are travel rewards worth it

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How Travel Rewards Credit Cards Work

• Who Benefits Most?
• The Cost of Balances
• The Cost of Bonuses
• Limitations

The Bottom Line

• Credit Cards
• Tips & Tricks

Are Travel Rewards Credit Cards Worth It?

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

After a period of time that saw many travelers limit or cancel their travel plans, Americans are hitting the road again. According to the U.S. Travel Association, as of October 2023, 54% of Americans said that taking time off to travel was more important than ever.

If you’re a traveler, using a travel rewards credit card could make sense if you’re interested in earning points or miles toward travel. The best travel credit cards can also offer additional benefits beyond travel miles. Still, are the rewards worth more than what you may pay in card fees and interest on monthly balances? Is a travel rewards card always worth having? Read on to find out.

Key Takeaways

• Travel rewards cards are aimed at people who want rewards that can defray travel-related costs.
• When choosing a travel rewards card, weigh the value of rewards earned against the costs of an annual fee and interest charged on a card balance.
• Travel rewards credit cards can help you earn miles or points that you can then redeem for free flights, hotels, and other travel expenses.
• Some travel rewards credit cards offer additional benefits and perks, including airport lounge access, introductory points or miles bonuses, and free checked bags.
• A travel rewards credit card could help you achieve frequent flyer or frequent guest program elite status faster than by using rewards from flights and stays alone.

A travel credit card focuses on the accumulation of points or miles that then can be redeemed for travel-related awards. Such awards can include airline flights, hotel stays, car rentals, and more. Airline rewards credit cards typically provide you with miles for the purchases you make using the card, while general travel rewards credit cards tend to give you points. Whether you bank miles or points , cardholders should be able to use them to defray the cost of their travel.

Each card has specific terms for earning and redeeming points or miles. For example, depending on the travel card, you may be able to earn more than a one-to-one return on dollars spent using the card. You might be able to get three times (or more) the dollars spent when you use the card to pay for a flight as compared with the one mile (or point) for every $1 spent on purchases unrelated to travel, such as groceries. This earning rate (and other terms) can vary among cards, so keep that in mind when making comparisons.

Who Benefits Most From Travel Rewards Cards?

A travel rewards card is best for people who travel frequently. Those who fit this category fly and stay in hotels throughout the year. They may be better able than others to book on slow travel days and during off seasons to maximize their rewards. Their volume of travel also provides more opportunities to make the most of their rewards and extras than are available to infrequent travelers. Others who can benefit from a travel rewards credit card include:

• Business owners: If they travel for work regularly and have a lot of expenses while doing so, they will benefit by using the card often.
• Consumers who pay off their balances every month: This is a good thing to do with any credit card, but it’s especially important with travel cards, as, like any rewards card, they usually have higher interest rates than other credit cards.

The Cost of Monthly Balances

It stands to reason that the more money you charge on a travel rewards card, the more points or miles you’ll get for those purchases. If you pay off your credit card balance monthly, thereby avoiding interest charges, your rewards can be worth more than the cost of having the card, which should be just the annual fee. However, if you don't pay off your balance every month, the interest charges along with the annual fee may end up outweighing the value of the card’s benefits, especially because interest charges compound when you carry a balance from month to month.

How can you ensure that you’ll pay the full bill each month? Some consumers limit their spending to one credit card, making it easier to track against your budget and pay off monthly. Isolating spending can also make it easier to rack up the amount needed to get significant points or miles.

Travel credit cards can also be a good financial deal for business owners and the employees who have company cards issued in their names on the account. These cards can allow them to leverage business travel and operational expenses to earn rewards for the business . Of course, it’s the responsibility of the business’ accounting department to pay off the monthly balance to avoid interest charges, and the business owners will set the rules on how rewards can be used.

Many travel rewards card issuers offer online calculators that allow you to estimate the amount of miles or points you can earn each year, based on your typical spending habits. Crunching the numbers can help you decide if the card is worth its cost.

The Cost of Initial Bonuses

Credit card issuers make travel rewards sound like they are free, but they are not. The amount of money you spend to earn rewards, including money related to initial bonus offers, can be a lot, so consider those amounts when trying to determine whether or not a card is worth its cost. In addition, in some cases rewards redeemed for cash can end up being taxed by the Internal Revenue Service (IRS).

Let’s do a cost-benefit analysis. One rewards card might offer 40,000 points for spending $3,000 in 90 days. Another might offer the same amount of points for spending $1,000. The lower spending requirement might sound like a better deal, but higher fees and blackout periods associated with the second card could potentially lower its value. Moreover, the spending required for those appealingly hefty bonus points might not fit your budget, and going over budget could cost you a lot in interest charges if you can’t pay off your card. It’s important to measure all features and costs against your individual spending and travel patterns before deciding which card, if any, is worth the cost.

Also, consider whether you’d prefer to earn bonuses in the form of miles or points. If you’re loyal to a particular airline brand, for instance, it could make sense to choose a co-branded airline rewards card that offers a sizable miles bonus.

Even if your cardmember agreement states that there are no blackout dates, there may be other restrictions or limitations on how you can redeem travel points or miles. Read the terms carefully before signing up.

Travel Rewards Card Limitations

Travel rewards cards have terms and conditions just like any other credit card. It’s important to understand how those work when weighing whether travel rewards cards are right for you.

Say you get a travel rewards credit card and plan to use it all year in order to rack up points for a vacation. Be aware that airlines and hotels may limit the availability of flights and accommodations for cardholders who wish to redeem travel rewards.

For example, there may be travel blackout dates or limits on seat availability that prevent you from booking rewards travel. Peak days and seasons vary among travel brands, so a travel rewards card may not be worth having if you cannot use the rewards points or miles when you need or want to use them.

If you’re interested in a general travel rewards card, check to see if you can redeem rewards by transferring them to partner airline or hotel loyalty programs on a one-to-one basis.

