People always ask how I can afford to travel so much, and I usually have a multi-part answer.
- Save money so you can travel, and take advantage of odd flight times
- Plan, Plan, Plan, Plan
- Get a Credit Card that you have use for travel rewards
I have the Chase Sapphire Preferred. So Although I love to save money, when I decide to spend, I always use my credit card. In the years that I have owned this card, I have earned two round trip flights internationally and a few in the US.
Are Travel Reward Credit Cards Worth it?
Do you travel or plan to spend a lot this year? Then the answer is yes!
Reasons why:
- Earn travel points for every purchase
- No foreign transaction fees
- Loss of luggage is covered
How Do Travel Credit Cards Work?
Choosing The Best Travel Credit Card
Look at the minimum spend per card, so that you can calculate whether you can take advantage of sign on bonuses. Many cards will give you bonus points for hitting a minimum spend in the first few months of opening your card.
Keep your eye on the annual fee of some cards. While the perks usually out way the fee, be sure that you are going to utilize your card choice efficiently.
What are my options?
I found that this page by usnews had a really good summary of some of the top card. You can find a few below.
Chase Sapphire Preferred® Card
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
- Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.
For more information about any of these cards, click here.United℠ Explorer Card
- 60k bonus miles after you spend $3,000 on purchases in the first 3 months your account is open. Plus, an additional 10k bonus miles after you spend $6,000 in the first 6 months.
- $0 introductory annual fee for the first year, then $95
- Earn 2 miles per $1 spent at restaurants, on hotel stays, and on United purchases
- Up to $100 Global Entry or TSA PreCheck™ fee credit
- 25% back on United inflight purchases
- Check your first bag for free (a savings of up to $140 per roundtrip) when you use your card to purchase your ticket
- Enjoy priority boarding privileges and visit the United Club℠ with 2 one-time passes each year for your anniversary
- Earn 2 miles per $1 spent at restaurants and eligible delivery services including GrubHub, Caviar, Seamless and DoorDashFor more information about any of these cards, click here.
Delta SkyMiles® Gold American Express Card
- Earn 35,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 3 months.
- Earn 2X Miles on Delta purchases, at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn now. Travel when you’re ready. After you spend $10,000 in purchases in a calendar year, you will receive a $100 Delta Flight Credit to inspire your next travel.
- Enjoy your first checked bag free.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a $0 introductory Annual Fee for the first year, then $99.
For more information about any of these cards, click here.
How to Compare Travel Credit Cards
No single travel rewards credit card will have everything you’re looking for. If you expect a high rewards rate, a generous sign-up bonus, great perks, and no annual fee all in one card, you might be disappointed. Each card offers value in its own way, so it’s important to compare them based on the following features to find the one that best suits your needs and preferences.
Credit Score: Most rewards credit cards require a good credit score. Knowing your score before you start comparing cards can save you time and help you focus on options you’re likely to qualify for. This way, you can also avoid unnecessary credit checks, which can temporarily lower your score.
Annual Fee: Many top travel cards come with an annual fee, usually ranging from $90 to $100. Premium cards with extensive perks may charge $450 or more. It’s important to weigh the rewards and perks you’ll get against the fee to see if it’s worth it.
There are good cards without an annual fee, but they typically offer lower rewards rates, smaller sign-up bonuses, and fewer perks.
Sign-Up Bonus: Most travel cards offer attractive sign-up bonuses if you spend a certain amount within the first few months. Make sure to read the terms carefully, as each card has its own requirements.
Foreign Transaction Fees: A good travel card won’t charge foreign transaction fees, which are extra charges on purchases made outside the U.S. These fees are usually around 3% and can cancel out any rewards you earn on a purchase. If you travel abroad, look for a card with no foreign transaction fees.
Purchase APR: Rewards cards often have higher interest rates. It’s wise to compare APRs, but ideally, you should avoid carrying a balance on these cards, as the high interest rates can lead to debt quickly.
Rewards Programs: Take the time to review the rewards programs of the cards you’re considering. Some are straightforward, while others are more complex. Comparing these programs can help you find a card that aligns with your spending habits.
