• Annual Fee: $250
• Point Earning Rate: Earn 4x points at restaurants worldwide and on up to $25,000 spent annually at U.S. supermarkets. Earn 3x points on flights booked directly with airlines or via Amex Travel.
• Sign-Up Bonus: Earn 60,000 Membership Rewards points after spending $4,000 in the first six months.
• Redemption Options: Transfer points to over 20 airline and hotel partners, or redeem points for travel directly through the Amex Travel portal.
• Travel Perks: $120 dining credit, $100 hotel credit when booking through Amex’s Hotel Collection, and no foreign transaction fees.

While the annual fee is higher than some cards, the American Express Gold offers excellent earning potential for dining and groceries, making it a good option for foodies and families.

3. Capital One Venture Rewards Credit Card

The Capital One Venture Rewards card is a straightforward travel rewards card that offers flat-rate earning on all purchases.

• Annual Fee: $95
• Point Earning Rate: Earn 2x miles on every purchase, every day.
• Sign-Up Bonus: Earn 75,000 miles after spending $4,000 in the first three months.
• Redemption Options: Miles can be redeemed for travel through Capital One’s portal or transferred to more than 15 travel partners.
• Travel Perks: No foreign transaction fees, up to $100 credit for Global Entry or TSA PreCheck, and travel accident insurance.

The simplicity of the Capital One Venture card makes it appealing to travelers who don’t want to deal with multiple spending categories but still want to earn valuable rewards.

4. The Platinum Card® from American Express

For those who want luxury and premium travel benefits, the Platinum Card® from American Express is one of the best options.

• Annual Fee: $695
• Point Earning Rate: Earn 5x points on flights booked directly with airlines or through Amex Travel, and 5x points on prepaid hotels booked through Amex Travel.
• Sign-Up Bonus: Earn 80,000 Membership Rewards points after spending $6,000 in the first six months.
• Redemption Options: Transfer points to over 20 airline and hotel partners, or redeem for travel via Amex Travel.
• Travel Perks: Access to over 1,300 airport lounges worldwide, $200 airline fee credit, $200 Uber Cash, and complimentary elite status with Marriott Bonvoy and Hilton Honors.

Although the Platinum Card comes with a steep annual fee, its travel perks are unrivaled, making it ideal for frequent luxury travelers.

5. Citi Premier® Card

The Citi Premier® Card offers generous rewards across several categories, including travel, dining, and groceries.

• Annual Fee: $95
• Point Earning Rate: Earn 3x points on air travel, hotels, dining, supermarkets, and gas stations, and 1x points on all other purchases.
• Sign-Up Bonus: Earn 60,000 points after spending $4,000 in the first three months.
• Redemption Options: Redeem points for travel through Citi’s ThankYou Travel portal or transfer them to various airline loyalty programs.
• Travel Perks: No foreign transaction fees, trip cancellation/interruption protection, and worldwide car rental insurance.

The Citi Premier® Card stands out for its broad earning categories, making it an excellent choice for everyday spending and travel alike.

Maximizing Your Travel Rewards

Once you’ve chosen the best travel credit card for your needs, it’s essential to use it strategically to maximize rewards.

1. Always Use the Card for Travel-Related Purchases

When booking flights, hotels, or other travel expenses, use your travel rewards card to earn more points or miles.

Many cards offer extra rewards in these categories, allowing you to build up your balance faster.

2. Pay Attention to Bonus Categories

Some cards offer higher rewards for specific spending categories, such as dining or groceries.

Be sure to align your spending with the card’s bonus categories to maximize your rewards.

3. Take Advantage of Transfer Partners

If your card allows for point transfers to airlines or hotel partners, this can often unlock greater value.

Research the best transfer partners for your preferred travel destinations to get the most out of your points.

4. Avoid Carrying a Balance

Interest charges can negate the value of any rewards you earn, so it’s crucial to pay off your balance in full each month.

This way, you can enjoy the rewards without paying interest.

Frequently Asked Questions (FAQ)

1. What is the best credit card for earning travel rewards?

There isn’t a one-size-fits-all answer, as the best card for you depends on your spending habits, travel preferences, and desired perks. However, popular options include the Chase Sapphire Preferred® for beginners and the Platinum Card® from American Express for luxury travelers.

2. How do travel rewards credit cards work?

Travel rewards credit cards earn points or miles with each purchase, which can later be redeemed for travel-related expenses like flights, hotels, car rentals, or even travel upgrades. Some cards also offer additional perks like travel insurance and no foreign transaction fees.

3. Are travel rewards credit cards worth the annual fee?

It depends on how often you travel and how well you can take advantage of the card’s perks. If you travel frequently and use the card’s benefits like lounge access, travel insurance, or bonus points, the annual fee is often worth it.

4. Do travel rewards credit cards have foreign transaction fees?

Many travel rewards cards waive foreign transaction fees, making them ideal for international travel. Always check the card’s terms before applying to ensure it doesn’t charge foreign transaction fees.

5. Can you transfer points between airlines and hotels?

Some travel rewards cards allow you to transfer points to airline and hotel loyalty programs. This can be an excellent way to unlock better redemption values, especially when booking with your preferred airlines or hotel chains.