What Is a Good Way to Choose a Travel Rewards Credit Card?

An important first step is to see how your rewards goals fit with the terms and conditions of each card that you consider. The ability of a card to meet your goals can help you narrow the field. It can also provide insight into whether a card is worth the cost of any annual fee. You’ll also want to view your particular spending patterns in the light of how a card rewards you to ensure a high-value fit.

How Do I Get the Most From a Travel Rewards Credit Card?

First, make sure that you understand the best way to utilize credit. Next, check that the card’s terms for earning and redeeming rewards suit your spending patterns and travel desires. Finally, maximize your spending in the categories offering the greatest rewards. Be sure to get your sign-up bonus (though only if you can afford the spending requirement). Take advantage of all the perks to which you’re entitled and ask about getting the annual fee waived (even if just for the first year).

What Should I Look for in a Travel Rewards Card?

To ensure that a travel rewards card is worth having, try to find one with no annual fee, a greater than one-to-one earning potential on purchases, a low APR and/or 0% introductory APR, an attractive initial bonus offer for points, no foreign transaction fee, and a variety of added perks, such as airline lounge access and travel credit.

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. The cards typically benefit people who travel often for work or leisure and can afford to charge enough to earn significant points or miles through one-time bonuses and ongoing purchases.

Be sure to pay attention to the APR and fees. You can also compare bonus incentives from different issuers to determine whether travel rewards credit cards are worth it based on your individual spending patterns.

U.S. Travel Association. " Q3 Insights Reveal Holiday Travel Expectations and the Economic Cost of Not Addressing Traveler Pain Points ."

Heritage Bank. " Rewards Showdown: Interest Checking vs. Rewards Credit Cards ."

Consumer Financial Protection Bureau. " Credit Cards Key Terms ."

American Express. " Discover How Monthly Routine Expenses Can Take You Further ."

Internal Revenue Service. “ What is Taxable and Nontaxable Income? ”

American Express. " How to Maximize Your Travel Points Credit Cards ."

• Rewards Credit Card: What It Is, How It Works, Choosing One 1 of 9
• Can I Pay My Mortgage with a Credit Card? 2 of 9
• Are Credit Card Rewards Considered Taxable Income? 3 of 9
• What Is Cash Back? Hint: It's Not Free Money 4 of 9
• How Is Cashback Profitable for Credit Card Companies? 5 of 9
• Cash Back vs. Airline Miles: What's the Difference? 6 of 9
• Are Travel Rewards Credit Cards Worth It? 7 of 9
• 7 Top Ways to Earn Airline Miles 8 of 9
• 4 Credit Cards That Will Get You First-Class Flights 9 of 9

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Are travel credit cards worth it?

It’s no secret that travel credit cards carry some of the most enticing rewards offers available today. Maybe you’ve already seen the potential value yourself — a friend who used a 100,000-point sign-up bonus to fund their international vacation or that targeted card offer in your mailbox boasting multiple free hotel nights each year.

But for many people, travel rewards can also feel overwhelming. With complex rewards structures, high annual fees , and other restrictions, it can be difficult to jump into the world of travel rewards and feel confident you’re making the most of your spending.

Before you open a travel credit card , use this guide to help decide whether travel rewards are right for your spending and lifestyle — and what to look for when comparing new card options.

What are travel credit cards?

Travel credit cards work by offering rewards on your spending that help you save on future travel expenses. When you use a travel card to make a purchase, you’ll earn points or miles you can redeem toward future travel.

These cards often have valuable sign-up bonuses but can charge higher annual fees than other rewards credit cards . They’re also less likely than cash-back credit cards to offer an introductory 0% APR and carry very high ongoing APRs.

Travel cards cover a range of added benefits, including no foreign transaction fees and protections like travel insurance or emergency assistance.

Here are a few more travel credit card features to consider before applying:

Will you earn the highest rewards on travel or everyday spending?

Some travel cards offer the greatest rewards on travel spending. For example, The Platinum Card® from American Express allows cardholders to earn big rewards on certain flight and hotel purchases but only offers 1x points per dollar on everything else. This and similar cards may be best for very frequent travelers who rack up high balances each month on airfare, hotel stays, rental cars, and other travel expenses.

Other travel credit cards offer their best rewards rates on everyday spending . Capital One Venture X Rewards Credit Card earns a flat rewards rate on every purchase you make, and you’ll earn your highest rewards rate on dining out and at U.S. supermarkets with the American Express® Gold Card . Cards like these are likely the better option if you only travel a few times per year. You’ll consistently earn rewards at home on grocery purchases , dining out, or fueling at the gas station — and can then put those rewards toward your travel.

Do you want flexible travel rewards or would you prefer to earn points or miles under a specific loyalty program?

Finding the right travel credit card isn’t only about how you earn rewards but also how you use them.

Many travel credit cards earn flexible points and miles under an issuer’s rewards program , such as Capital One Travel, American Express Membership Rewards, or Chase Ultimate Rewards. You can redeem the rewards you earn from these programs for:

Travel booked through the issuer’s travel portal

Statement credits to your card account

Rewards you can transfer to partner airline and hotel programs

A general travel card can be useful if you want the most flexibility in how you redeem your rewards.

You can also choose co-branded travel rewards credit cards . Airline and hotel credit cards earn rewards under the specific airline or hotel loyalty program — Delta SkyMiles, Southwest Rapid Rewards points, Marriott Bonvoy points, and more. Most often, you’ll redeem the rewards you earn with these cards for future flights or hotel stays with the brand.

Co-branded cards can be useful if you’re a loyal customer of an airline or hotel. They offer benefits tailored to those brands (free checked bags or free night awards, for example) and often help you reach elite status more quickly.

What type of annual fee (if any) makes sense for you?

Despite a reputation for steep annual fees, there are plenty of great travel cards with annual fees under $100 — or even no annual fee.

