A travel reward card is a type of credit card that allows you to earn points or miles that you can redeem for travel reservations, such as flights, hotels, car rentals, or cruises. Some travel reward cards also offer other features and benefits that are valuable to frequent travelers, such as airport lounge access, travel insurance, baggage fee waivers, or credits for Global Entry or TSA PreCheck.
You might need a travel reward card if you:
- Travel often or plan to travel in the future
- Want to save money on your travel expenses
- Enjoy flexibility and variety in your travel options
- Have good credit and can pay your balance in full every month
However, you might not need a travel reward card if you:
- Travel rarely or not at all
- Prefer cash back or other types of rewards
- Have limited or poor credit or carry a balance on your card
- Don’t want to pay an annual fee or deal with complex redemption rules
Ultimately, the decision to get a travel reward card depends on your personal preferences and financial situation. You should weigh the value of the rewards and benefits against the costs and limitations of the card. You can also compare different travel reward cards and see which one offers the best fit for your needs.
How to redeem your points
There are several ways to earn rewards on a travel reward card, depending on the card you have. Here are some common methods:
- Sign-up bonuses: Many travel reward cards offer a large amount of points or miles as a bonus for spending a certain amount in the first few months of opening the card. For example, the Chase Sapphire Preferred® Card offers 100,000 points after spending $4,000 in the first three months.
- Points or miles for spending: Most travel reward cards also offer a base rate of points or miles for every dollar you spend on the card, as well as bonus rates for certain categories of spending, such as travel, dining, or groceries. For example, the Capital One Venture Rewards Credit Card offers 2X miles on every purchase, while the Capital One Venture X Rewards Credit Card offers 10X miles on hotels and car rentals booked through Capital One Travel℠, 5X miles on flights booked through Capital One Travel℠ or directly with airlines, and 2X miles on all other purchases.
- Ongoing bonuses and promotional offers: Some travel reward cards also offer additional ways to earn points or miles, such as referrals, anniversary bonuses, loyalty programs, or special deals with partners. For example, the Bank of America® Travel Rewards credit card offers a 10% customer points bonus on every purchase when you have an active Bank of America® checking or savings account.
- Strategic spending: To maximize your rewards earning potential, you should use your travel reward card for as many purchases as possible, especially those that fall into the bonus categories. You should also pay attention to any promotions or offers that your card issuer or partner may have, such as limited-time discounts or bonuses. You should also plan your spending to meet the sign-up bonus requirement within the time frame.
However, you should also be careful not to overspend or carry a balance on your travel reward card, as this can negate the value of your rewards and incur interest charges. You should only spend what you can afford to pay off in full every month.
These are some of the best credit travel reward cards in the industry
Pros and cons of the top travel reward cards. Some have perks that are interesting.
- Chase Sapphire Preferred® Card: This card offers a generous sign-up bonus of 100,000 points after spending $4,000 in the first three months, which is worth $1,250 when redeemed for travel through Chase Ultimate Rewards®. You also earn 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), and 2X points on other travel purchases. You can transfer your points to 13 airline and hotel partners at a 1:1 ratio, or use them to book travel directly through Chase or pay yourself back for eligible purchases. The card has a $95 annual fee, but no foreign transaction fees. Some of the travel perks include trip cancellation/interruption insurance, primary car rental insurance, baggage delay insurance, and purchase protection. The main drawbacks of this card are the relatively high annual fee and the limited redemption options for non-travel purchases.
- Capital One Venture Rewards Credit Card: This card offers a sign-up bonus of 60,000 miles after spending $3,000 in the first three months, which is worth $600 when redeemed for travel. You also earn 2X miles on every purchase, with no categories or caps. You can redeem your miles for travel purchases made with your card in the past 90 days, or transfer them to 15 airline and hotel partners at varying rates. The card has a $95 annual fee, but no foreign transaction fees. Some of the travel perks include up to $100 credit for Global Entry or TSA PreCheck application fee every four years, travel accident insurance, secondary car rental insurance, and extended warranty protection. The main drawbacks of this card are the lower sign-up bonus and rewards rate compared to the Chase Sapphire Preferred®, and the less favorable transfer ratios to some partners.
- Capital One Venture X Rewards Credit Card: This card is a premium travel rewards card that offers a sign-up bonus of 100,000 miles after spending $10,000 in the first six months, which is worth $1,000 when redeemed for travel. You also earn 10X miles on hotels and car rentals booked through Capital One Travel℠, 5X miles on flights booked through Capital One Travel℠ or directly with airlines, 2X miles on all other purchases, and a $300 annual travel credit that can be used for any travel purchase. You can redeem your miles the same way as the Capital One Venture Rewards Credit Card. The card has a $395 annual fee, but no foreign transaction fees. Some of the travel perks include unlimited access to over 1,300 airport lounges worldwide through Priority Pass™ Select membership, up to $100 credit for Global Entry or TSA PreCheck application fee every four years, primary car rental insurance, trip cancellation/interruption insurance, lost luggage reimbursement, and cell phone protection. The main drawbacks of this card are the high annual fee and spending requirement for the sign-up bonus.
- Bank of America® Travel Rewards credit card: This card offers a sign-up bonus of 25,000 points after spending $1,000 in the first 90 days, which is worth $250 when redeemed for travel. You also earn 1.5X points on every purchase, with no categories or caps. You can redeem your points for travel purchases made with your card in the past 12 months, or for cash back or gift cards. The card has no annual fee and no foreign transaction fees. Some of the travel perks include travel accident insurance, secondary car rental insurance, and purchase protection. The main drawbacks of this card are the lower sign-up bonus and rewards rate compared to the other cards, and the limited redemption options for non-travel purchases.
Summary of the Best Travel Reward Cards
Chase Sapphire Preferred Card:
Best overall and for beginners. The Chase Sapphire Preferred® Card is a good choice for travelers who want a large sign-up bonus, flexible points that can be transferred to many travel partners, and bonus rewards on travel and dining purchases.
Capital One Venture Rewards Credit Card:
Best for frequent travelers. The Capital One Venture Rewards Credit Card is a good choice for travelers who want a simple and consistent way to earn miles on every purchase.
Capital One Venture X Rewards Credit Card:
Best premium travel rewards card. The Capital One Venture X Rewards Credit Card is a good choice for travelers who want to earn more miles on travel purchases booked through Capital One Travel℠ or directly with airlines.
Bank of America Travel Rewards credit card:
Best for flat-rate rewards and no annual fee. The Bank of America® Travel Rewards credit card is a good choice for travelers who want a low-cost and hassle-free way to earn rewards, especially if they have an active Bank of America® checking or savings account.