Table of Contents
Introduction
Travel rewards credit cards come in various categories and are not one-size-fits-all. These categories include airline rewards credit cards, hotel credit cards, and cash back credit cards. As a frequent traveler, it is important to understand the different types of travel rewards credit cards available and choose the one that best suits your needs. In addition, if you own a business, there are small business credit card counterparts available with additional features and benefits.
Methodology: How We Select the Best Travel Credit Cards
When evaluating travel credit cards, we consider 10 key metrics that matter to frequent travelers. These metrics include the structure of the card, sign-up bonuses, travel credits, non-travel bonus categories, rewards and benefits for frequent flyers and hotel guests, rewards and benefits for road warriors, elite status, luxury perks and benefits, rewards and benefits for business travelers, and the type of rewards offered.
Sign-up Bonuses
Sign-up bonuses are offers extended to new cardholders who meet the spend requirements. The travel credit card category is famous for offering generous sign-up bonuses, such as free accommodations at select hotels.
Travel Credit
Some travel credit cards offer an annual travel credit, which reduces the effective annual fee. For example, a $200 travel credit can turn a $500 annual fee into a $300 annual fee.
Nontravel Bonus Categories
Many travel credit cards offer bonus rewards for nontravel spending. Our top pick, the Citi Premier® Card, pays 3x points on purchases in categories like air travel, hotels, restaurants, supermarkets, and gas stations.
Rewards and Benefits for Frequent Flyers
Cards that offer frequent flyer benefits like elite status, in-flight perks, and complimentary airport lounge access are preferred by frequent travelers.
Rewards and Benefits for Frequent Hotel Guests
Travel credit cards that offer rewards for hotel stays, such as automatic elite status, bonus points, and free nights, are beneficial for frequent hotel guests.
Rewards and Benefits for Road Warriors
Travel credit cards that provide value on gas spending and offer benefits like rental car insurance coverage and roadside assistance are ideal for road warriors.
Elite Status
Elite status is valuable for frequent travelers who are loyal to specific brands. Super-premium travel cards often offer elite status as a benefit.
Luxury Perks and Benefits
Even travel cards that don’t fit into specific categories can offer high-value perks and benefits for frequent flyers and hotel guests. These benefits are worth considering when evaluating travel credit cards.
Rewards and Benefits for Business Travelers
Some of the best cards for business travelers have counterparts on the consumer side. These cards offer additional features and benefits for small business owners.
Type of Rewards
Many travel credit cards earn points or miles that can be redeemed for travel purchases. Some cards offer cash back on travel purchases, while others apply a flat rewards rate to all spending. Both types of cards appeal to casual travelers.
Become a Travel Credit Card Expert: Your Travel Rewards Questions Answered
What Are the Different Types of Travel Credit Cards?
There are two main types of travel credit cards: general-purpose travel cards and co-branded travel cards. General-purpose travel cards earn points or miles that can be redeemed through the issuer’s loyalty program. Co-branded travel cards earn loyalty points or miles from a specific travel merchant.
Can You Get a Travel Credit Card With Bad Credit?
Getting a travel credit card with bad credit can be difficult. Credit card companies prefer to market travel rewards cards to applicants with good to excellent credit. To improve your chances of qualifying for a travel card, start by applying for a secured credit card or a credit-builder credit card and use it responsibly to build your credit.
Is the Annual Fee Worth It for Travel Credit Cards?
The worth of an annual fee for a travel credit card depends on the card and its perks and benefits. Some travel rewards credit cards justify their annual fees with perks like annual travel credits, elite status, airport lounge access, and discounts with participating travel partners.
Should You Get More Than One Travel Card?
Whether you should get more than one travel card depends on factors like how often you travel, how much you spend on travel, and your loyalty to specific travel brands. If you’re an occasional traveler, a single general-purpose travel card may be sufficient. However, frequent travelers who spend a significant amount of money on the road may benefit from having multiple cards, including a high-end general-purpose card and co-branded cards for their preferred travel brands.
Final Word
Choosing the right travel rewards credit card is an important decision for frequent travelers. With the variety of options available, it’s essential to consider factors like annual fees, rewards and benefits, and the type of rewards offered. By evaluating these factors and answering specific questions about your travel habits and preferences, you can find the best travel credit card for your needs.