Higher annual fee cards do typically come with the biggest list of benefits. These benefits can range from airport lounge access to annual credits toward travel spending, upgrades, complimentary loyalty program status, annual discounts with specific partner brands, and more.

While they can definitely be valuable, high-fee travel card benefits are usually tailored to make your travel experience more efficient or enjoyable. If you don’t travel often, you may not get the full value.

You should also make sure these benefits offer savings on purchases you would have made anyway. If you’re spending more than you otherwise would just to take advantage of a credit or perk, that does little to make the annual fee cost actually worth it.

Lower or no annual fee travel cards are typically a little more sparse when it comes to benefits — though they may come with some partner benefits or smaller annual credits. With these cards, the biggest value will come from the rewards you earn. Before you apply, make sure you’re able to maximize rewards categories and make the most of your spending.

Who are travel cards best for?

It’s probably no surprise that travel credit cards are best for people who prioritize travel on their calendars and in their budgets. In most cases, you’ll get the best rewards value from these cards if you can redeem the points and miles you earn for future travel expenses.

It can also help to maximize your travel card if you’re willing to do a bit of strategizing and research into how to best use your benefits and rewards. While cash-back credit cards are great for direct percentage earnings on every purchase, travel rewards can have different redemption values. It can take some time to find the best way to get the very best value from what your card has to offer.

Who should avoid travel credit cards

While you don’t need to be a world traveler to benefit from a travel card, you should travel at least occasionally.

Travel cards may not be ideal if you’re trying to build credit or have a history of overspending. For one, they can be difficult to qualify for if you don’t already have great credit. But they’re also often packed with perks and benefits that can encourage you to spend more than you otherwise would if you’re not careful.

Before applying for any new credit card — and especially a new travel card — make sure the rewards and benefits you’ll get align with how you already spend your money. Otherwise, you could risk taking on debt balances with high interest rates and negating any value you would otherwise gain from your card.

Travel credit card pros

Rewards for future travel: If you’re looking to save on an upcoming vacation, a travel credit card is a great place to start. You can redeem the rewards you earn on your spending today for flights, hotels, and more travel expenses in the future. As long as you find the rewards program that best fits your travel plans and budget, your travel card can help stretch your dollars further.

Added travel benefits: In addition to rewards, travel perks and benefits offer useful savings when you’re away. Many travel cards offer annual travel credits, savings on checked bags or other airline fee costs, experience credits for your hotel stays, and more. Before you book, make sure you read your card agreement and understand exactly what added benefits are available to you.

Great welcome bonuses: Travel cards carry some of the highest welcome bonus offers you’ll find from any credit card today. While points and miles value vary, sign-up bonuses range upwards of 50,000 and even up to 100,000 points, after you meet a designated spending threshold. Make sure that required spending amount is within your budget so you can take advantage of the points boost as a new cardholder.

Travel credit card cons

Non-travel redemption value: While travel cards offer major savings on travel expenses, they may not be best for maximizing other redemptions. Some travel cards offer less than 1 cent per point value when you choose non-travel redemptions, such as statement credits, cash back, gift cards, and more. If these are the redemptions you prefer, you’ll probably want to look at other rewards or cash-back credit cards .

High annual fees: There are some great travel cards with low or no annual fees, but you will pay a premium price for many of the highest-earning cards. For some, a high annual fee may be worth the price thanks to the value you’ll get back in rewards and benefits. But always make sure to compare your past spending to what you expect to get from the card before you apply — it’s not worth it to pay more for a card than you can earn.

Credit score requirements: To get approved for a travel credit card, you’re likely going to need a great credit score. A preapproval or prequalification offer from the credit card issuer can help you learn your chances of approval without a hard credit inquiry. But if you’re still working to build your credit score, consider credit card options for building credit; some credit-building cards still earn rewards you can use to save on your spending.

Travel credit cards to consider

For most people, a general travel credit card offers a valuable combination of flexible rewards and benefits that can help you save no matter what your future travel plans are. Below are some of our picks for the best travel credit cards to make the most of your travel today:

Chase Sapphire Preferred® Card : Good for travel rewards beginners

Chase Sapphire Preferred has a $95 annual fee and welcome offer of 75,000 bonus points after you spend $4,000 within the first three months. Thanks to the card’s 25% redemption boost (or 1.25 cents per point) when you use your points for travel through Chase Travel, you can get more than $900 in value with the bonus alone.

Each year, you’ll get a $50 annual statement credit for hotel stays booked through Chase Travel. For ongoing rewards, Chase Sapphire Preferred earns 5x points on travel purchased through Chase Travel (excluding hotel stays that count toward the credit), 3x points on dining, 3x points on online grocery purchases, 3x points on select streaming services, 2x points on all other travel, and 1x on everything else.

Capital One Venture Rewards Credit Card : Good for simplicity

There are few travel credit cards easier to use than the Capital One Venture . For a $95 annual fee, you’ll earn a flat 2x miles on every purchase, plus a boosted 5x miles when you book hotels and car rentals through Capital One Travel. The card also has a welcome offer worth 75,000 bonus miles when you spend $4,000 within the first three months.

Though the Venture Rewards Card is lighter on added benefits than some other travel cards, you will get a fee credit for TSA PreCheck or Global Entry and a $50 experience credit (plus other benefits) when you book the Lifestyle Collection hotels through Capital One Travel. And keeping with this card’s simplicity, you can easily use your miles for travel expenses, either by booking through Capital One Travel or using them to reimburse travel purchases on your card statement.

Chase Sapphire Reserve® : Good for annual credits

Chase Sapphire Reserve charges a steep $550 annual fee, but it also has plenty of travel value. You’ll get an annual travel credit for the first $300 in eligible travel purchases you make each year, plus airport lounge access and other benefits.

