Choosing the Best Travel Credit Card

On February 16, 2025 By newsroom Topic: Credit Cards

Key Considerations

Determine Your Travel Habits:
- Frequent flyers with loyalty to a single airline might benefit from airline-specific cards.
- Occasional travelers or those flying multiple airlines should consider bank travel cards.

Understand Annual Fees:
- Many cards waive the fee for the first year, but fees can range from $89 to $450+.
- Perks like free checked bags, airport lounge access, or expedited security may offset fees.

Airline Cards vs. Bank Cards

Airline-Specific Cards

Pros:
Earn miles with a particular carrier.
Perks like priority boarding, free checked bags, and companion tickets.
Great for combining earned miles with frequent flyer program rewards.
Cons:
Limited flexibility—can only redeem with the airline or its partners.
Points may expire and are subject to blackout dates and capacity controls.
Higher fees and APRs.

Bank Travel Cards

Pros:
Points can be redeemed on multiple airlines, often without blackout dates.
Lower fees and APRs compared to airline cards.
Flexibility in booking travel through any platform or travel agent.
Cons:
Fewer airline-specific perks like free baggage or priority boarding.
Redemption processes can vary; some cards require booking through their platform.

Tips for Maximizing Rewards

Sign-Up Bonuses:
- Look for cards offering 50,000+ points as a bonus, often with a minimum spend ($750–$3,000 in the first 3 months).
- Wait for promotions like 100,000-point offers for higher rewards.

Strategic Spending:
- Use your card for everyday expenses to rack up points faster.
- Focus spending on categories that earn bonus points (e.g., dining, travel).

Negotiate Offers:
- Call card issuers to request better terms, like waived fees or higher bonus points.
- Ask for perks tailored to your spending habits (e.g., double points on groceries or fuel).

Monitor Points:
- Redeem points regularly to avoid expiration.
- Keep an eye on airline conversion rates—25,000 points may not always equal a round-trip ticket.

Watch Out for Surcharges

Excessive Fees: Some cards tack on high taxes and fees to “free” reward flights.
Example: British Airways Visa charges up to $650 in fees for a reward flight from NYC to London.
Hidden Costs: Booking on partner airlines can avoid surcharges but may require phone reservations (often costing $15–$25).

When to Consider Cash-Back Cards

Cash Is Versatile: Earn 1–2% on all purchases, usable for flights or anything else.
Decreasing Value of Miles: Airline mile values are declining, while flight costs in points are rising.

Best Card by Traveler Type

Loyal Airline Flyers:
- Choose your airline’s co-branded card (e.g., Delta SkyMiles, United MileagePlus).
- Look for perks like free checked bags or priority boarding.

Frequent Multi-Airline Flyers:
- Opt for a flexible bank card like Chase Sapphire Preferred or Capital One Venture Rewards.

Occasional Travelers:
- A no-fee or low-fee bank card like the Citi Double Cash might be better for converting rewards into travel funds.

Pro Tip: Compare offers from airlines, issuers, and third-party trackers like Airfarewatchdog to get the best deals. Maximize rewards by combining miles from flights with credit card points!