If you enjoy traveling, you’ll appreciate the incentives offered by travel rewards credit cards. This sort of card lets you pay for your major travel expenses, such as first-class airline and luxury hotel stays, using travel points rather than cash.
You can also find travel cards that provide you access to airport lounges, free travel insurance, or free upgrades on trip bookings. And almost all of these cards waive international transaction fees on purchases made when traveling abroad.
How do travel credit cards work?
When you use a travel credit card, you earn travel points. These incentives are known as points or miles. Credit card travel rewards can be used to pay for travel purchases. The exact method depends on the card. Travel cards with benefits that may be redeemed through particular loyalty programs are available; airline and hotel credit cards are famous examples.
Some cards allow you to redeem points at a predetermined rate, such as $0.01 per point. They can be used to pay for cash travel purchases. Some of the best travel credit cards include a variety of redemption choices.
Types of travel rewards credit cards
There are four types of travel rewards credit cards. You’ll find a description of each type below.
Airline credit cards
An airline credit card is linked to a frequent flyer program, often known as an airline loyalty program. It earns points in that program when you use the best credit card for frequent flyers. You can use your miles to book award flights. You might be able to get a ticket for 25,000 miles instead of $250. The greatest credit card for airline miles frequently comes with additional airline advantages, such as free checked luggage or airport lounge access.
READ ALSO: 8 Benefits of Travel Credit Cards You Should Know
Hotel credit cards
Hotel credit cards are linked to hotel loyalty programs. Using a hotel credit card offers you rewards points in that program. You can use your points to get free hotel stays, such as paying 30,000 points each night instead of $150. Hotel credit cards typically come with additional benefits from the hotel operator. These could include free late checkout, elite status in the hotel’s loyalty program, or an annual free night award.
Travel credit cards with fixed-rate rewards
A fixed-rate travel credit card allows you to redeem your rewards for cash travel purchases. When it comes to travel, rewards are always worth the same amount. For example, if your credit card charges $0.01 per point, 10,000 points are always worth $100 in airfare. Depending on the card, you can utilize your rewards as a bill credit for previous travel purchases, book travel through the card issuer’s travel site, or both.
Travel credit cards with transferable rewards
Transferable rewards on travel credit cards allow you to transfer your points to other loyalty programs. For example, if your travel card offers transferable rewards to Hyatt Hotels, Southwest Airlines, and United Airlines, you might transfer your points to any of those programs. You would then be able to use your points to book travel through that reward program.
Here are the best travel rewards credit cards:
- Travel card with no annual fee: Bank of America® Travel Rewards credit card
- Premium travel rewards: Capital One Venture X Rewards Credit Card
- Airport lounges: The Platinum Card® from American Express
- Unlimited rewards on travel: Wells Fargo Autograph℠ Card
- Business travel: Ink Business Preferred® Credit Card
- Travel and restaurants: Citi Premier® Card
- Unlimited rewards: Capital One Venture Rewards Credit Card
- Sign-up bonus and points transfers: Chase Sapphire Preferred® Card
- Bank of America loyalists: Bank of America® Premium Rewards® credit card
- Restaurants and U.S. supermarkets: American Express® Gold Card
- Hotel rewards and benefits: Marriott Bonvoy Boundless® Credit Card
- Airline rewards and benefits: Delta SkyMiles® Gold American Express Card
- Students: Bank of America® Travel Rewards Credit Card for Students