You can also earn the following rewards (for travel categories, rewards only apply after you max out your annual travel credit): 10x points on eligible hotels and rental cars through Chase Travel, 10x on Chase Dining, 5x points on flights through Chase Travel, 3x on other travel purchases, 3x on dining, and 1x on other spending.

Like the Chase Sapphire Preferred, the other big benefit of a Chase Sapphire Reserve is the boosted redemption value you’ll get when you use your points to book travel through Chase Travel. This card has a 50% points boost — meaning you’ll get a value of 1.5 cents per point on eligible travel redemptions. For example, you can redeem the 75,000-point welcome offer (after spending $4,000 in the first three months) for $1,125 in travel through Chase Travel.

American Express® Gold Card : Good for maximizing regular spending

Though it has a $250 annual fee ( see rates and fees ) the Amex Gold Card makes it easy to justify the cost for most regular spenders. Ongoing rewards include a mix of travel and everyday spending : 4x points at restaurants worldwide, 4x points at U.S. supermarkets (up to $25,000 spent per year), 3x points on flights booked directly with airlines or through Amex Travel, and 1x points on all other purchases.

You can also earn a 60,000 points welcome bonus after spending $6,000 within the first six months. If you redeem those Amex Gold points for flights through Amex Travel, you can get up to $600 in airfare from the welcome offer alone. And to help offset the annual fee year after year, you can get up to $120 in annual Uber Cash ($10 per month) and up to $120 in dining statement credits with eligible partners ($10 monthly; with enrollment).

Co-branded travel cards

In addition to the flexible travel cards above, here are a few of our favorite co-branded hotel and airline credit cards:

Hilton Honors American Express Card

Wyndham Rewards Earner® Plus Card

Marriott Bonvoy Boundless® Credit Card

Delta SkyMiles® Platinum American Express Card

JetBlue Plus Card

Southwest Rapid Rewards® Plus Credit Card

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.

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15 Best Travel Credit Cards of June 2024

ALSO CONSIDER: Best credit cards of 2024 || Best rewards credit cards || Best airline credit cards || Best hotel credit cards

The best travel credit card is one that brings your next trip a little closer every time you use it. Purchases earn points or miles you can use to pay for travel. If you're loyal to a specific airline or hotel chain, consider one of that company's branded travel credit cards. Otherwise, check out our picks for general-purpose travel cards that give you flexible travel rewards without the restrictions and blackout dates of branded cards.

250+ credit cards reviewed and rated by our team of experts

80+ years of combined experience covering credit cards and personal finance

100+ categories of best credit card selections ( See our top picks )

Objective comprehensive ratings rubrics ( Methodology )

NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity .

Show summary

NerdWallet's Best Travel Credit Cards of June 2024

Chase Sapphire Preferred® Card : Best for Max flexibility + big bonus

Capital One Venture Rewards Credit Card : Best for Flat-rate rewards

Capital One Venture X Rewards Credit Card : Best for Travel portal benefits

Chase Freedom Unlimited® : Best for Cash back for travel bookings

American Express® Gold Card : Best for Big rewards on everyday spending

The Platinum Card® from American Express : Best for Luxury travel perks

Ink Business Preferred® Credit Card : Best for Business travelers

Citi Strata Premier℠ Card : Best for Triple points on multiple categories

Bank of America® Travel Rewards credit card : Best for Flat-rate rewards + no annual fee

Chase Sapphire Reserve® : Best for Bonus rewards + high-end perks

World of Hyatt Credit Card : Best for Best hotel card

Bilt World Elite Mastercard® Credit Card : Best for Travel rewards for rent payments

United℠ Explorer Card : Best for Best airline card

PenFed Pathfinder® Rewards Visa Signature® Card : Best for Credit union benefits

Wells Fargo Autograph Journey℠ Card : Best for Booking directly with airlines/hotels

Best Travel Credit Cards

Find the right credit card for you..

Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.

Max flexibility + big bonus

Flat-rate rewards, travel portal benefits, cash back for travel bookings, big rewards on everyday spending, luxury travel perks, business travelers, triple points on multiple categories, flat-rate rewards + no annual fee, bonus rewards + high-end perks, best hotel card, travel rewards for rent payments, best airline card, booking directly with airlines/hotels, credit union benefits, full list of editorial picks: best travel credit cards.

Before applying, confirm details on the issuer’s website.

Capital One Venture Rewards Credit Card

Our pick for: Flat-rate rewards

The Capital One Venture Rewards Credit Card is probably the best-known general-purpose travel credit card, thanks to its ubiquitous advertising. You earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel and 2 miles per dollar on all other purchases. Miles can be redeemed at a value of 1 cent apiece for any travel purchase, without the blackout dates and other restrictions of branded hotel and airline cards. The card offers a great sign-up bonus and other worthwhile perks ( see rates and fees ). Read our review.

Bank of America® Travel Rewards credit card

Our pick for: Flat-rate rewards + no annual fee

One of the best no-annual-fee travel cards available, the Bank of America® Travel Rewards credit card gives you a solid rewards rate on every purchase, with points that can be redeemed for any travel purchase, without the restrictions of branded airline and hotel cards. Bank of America® has an expansive definition of "travel," too, giving you additional flexibility in how you use your rewards. Read our review.

Chase Sapphire Reserve®

Our pick for: Bonus rewards + high-end perks

The high annual fee on the Chase Sapphire Reserve® gives many potential applicants pause, but frequent travelers should be able to wring enough value out of this card to more than make up for the cost. Cardholders get bonus rewards (up to 10X) on dining and travel, a fat bonus offer, annual travel credits, airport lounge access, and a 50% boost in point value when redeeming points for travel booked through Chase. Points can also be transferred to about a dozen airline and hotel partners. Read our review. 

Chase Sapphire Preferred® Card

Our pick for: Max flexibility + big bonus

For a reasonable annual fee, the Chase Sapphire Preferred® Card earns bonus rewards (up to 5X) on travel, dining, select streaming services, and select online grocery purchases. Points are worth 25% more when you redeem them for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. The sign-up bonus is stellar, too. Read our review. 

