Best Travel Rewards Credit Cards

Travel rewards cards can help you do something that many of us spending hours daydreaming about, travel! If you ask a group of people what they would do if they won the lottery, one of the answers that you are sure to get is, “see the world”.

We all want to see new places, visit old favorites ,and just generally get a chance to vacation more. Although your chances of winning the lottery are pretty slim, it’s definitely possible for you to do more traveling if you can pay for part of it with a rewards card.

The best travel rewards credit cards cards not only allow you to earn points that you can apply towards the cost of travel – they also let you earn bonus points on travel purchases.  Which often means that the more you travel, the more free travel you can earn.

Types of Travel Rewards Credit Cards

There are many different types of travel rewards credit cards. Within each category there are some that will be better for you than others based on your specific needs from a travel rewards credit card. Before you can determine which credit card makes the most sense for you, you’ll need to gain a better understanding of the different types of travel rewards cards that are available to you.

Here is a look at the most common types of travel rewards credit cards:

Airline Rewards Cards. Some of the most popular rewards credit cards tend to be airline cards, such as Blue Sky from American Express that earn points for each plane ticket you buy, based on the number of miles that you fly.

Hotel Rewards Cards. The benefits of hotel branded credit cards, like the Starwood Preferred Guest Credit card, have long been known by travelers that prefer certain hotel chains. These cards are often used along with member programs that can get you discounts on the price of a hotel room.

Gas Rewards Cards. Gas rewards cards, such as the Discover Open Road card, are becoming more popular as the price of gas continues to rise. Any rebates or cash back a traveler can earn by using a gas credit card are helpful during times of high fuel costs.

General Travel Rewards Cards. Whether you’re going on vacation or traveling for business, using a rewards card to pay for your trip has the eventual benefit of saving you some money on travel simply by booking your flight, paying for gas, or reserving your hotel room with your credit card. 

Different card issuers have rewards programs that allow you to mix and match travel rewards.  For example Citibank has the ThankYou program with cards like Citi ThankYou Premier and Chase has the Ultimate Rewards program with cards like Chase Sapphire.  American Express is also known for their Membership rewards program that lets you earn points across their family of charge cards, that can be used used for rental cars, hotel, or flights.

There are also some cards, such as the Starwood Preferred I already mentioned, that let you earn points for one type of travel like hotels, but also have a decent program for letting you transfer your points to partner companies in other travel industries, like airlines.

Comparing Travel Cards

Once you have figured out which type of rewards credit cards is best for you, you’ll still need to determine which card in that category is the best one. For example, you may know that you want an airline rewards card that will provide you with free flight miles for your shopping but you still need to decide which specific airline rewards card will be benefit you most. This means that you need to do some research into each card.

Some of the factors to consider when deciding on a travel rewards credit card include:

1) The way that points are earned. For example, do you earn one mile per dollar spent on the card or can you earn more than that? Some cards, such as the Discover Open Road card, offer higher rewards rates after a certain amount is spent annually on the card.

2) If there are bonus points available. For example, Escape by Discover allows you to earn up to 25,000 bonus points in the first two years of membership if you spend $1000 per month on the card.

3) Terms of redeeming rewards, especially if there are blackout dates or expiration dates on your rewards.

4) Whether the card is branded (to a specific hotel like the Marriott Rewards card or airline like the Continental OnePass Plus), which may affect how frequently you use it.

5) Whether your rewards can be redeemed only for travel purchases or for other items (like cash back and gift cards) as well.

6) What type of travel insurance is available on the card.

7) Additional travel perks card membership, such as access to airport lounges.

Rates and Fees

You’ll also want to make sure that you consider the costs of the card that could eat into the rewards you earn, such as:

• The APR
• Annual fee
• Late fees
• Balance transfer fees

Hopefully, this gives you a little help when reviewing and comparing the benefits and features of the top travel credit cards.  Check out the cards listed below to see if any of them can save you some money or earn you some points on your next trip.

Related articles:

• Best Gas Rewards Credit Cards
• Best Cash Back Rewards Credit Cards
• PenFed Rewards Credit Cards