How To Choose a Travel Rewards Credit Card

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Not all travel credit cards are created equal. Choosing the right one can mean free flights, hotel stays, and luxury perks — but picking the wrong one could leave you with high fees and limited benefits. 

You don’t want to experience a bad case of travel FOMO when others are enjoying swanky lounges and free upgrades. That’s why we’re breaking down how to find the best travel rewards credit card so you can travel in style. 

The Different Types of Travel Rewards Credit Cards

The first step to knowing which card to choose is knowing the types of cards there are to choose from.

With travel credit cards, you have general, airline-specific, and hotel-specific options. 

General travel rewards cards (flexible points programs)

While some credit cards reward you for being loyal to a specific airline or hotel chain (or their partners), others have a much more flexible rewards system.

If you don’t stick with one chain or want the option to switch up who you book with, look for a general travel card like the Chase Sapphire Preferred® Card, Capital One Venture X Rewards Credit Card, or The Platinum Card® from American Express. 

This way, you can earn points on your everyday purchases and redeem your rewards with a variety of airlines and hotels. 

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Airline-specific credit cards

Airline credit cards earn you frequent flier miles and offer perks like free checked bags, priority boarding, and discounts on in-flight purchases — but only for that airline.

As such, choosing an airline-specific credit card makes the most sense if you fly with the same airline repeatedly, whether due to favoritism or necessity. 

For example, if your local airport only has two airlines that have a direct route to visit your parents, you might choose one of those two airlines to be loyal to. 

Some popular airline credit cards are the Delta SkyMiles® Gold American Express, Southwest Rapid Rewards® Priority Credit Card, and The New United℠ Explorer Card.

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Hotel-specific credit cards

Similar to airline-specific credit cards, hotel credit cards earn you free nights, perks, and upgrades for a particular hotel chain. But you’ll need to be loyal to that hotel brand.

For example, if you love Hilton, you may be interested in the Hilton Honors American Express Card. Or if you frequently stay at hotels in the Marriott family, there’s the Marriott Bonvoy Boundless® Credit Card.

While you may find it limiting to book the same hotel chain for most of your trips, you can earn a lot of rewards by being a loyal customer with a hotel-specific credit card in your wallet. 

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Key Factors to Consider When Choosing a Travel Rewards Card

Before you choose a new travel rewards credit card, you need to do your research to find the perfect fit for your travel dreams. 

While it will be hard to find a travel credit card that checks all your boxes, consider looking for a card that has these features and benefits:

Realistic sign-up bonus and spending requirements

Many travel rewards credit cards come with exciting sign-up bonuses, but you must meet a required spending threshold within the first few months to earn that bonus. 

Before applying, make sure you can meet the spending requirement without feeling pressured to overspend — the value of the bonus is never worth spending more than you can afford. 

Compare different offers to see which has the best value while still being the most attainable.

A points-earning structure that matches your spending habits

Rewards credit cards have varying earning rates for different types of purchases. For example, some offer higher points per dollar spent on restaurants and dining out, while others reward grocery and gas station purchases. 

Consider your regular spending habits, then choose a card that rewards those. Then, once you find the right card, plan your spending to make the most of it. 

For instance, if you have multiple credit cards, make sure you’re using the right one at the right time. If one card offers bonus points on dining, use it for restaurants and coffee shops. If your other card earns extra rewards on travel, book flights and hotels with it.

Benefits that pay for the annual fee

Understandably, many of us shy away from paying annual credit card fees — why should we pay a fee to access our own credit?!

But annual fees usually mean perks — and the higher the fee, the better the perks. 

For example, premium travel cards like the Chase Sapphire Reserve® and The Platinum Card® from American Express can have fees upwards of $500, but they also come with premium perks like airport lounge access, travel credits, elite status with hotels, and travel insurance. 

If you travel frequently, these benefits can justify the high cost. Crunch the numbers to compare how much you earn in rewards, travel credits, and benefits against the fee. 

While it’s never a bad idea to look for a fee-free card, a travel credit card with an annual fee can still be worth it if the perks and rewards outweigh the cost. 

Credit card travel protections

Many travel rewards cards come with free travel protections that can step in to save the day when your trip doesn’t go as planned. 

These protections include trip cancellation insurance, rental car coverage, and lost baggage reimbursement.

Airline and hotel partnerships that match your travels

Some travel credit cards are co-branded with airlines and hotel chains, and you earn more rewards and get additional perks when booking with those specific partners. 

If you’re loyal to a particular airline or hotel brand, a co-branded card could offer the best value.

Travel credits and concierge services that you’ll use

Premium cards often come with annual travel credits, which can help offset costs like flights, baggage fees, or rideshares. But you must remember to use these credits to get all the value you can from the card. 

For example, if your travel rewards card offers a $200 annual travel credit, a $95 airline incidental credit, and a $120 TSA PreCheck® credit, those benefits alone could outweigh a $500 annual fee. But if you’re not going to get TSA PreCheck® or use the annual travel credit, that’s lost money.

Some of the fancier travel credit cards (get ready to pay for a pricey annual fee) even offer concierge services that can assist with travel planning and booking exclusive dining reservations and experiences.

Be sure to calculate how much value you’ll actually use before deciding on a new travel credit card.

Common Mistakes Travelers Make When Choosing a Travel Card

There are a lot of great travel rewards credit cards on the market, which can make it easy to find a card quickly. But you want to make sure it’s the right card for you. 

Don’t pick a card without considering your spending habits

If you don’t have a car, you likely don’t need a credit card that earns its highest rewards on gas purchases. Or if you don’t really eat out much, you don’t need to earn extra points on restaurants.

Choose a card with a rewards-earning structure that aligns with your spending habits. 

And don’t forget that some have rotating bonus categories, so you can plan your spending more strategically. 

Don’t focus only on sign-up bonuses

As exciting as welcome bonuses can be, they are a one-time offer. 

Keep the bonus in mind when comparing similar cards, but focus more on the long-term rewards potential that you can enjoy month after month. 

Don’t ignore foreign transaction fees

Hidden fees can add up fast. If you travel internationally, look for a credit card that won’t charge you an extra 3% foreign transaction fee on your purchases abroad. 

FAQs About Travel Rewards Credit Cards

Which travel rewards card is best for beginners?

If you’re new to credit card rewards, consider signing up for a travel credit card with no annual fee. Once you learn how to use the card to your advantage, you can always upgrade to an annual fee version with more perks. 

For example, the Capital One VentureOne Rewards Credit Card doesn’t have an annual fee and offers a rewards rate of 1.25 miles for every $1 spent. You can then work towards the Capital One Venture X Rewards Credit Card later on.

Are premium travel cards worth the high annual fee?

Many premium travel cards offer so many lucrative perks that it’s easy to cancel out the cost of the annual fee. The key is learning the ins and outs of your specific card, so you can maximize your rewards. 

Should I get multiple travel rewards credit cards?

Having multiple travel rewards credit cards may make sense if you travel a lot and aren’t loyal to specific travel providers. 

But you don’t want to pay for multiple annual fees unnecessarily, so either choose fee-free cards or make it a point to use all of your travel credits and rewards with each card to outweigh the cost of the annual fees. 

TL;DR: Which Card Is Best for You?

There is no single “best” travel rewards credit card. You need to research a handful of options to see which ones you’ll qualify for (you’ll need an excellent credit score to access the best credit cards) and which ones offer the best rewards potential.

Consider how you travel and how you spend. Then, consider each card’s flexibility, earning potential, perks, and fees before applying. 

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.