Wells Fargo Autograph Journey℠ Card

Our pick for: Booking directly with airlines/hotels

The Wells Fargo Autograph Journey℠ Card stands out among general-purpose travel cards because it pays its highest rewards rates on travel bookings made directly with airlines and hotels, rather than requiring you to go through the issuer's travel agency, where prices might not be competitive. The points are flexible, you get a good bonus offer, and the card comes with a few other nice perks. Read our review.

Wells Fargo Autograph℠ Card

Our pick for: Bonus rewards + no annual fee

The Wells Fargo Autograph℠ Card offers so much value, it's hard to believe there's no annual fee. Start with a great bonus offer, then earn extra rewards in a host of common spending categories — restaurants, gas stations, transit, travel, streaming and more. Read our review.

Citi Strata Premier℠ Card

Our pick for: Triple points on everyday categories

The Citi Strata Premier℠ Card earns bonus points on select travel, supermarkets, dining, gas stations and EV stations. There's a solid sign-up bonus as well. Read our review.

U.S. Bank Altitude® Connect Visa Signature® Card

Our pick for: Road trips

The U.S. Bank Altitude® Connect Visa Signature® Card is one of the most generous cards on the market if you're taking to the skies or the road, thanks to the quadruple points it earns on travel and purchases at gas stations and EV charging stations. It's also a solid card for everyday expenses like groceries, dining and streaming, and it comes with ongoing credits that can offset its annual fee:  $0 intro for the first year, then $95 .  Read our review .

Capital One Venture X Rewards Credit Card

Our pick for: Travel portal benefits

Capital One's premium travel credit card can deliver terrific benefits — provided you're willing to do your travel spending through the issuer's online booking portal. That's where you'll earn the highest rewards rates plus credits that can make back the bulk of your annual fee ( see rates and fees ). Read our review.

Chase Freedom Unlimited®

Our pick for: Cash back for travel bookings

The Chase Freedom Unlimited® was already a fine card when it offered 1.5% cash back on all purchases. Now it's even better, with bonus rewards on travel booked through Chase, as well as at restaurants and drugstores. On top of all that, new cardholders get a 0% introductory APR period and the opportunity to earn a sweet bonus. Read our review.

The Platinum Card® from American Express

Our pick for: Luxury travel perks

The Platinum Card® from American Express comes with a hefty annual fee, but travelers who like to go in style (and aren't afraid to pay for comfort) can more than get their money's worth. Enjoy extensive airport lounge access, hundreds of dollars a year in travel and shopping credits, hotel benefits and more. That's not even getting into the high rewards rate on eligible travel purchases and the rich welcome offer for new cardholders. Read our review.

American Express® Gold Card

Our pick for: Big rewards on everyday spending

The American Express® Gold Card can earn you a pile of points from everyday spending, with generous rewards at U.S. supermarkets, at restaurants and on certain flights booked through amextravel.com. Other benefits include hundreds of dollars a year in available dining and travel credits and a solid welcome offer for new cardholders. There's an annual fee, though, and a pretty substantial one, so it's not for smaller spenders. Read our review.

Bilt World Elite Mastercard® Credit Card

Our pick for: Travel rewards on rent payments

The Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter. You also get bonus points on dining and travel when you make at least five transactions on the card each statement period, and redemption options include point transfers to partner hotel and loyalty programs. Read our review.

PenFed Pathfinder® Rewards Visa Signature® Card

Our pick for: Credit union rewards

With premium perks for a $95 annual fee (which can be waived in some cases), jet-setters will get a lot of value from the PenFed Pathfinder® Rewards Visa Signature® Card . It also offers a generous rewards rate on travel purchases and a decent flat rate on everything else. Plus, you’ll get travel credits and a Priority Pass membership that offers airport lounge access for $32 per visit. Read our review.

United℠ Explorer Card

Our pick for: B est airline card

The United℠ Explorer Card earns bonus rewards not only on spending with United Airlines but also at restaurants and on eligible hotel stays. And the perks are outstanding for a basic airline card — a free checked bag, priority boarding, lounge passes and more. Read our review.

» Not a United frequent flyer? See our best airline cards for other options

World of Hyatt Credit Card

Our pick for: Best hotel card

Hyatt isn't as big as its competitors, but World of Hyatt Credit Card is worth a look for anyone who spends a lot of time on the road. You can earn a lot of points even on non-Hyatt spending, and those points have a high value compared with rival programs. There's a great sign-up bonus, free nights, automatic elite status and more. Read our review.

» Not a Hyatt customer? See our best hotel cards for other options.

Ink Business Preferred® Credit Card

Our pick for: Business travelers

The Ink Business Preferred® Credit Card starts you off with one of the biggest sign-up bonuses of any credit card anywhere: Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Travel℠. You also get bonus rewards on travel expenses and common business spending categories, like advertising, shipping and internet, cable and phone service. Points are worth 25% more when redeemed for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. Learn more and apply .

Are you in Canada?

See NerdWallet's best travel cards for Canada.

OTHER RESOURCES

How travel rewards work.

Modern-day adventurers and once-a-year vacationers alike love the idea of earning rewards toward their next big trip. According to a NerdWallet study , 68% of American adults say they have a credit card that earns travel rewards.

With a travel rewards credit card, you earn points or miles every time you use the card, but you can often earn more points per dollar in select categories. Some top travel credit cards, such as the Chase Sapphire Reserve® , offer bonus points on any travel spending, while the Marriott Bonvoy Boundless® Credit Card grants bonus points when you use the card at Marriott hotels, grocery stores, restaurants or gas stations.

