How to Choose the Best Travel Rewards Card
Choosing the right travel rewards credit card can make a significant difference in how you earn points and redeem them for travel perks.
Whether you’re a frequent traveler or someone who only takes a few trips each year, selecting the best card for your needs requires careful consideration. Here’s a quick breakdown to help you make an informed decision.
Assess Your Travel Habits
Before you choose a travel rewards card, consider how often you travel and your preferred spending categories. If you travel often by air, look for cards that offer high rewards on flight purchases. If you dine out frequently, find cards that reward dining and other related expenses. Knowing where you spend the most can help guide your decision.
Key Consideration: Are you a frequent flyer or do you travel by other means (road trips, hotel stays, etc.)?
Check the Earning Rates
The best travel rewards cards offer higher earning rates on travel-related purchases. For example, some cards provide 3x points on flights, while others might offer 2x points on dining and restaurants. Choose a card that gives you more points for the types of purchases you make the most.
Key Consideration: What categories do you spend the most in? Look for a card that rewards those categories.
Understand the Redemption Options
Some travel rewards cards offer more flexible redemption options than others. Cards like the Chase Sapphire Preferred® allow you to redeem points through their travel portal or transfer them to partner airlines and hotels, giving you a variety of options. Others might offer simpler, but less flexible, redemption options.
Key Consideration: How flexible do you want your points to be? Check if the card allows transferring points to airline or hotel partners.
Look for Travel Perks
In addition to earning points, many travel cards come with valuable perks, such as access to airport lounges, travel insurance, or TSA PreCheck® credits. These extra benefits can enhance your travel experience and save you money in the long run.
Key Consideration: Are you looking for additional perks like lounge access, travel insurance, or Global Entry/TSA PreCheck®?
Watch for Fees
While many travel rewards cards offer excellent benefits, they may come with annual fees. It’s important to weigh these fees against the benefits you’ll receive. Look for cards that offer enough value to justify the annual fee, especially if you’re a frequent traveler. Some cards also charge foreign transaction fees, so ensure the card you choose doesn’t charge these fees if you plan to travel abroad.
Key Consideration: Does the card charge annual or foreign transaction fees? Make sure the benefits outweigh the cost.
Check for Sign-Up Bonuses
Many travel rewards cards offer attractive sign-up bonuses after meeting a certain spending requirement within the first few months. These bonuses can provide a significant head start in earning points for your next trip. Be sure to evaluate the spending requirement and whether it fits within your budget.
Key Consideration: Does the card offer a sign-up bonus? How much spending do you need to do to qualify?