A travel points credit card can be one of the best tools for frequent travelers to save money and earn rewards for future trips. These cards allow you to accumulate points or miles for every dollar spent, which can be redeemed for flights, hotels, car rentals, and even experiences. However, not all travel credit cards are created equal, and it’s important to choose one that fits your travel style and spending habits.
In this guide, we’ll walk you through how travel points credit cards work, what to look for when choosing one, and how to maximize the rewards you earn.
- How do travel points credit cards work?
Travel points credit cards allow you to earn rewards in the form of points or miles every time you make a purchase. The more you use your card, the more points you accumulate, which can be redeemed for travel-related expenses.
There are two main types of travel credit cards:
- Co-branded travel cards: These cards are issued in partnership with specific airlines or hotel chains, like Delta or Marriott. They allow you to earn points that are directly tied to that brand’s loyalty program.
- General travel rewards cards: These cards are not tied to a specific airline or hotel chain and offer more flexibility in how you redeem your points, such as through travel portals or statement credits for any travel purchases.
For example, with a general travel card like the Chase Sapphire Preferred, you earn points that can be redeemed for flights, hotels, or transferred to various travel partners. Meanwhile, a co-branded card like the Delta SkyMiles Credit Card will earn miles exclusively for use with Delta and its partners.
- What to look for when choosing a travel points credit card
When selecting a travel points credit card, consider the following factors to find the best card for your needs:
- Sign-up bonus: Many travel credit cards offer lucrative sign-up bonuses, like 50,000 points or more, if you meet a spending requirement within the first few months. This can give your rewards a big boost right from the start.
- Earning potential: Pay attention to how many points or miles you earn per dollar spent. Some cards offer bonus points for specific categories like travel, dining, or groceries. For example, you might earn 2x points on dining and travel purchases and 1x points on all other purchases.
- Redemption options: Consider how flexible the points are when it comes to redeeming them. General travel cards typically offer more redemption options, including flights, hotels, car rentals, and even cash back. Co-branded cards may limit you to using your points with one airline or hotel chain.
- Foreign transaction fees: If you travel internationally, look for a card that doesn’t charge foreign transaction fees, as these can add 2% to 3% to every purchase made abroad.
- Annual fee: Many travel credit cards come with an annual fee, but this fee can be worth it if the rewards and perks outweigh the cost. Make sure to assess whether the value you’ll receive from the card justifies the fee.
- Perks and benefits: Some travel cards offer valuable perks like free checked bags, airport lounge access, TSA PreCheck/Global Entry reimbursement, or travel insurance. These benefits can enhance your travel experience and save you money.
- How to maximize your travel points
Once you have a travel points credit card, the goal is to maximize the rewards you earn and get the most value when redeeming them. Here’s how:
- Meet the minimum spending requirement: To earn the sign-up bonus, you’ll need to spend a certain amount within the first few months of opening the account. Be sure to plan your purchases to hit this target without overspending.
- Use your card for everyday purchases: To accumulate points quickly, use your travel credit card for as many purchases as possible—especially in bonus categories like dining, travel, and groceries. Just be sure to pay off your balance in full each month to avoid interest charges.
- Book travel through the card’s portal: Some general travel credit cards, like the Chase Sapphire Preferred or American Express Gold, offer higher redemption rates when you book travel through their respective portals. For example, you might get 1.25 cents per point when booking flights or hotels directly through the issuer’s travel platform.
- Transfer points to travel partners: Many general travel cards allow you to transfer points to partner airlines or hotel loyalty programs. This can sometimes offer better value, especially if you’re able to book flights or hotel stays at a lower point redemption rate through the loyalty program.
- Take advantage of travel perks: Don’t forget to use the additional perks that come with your card, such as free checked bags, airport lounge access, or travel insurance. These benefits can make your travel experience more enjoyable and save you money.
- Popular travel points credit cards
Here are a few popular travel points credit cards to consider:
- Chase Sapphire Preferred: Offers 2x points on travel and dining, 1x on other purchases, and a flexible points transfer system to several airline and hotel partners.
- American Express Gold Card: Earns 4x points on dining and groceries, 3x on flights, and 1x on everything else. Points can be transferred to airline and hotel partners.
- Capital One Venture Rewards: Earns 2x miles on every purchase, and miles can be redeemed for travel expenses or transferred to travel partners.
- Delta SkyMiles Gold American Express Card: Great for frequent Delta flyers, offering 2x miles on Delta purchases, restaurants, and U.S. supermarkets, plus free checked bags.
- Avoid common pitfalls with travel credit cards
While travel points credit cards offer great rewards, there are some common pitfalls to avoid:
- Carrying a balance: If you don’t pay off your balance in full each month, interest charges can outweigh the rewards you earn.
- Overvaluing points: Make sure the points you earn are worth the spending requirements. Always check the value of points when redeeming them for travel or transferring them to loyalty programs.
- Ignoring annual fees: If your card has an annual fee, ensure you’re getting enough value from the rewards and perks to justify the cost.
A travel points credit card can be a powerful tool for earning rewards and enjoying perks while you travel. By choosing the right card, maximizing your spending in bonus categories, and redeeming your points wisely, you can save money and enhance your travel experiences. Whether you’re a frequent traveler or someone planning an occasional vacation, a travel credit card can help you get there for less.