Not all points and miles earned on travel rewards credit cards are the same:

General-purpose travel credit cards — including the Chase Sapphire Preferred® Card , the American Express® Gold Card and the Capital One Venture Rewards Credit Card — give you rewards that can be used like cash to pay for travel or that can be exchanged for points in airline or hotel loyalty programs. With their flexible rewards, general-purpose options are usually the best travel credit cards for those who don't stick to a single airline or hotel chain.

Airline- and hotel-specific cards — such as the United℠ Explorer Card and the Hilton Honors American Express Card — give points and miles that can be used only with the brand on the card. (Although it's possible in some cases to transfer hotel points to airlines, we recommend against it because you get a poor value.) These so-called co-branded cards are usually the best travel credit cards for those who always fly one particular airline or stay with one hotel group.

How do we value points and miles? With the rewards earned on general travel cards, it's simple: They have a fixed value, usually between 1 and 1.5 cents per point, and you can spend them like cash. With airline miles and hotel points, finding the true value is more difficult. How much value you get depends on how you redeem them.

To better understand what miles are worth, NerdWallet researched the cash prices and reward-redemption values for hundreds of flights. Our results:

Keep in mind that the airline values are based on main cabin economy tickets and exclude premium cabin redemptions. See our valuations page for business class valuations and details about our methodology.

Our valuations are different from many others you may find. That’s because we looked at the average value of a point based on reasonable price searches that anyone can perform, not a maximized value that only travel rewards experts can expect to reach.

You should therefore use these values as a baseline for your own redemptions. If you can redeem your points for the values listed on our valuations page, you are doing well. Of course, if you are able to get higher value out of your miles, that’s even better.

HOW TO CHOOSE A TRAVEL CREDIT CARD

There are scores of travel rewards cards to choose from. The best travel credit card for you has as much to do with you as with the card. How often you travel, how much flexibility you want, how much you value airline or hotel perks — these are all things to take into account when deciding on a travel card. Our article on how to choose a travel credit card recommends that you prioritize:

Rewards you will actually use (points and miles are only as good as your ability to redeem them for travel).

A high earning rate (how much value you get in rewards for every dollar spent on the card).

A sign-up bonus (a windfall of points for meeting a spending requirement in your first few months).

Even with these goals in mind, there are all kinds of considerations that will influence your decision on a travel rewards credit card.

Travel cards are for travelers

Travel cards vs. cash-back cards.

The very first question to ask yourself when choosing a travel credit card is: Should I get a travel card at all? Travel credit cards are best for frequent travelers, who are more likely to get enough value from rewards and perks to make up for the annual fees that the best travel credit cards charge. (Some travel cards charge no annual fee, but they tend to offer lesser rewards than full-fee cards.) A NerdWallet study found that those who travel only occasionally — say, once a year — will probably get greater overall rewards from cash-back credit cards , most of which charge no annual fee, than from a travel card.

Flexibility and perks: A trade-off

Co-branded cards vs. general travel cards.

Travel credit cards fall into two basic categories: co-branded cards and general travel cards.

Co-branded cards carry the name of an airline or hotel group, such as the United℠ Explorer Card or the Marriott Bonvoy Boundless® Credit Card . The rewards you earn are redeemable only with that particular brand, which can limit your flexibility, sometimes sharply. For example, if your credit card's co-branded airline partner doesn't have any award seats available on the flight you want on the day you want, you're out of luck. On the other hand, co-branded cards commonly offer airline- or hotel-specific perks that general travel cards can't match.

General travel cards aren't tied to a specific airline or hotel, so they offer much greater flexibility. Well-known general travel cards include the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card . Rewards on general travel cards come as points (sometimes called "miles" but they're really points) that you can redeem for any travel expense. You're not locked into using a single airline or hotel, but you also won't enjoy the perks of a co-branded card.

Evaluating general travel credit cards

What you get with a general travel card.

The credit cards featured at the top of this page are general travel cards. They're issued by a bank (such as Chase or Capital One), carry only that bank's name, and aren't tied to any single airline or hotel group. With these cards, you earn points on every purchase — usually 1 to 2 points per dollar spent, sometimes with additional points in certain categories.

Issuers of general travel cards typically entice new applicants with big sign-up bonuses (also known as "welcome offers") — tens of thousands of miles that you can earn by spending a certain amount of money on the card in your first few months.

» MORE: NerdWallet's best credit card sign-up offers

What do you do with those points? Depending on the card, you may have several ways to redeem them:

Booking travel. With this option, your points pay for travel booked through the issuer's website, using a utility similar to Orbitz or Expedia. For example, if points were worth 1 cent apiece when redeemed this way, you could book a $400 flight on the issuer's portal and pay for it with 40,000 points

Statement credit. This lets you essentially erase travel purchases by using your points for credit on your statement. You make travel arrangements however you want (directly with an airline or hotel, through a travel agency, etc.) and charge it to your card. Once the charge shows up on your account, you apply the necessary points and eliminate the cost.

Transferring to partners. The card issuer may allow you to transfer your points to loyalty programs for airlines or hotel chains, turning your general card into something like a co-branded card (although you don't get the perks of a co-brand).

Cash back, gift cards or merchandise. If you don't plan to travel, you can burn off your rewards with these options, although you'll often get a lower value per point.

Airline and hotel cards sharply limit your choice, but they make up for it with perks that only they can offer, like free checked bags or room upgrades. General travel cards, on the other hand, offer maximum flexibility but can't provide the same kinds of perks, because the banks that issue them don't operate the airlines or hotels. Still, there are some noteworthy perks on general travel cards, including:

Travel credit. This is automatic reimbursement for travel-related spending. Some top travel credit cards offer hundreds of dollars a year in travel credit.

Trusted traveler reimbursement. More and more travel credit cards are covering the application fee for TSA Precheck and Global Entry, programs that allow you to move through airport security and customs more quickly.

Airport lounge access. Hundreds of lounges worldwide operate separately from airlines under such networks as Priority Pass and Airspace, and several general travel cards offer access to these lounges.