Benefits and Perks: The best travel cards offer more than just rewards—they come with valuable benefits like waived baggage fees, airport lounge access, lost baggage insurance, airline fee credits, and travel cancellation insurance. Think about which perks matter most to you and choose a card that matches your needs.
PROS AND CONS
Pros: Reasons to Consider Getting a Travel Credit Card
Better Rewards for Travel: Travel credit cards often let you earn points or miles faster on travel-related purchases compared to regular rewards cards. Plus, when you use those rewards for travel, you usually get more value than if you redeemed them for things like cash back, statement credits, or gift cards.
Travel Perks: Travel credit cards come with perks that can make your trips cheaper and more enjoyable. For example, some cards offer free checked bags, so you don’t have to stress about packing light. If you prefer avoiding crowded airport terminals, certain cards provide access to airport lounges. And if you’re renting a car, a travel card with primary rental car insurance can save you money and give you peace of mind.
Sign-Up Bonuses: Many travel cards offer generous sign-up bonuses if you spend a certain amount within the first few months. These bonuses can quickly add up and help you start enjoying the benefits of your card right away.
Cons: Reasons a Travel Credit Card Might Not Be Right for You
High Annual Fees: Many travel rewards credit cards come with an annual fee, which can range from around $39 to over $500. Premium cards offer more perks, but their fees reflect that. If the card fits your travel habits, the fee might be worth it, but it’s something to consider.
Complex Rules and Restrictions: Travel credit cards can sometimes be a bit complicated. You might need to spend time planning or dealing with customer service to work around blackout dates, limited seat availability, or tricky terms and conditions. Some cards also have limits on how many points or miles you can earn, and those rewards might expire. Additionally, points or miles earned with certain airline or hotel cards may only be redeemable with specific brands or partners.
Higher Interest Rates: Travel rewards cards usually come with higher interest rates. If you tend to carry a balance from month to month, these cards may not be the best option for you, as the interest charges can eat away at the value of your rewards. In that case, a low-interest card might be a better choice to help manage debt.
- Chase Sapphire Preferred® Card: Best Travel Credit Card for Beginners.
- Capital One Venture Rewards Credit Card: Best Flat-Rate Rewards Credit Card for Travel.
- Wells Fargo Autograph Journey℠ Card: Best Travel Earnings Without a Portal.
- United Gateway℠ Card: Best feature: United Airlines travel rewards.
- Chase Freedom Unlimited®: Best feature: Flexible cash back rewards.
- Chase Sapphire Preferred® Card: Best feature: Travel rewards.
- Delta SkyMiles® Blue American Express Card: Best feature: Delta Air Lines rewards.
Travel with a debit card
A debit card is another option for managing your spending while you travel. With a debit card, you’re spending your own money, which can help you stick to your travel budget. The NAB Platinum Visa Debit card is a good alternative to a travel money card.
Broadly defined, a travel credit card is a credit card that earns rewards on your everyday purchases that can be used toward travel expenses. Rewards can take the form of points or miles, which can be redeemed for travel expenses like airfare, hotel stays, car rentals and other travel-related expenses.
A travel rewards credit card may be worth having, but it depends on how frequently you travel, whether you can afford to charge the amount required to qualify for rewards, if you earn enough in rewards value to justify any annual fees, and your ability to pay off the card balance on a monthly basis.
Miles needed for a free flight by airline
We sampled flight awards available with U.S. carriers and found that consumers need between about 5,000 and 140,000 miles to get a free one-way coach flight. Free flights in business or first class start at around 15,000 miles and climb to well over 400,000 miles one-way.
Travel cards offer several advantages that a credit card can’t compete with, including the ability to load multiple foreign currencies, secure PIN protection, locked-in exchange rates, no foreign transaction fees, online account management, and the option for emergency assistance.
Delta SkyMiles® Reserve American Express Card: $4,822 Total Benefit Value. Here’s why: The Delta SkyMiles® Reserve American Express Card tops our list of the most valuable premium rewards cards. We estimate it’s worth a mind-boggling $4,822 as of May 2022, based on Credit Karma’s Total Benefit Value.
Alaska Airlines offers the most rewarding domestic airline program, in terms of the value of miles earned. Both Alaska and Hawaiian still grant reward miles based on the number of miles flown versus flight cost.