Points programs

Every major card issuer has at least one travel card with a points program. American Express calls its program Membership Rewards, while Chase has Ultimate Rewards® and Citi pays in ThankYou points. Wells Fargo has Wells Fargo Rewards, and U.S. Bank has FlexPerks. Bank of America® travel cards offer points without a fancy name. Travel cards from Capital One, Barclays and Discover all call their points "miles."

These programs differ in how much their points are worth and how you can use them. Some offer the full range of redemption options, including transfers to loyalty programs. Others let you use them only to book travel or get statement credit.

» MORE: Travel loyalty program reviews

Evaluating airline credit cards

What you get with an airline credit card.

Airline credit cards earn "miles" with each purchase. You typically get 1 mile per dollar spent, with a higher rate (2 or more miles per dollar) on purchases with the airline itself. (Some airline cards have also begun offering extra miles for purchases in additional categories, such as restaurants or car rental agencies.) These miles go into the same frequent-flyer account as the ones you earn by flying the airline, and you can redeem them for free flights with the airline or its alliance partners.

Co-branded airline cards typically offer sign-up bonuses (or welcome offers). But what really sets them apart are the perks they give you. With some cards, for example, the checked-bag benefit alone can make up for the annual fee after a single roundtrip by a couple. Common perks of airline cards include:

Free checked bags. This commonly applies to the first checked bag for you and at least one companion on your reservation. Some cards extend this perk to more people, and higher-end cards (with higher annual fees) may even let you check two bags apiece for free.

Priority boarding. Holders of co-branded airline credit cards often get to board the plane early — after the airline's elite-status frequent flyers but before the general population. This gives you time to settle in and gives you a leg up on claiming that coveted overhead bin space.

In-flight discounts or freebies. You might get, say, 25% off the cost of food and beverages during the flight, or free Wi-Fi.

Airport lounge access. High-end cards often include a membership to the airline's airport lounges, where you can get away from the frenzy in the terminal and enjoy a complimentary snack. Some less-expensive airline cards give you only limited or discounted lounge access; others give you none at all.

Companion fares. This perk lets you bring someone with you for a lower cost when you buy a ticket at full price.

A boost toward elite status. Miles earned with a credit card, as opposed to those earned from actually flying on the airline, usually do not count toward earning elite status in an airline's frequent-flyer program. However, carrying an airline's high-end card might automatically qualify you for a higher tier within the program.

The biggest U.S. airlines — American, United and Delta — offer an array of credit cards. Each airline has a no-annual-fee card that earns miles on purchases but provides little in the way of perks (no free bags or priority boarding). Each has a high-end card with an annual fee in the neighborhood of $450 that offers lounge access and sumptuous perks. And each has a "middle-class" card with a fee of around $100 and solid ongoing perks. Southwest offers three credit cards with varying fees; smaller carriers may just have a single card.

» MORE: NerdWallet's best airline credit cards

Choosing an airline

Which airline card you get depends in large part on what airline you fly, and that's heavily influenced by where you live. Alaska Airlines, for example, has an outstanding credit card, but the airline's routes are concentrated primarily on the West Coast. So it's not a great option for those who live in, say, Buffalo, New York, or Montgomery, Alabama.

If your local airport is dominated by a single airline, then you're probably flying that carrier most (or all) of the time by default. Delta, for example, is the 800-pound gorilla at Minneapolis-St. Paul and Salt Lake City. United has the bulk of the traffic at Newark and Washington Dulles. American calls the shots at Charlotte and Dallas-Fort Worth. That airline's credit card may be your only realistic option. If you're in a large or midsize market with frequent service from multiple airlines, you have more choice.

» MORE: How to choose an airline credit card

Evaluating hotel credit cards

What you get with a hotel card.

Hotel credit cards earn points with each purchase. As with airline cards, you typically get more points per dollar for purchases from the co-brand partner, and some cards also give bonus points in additional categories. (Hotel cards tend to give you a greater number of points overall than airline cards, but each individual point is generally worth less than a typical airline mile.) Similar to the airline model, the points you earn with the card go into the same loyalty account as the points you earn from actually staying at a hotel. You redeem your points for free stays.

Hotel cards usually offer a sign-up bonus, but like airline cards, they really make their bones with the ongoing perks. Common perks on hotel cards include:

Free nights. Several cards offer this perk, which can make up for the card's annual fee. You may get a free night automatically every year, or you may unlock it by spending a certain amount within a year. In the latter case, it comes on top of the points you earn for your spending.

Upgrades and freebies. Cardholders may qualify for automatic room upgrades when available, or free or discounted amenities such as meals or spa packages.

Early check-in/late check-out. No one likes having to cool their heels in the hotel lobby waiting for 3 o'clock to check in. And no one likes have to vacate their room by 11 a.m. when their flight doesn't leave till evening.

Accelerated elite status. Some hotel cards automatically bump you up a level in their loyalty program just for being a cardholder.

» MORE: NerdWallet's best hotel credit cards

Choosing a hotel group

If you decide to go the hotel-card route, you'll need to decide which hotel group gets your business. Hotels aren't as market-concentrated as airlines, so if your travels take you mostly to metropolitan areas, you'll have a decent amount of choice. Keep in mind that even though there are dozens of nationally recognizable hotel brands, ranging from budget inns to luxury resorts, many of them are just units in a larger hotel company, and that company's card can unlock benefits across the group.

Marriott, for example, includes not only its namesake properties but nearly 30 other brands, including Courtyard, Fairfield, Renaissance, Residence Inn, Ritz-Carlton, Sheraton and Westin. The Hilton family includes DoubleTree, Embassy Suites, Hampton Inn and Waldorf-Astoria. InterContinental includes Holiday Inn, Candlewood, Staybridge and Crowne Plaza. Wyndham and Choice have more than 15 mid-tier and budget-oriented brands between them.

HOW TO COMPARE TRAVEL CREDIT CARDS

No travel rewards credit card is going to have everything you want. You're going to be disappointed if you expect to find a high rewards rate, a generous sign-up bonus, top-notch perks and no annual fee. Each card delivers value through a different combination of features; it's up to you to compare cards based on the following features and choose the best travel credit card for your needs and preferences.

Most of the best travel cards charge an annual fee. Fees in the range of $90 to $100 are standard for travel cards. Premium cards with extensive perks will have fees of $450 or more. Weigh the value of the rewards and perks you'll get to make sure they'll make up for the fee.

Can you find good cards without an annual fee? Absolutely! There are no-fee options on our list of the best travel credit cards, and we've rounded up more here . Just be aware that if you go with a no-fee travel card, you'll earn rewards at a lower rate, your sign-up bonus will be smaller, and you won't get as many (if any) perks.

Rewards rate

Rewards can be thought of in terms of "earn rate" and "burn rate".

The earn rate is how many points or miles you receive per dollar spent. Some general travel cards offer flat-rate rewards, meaning you get the same rate on all purchases, all the time — 2 miles per dollar, for example, or 1.5 points per dollar. Others, including most co-branded cards, offer a base rate of maybe 1 point per dollar and then pay a higher rate in certain categories, such as airline tickets, hotel stays, general travel expenses or restaurant meals.

The burn rate is the value you get for those points or miles when you redeem them. The industry average is about 1 cent per point or mile. Some cards, particularly hotel cards, have lower value per point on the "burn" side but give you more points per dollar on the earning side.

When comparing rewards rates, don't just look at the numbers. Look at the categories to which those numbers apply, and find a card that matches your spending patterns. Getting 5 points per dollar seems great — but if those 5X points come only on purchases at, say, office supply stores, and you don't spend money on office supplies, then you're getting lousy value.

Sign-up bonus

Travel cards tend to have the biggest sign-up bonuses — tens of thousands of points that you earn by hitting a certain amount of spending. But there's more to consider when comparing sign-up bonuses than just how many points or miles you earn. You must also take into account how much you have to spend to earn the bonus. While cash-back credit cards often require just $500 to $1,000 in spending over three months to unlock a bonus, travel cards commonly have thresholds of $3,000 to $5,000.

Never spend money you don't have just to earn a sign-up bonus. Carrying $3,000 in debt for a year in order to earn a $500 bonus doesn't make economic sense — the interest you'll pay could easily wipe out the value of the bonus.

Finally, keep in mind that the biggest bonuses will come on cards with annual fees.

Foreign transaction fees

A good travel card will not charge a foreign transaction fee. These fees are surcharges on purchases made outside the U.S. The industry standard is about 3%, which is enough to wipe out most if not all of the rewards you earn on a purchase. If you never leave the U.S., then this isn't much of a concern, but anyone who travels abroad should bring a no-foreign-transaction-fee card with them.

Some issuers don't charge foreign transaction fees on any of their cards. Others charge them on some cards but not all.

International acceptance

Not all travel credit cards are great companions for international travel. While Visa and Mastercard are good pretty much worldwide, you may encounter limited acceptance for American Express and, especially, Discover, depending on the destination. This doesn't mean world travelers should dismiss AmEx and Discover. Just know that if you take one of these cards with you overseas, you'd be smart to bring along a backup in case you run into acceptance problems. (Having a backup card is good advice within the U.S., too, really.)

Travel protections

Consider which travel protections — car rental insurance , trip cancellation coverage , lost baggage protection — are important to you.

"Rewards" are what you get for using a credit card — the points earned with each transaction and the bonuses you unlock with your spending. "Perks" are goodies that you get just for carrying the card. There's a very close correlation between the annual fee on a card and the perks you get for carrying it. Cards with no annual fee are all about rewards and go very light on perks. Premium cards with annual fees of $450 or more are laden with perks (although sometimes their rewards aren't too special). Midtier cards (in the $100 range) tend to have solid rewards and a handful of high-value perks.

Assuming you take advantage of them, the perks often make up for the annual fee on a card quite easily. This is especially true with co-branded cards. Free checked bags can pay for an airline card several times over, and a free night is usually worth more than the fee on a hotel card. When comparing the perks of various cards, be realistic about which ones you will and won't use. Sure, that card may entitle you to a free spa package the next time you're at a five-star hotel, but how often do you stay at five-star hotels?

SHOULD YOU GET A TRAVEL CARD? PROS AND CONS

Pros: why it's worth getting a travel card.

The sign-up bonus gives you a big head-start on travel. Bonuses on the best travel credit cards typically run $500 or more — enough for a roundtrip ticket in many instances.

Perks make travel less expensive and more relaxing. You won't have to worry about cramming a week's worth of clothes into a carry-on if your travel credit card gives you a free checked bag (or automatically reimburses you for the bag fee). Hate the crush of travelers in the terminal? Escape to the airport lounge. Renting a car? Use a travel card that provides primary rental car insurance.

Rewards get you closer to your next trip with every purchase. Spending money on the mundane activities of daily life has a silver lining when you know that every $1,000 you spend will knock $10 or $20 off the cost of that future beach vacation or trip home to see Mom and Dad.

No foreign transaction fee can mean big savings. Take just any old credit card with you on vacation outside the U.S., and $1,000 worth of purchases can cost you $30 off the top due to the foreign transaction surcharge. Good travel cards don't charge this fee.

"Double dipping" gives you more points on travel purchases. Buy a plane ticket or book a hotel room, and you'll earn loyalty points or miles regardless of how you pay. Use the right credit card, though, and you'll earn even more points and miles on top of those.

Strategic redemption can multiply your value. With cash-back credit cards, 1 cent is worth 1 cent, and that's just how it goes. The points and miles on many travel credit cards have variable value based on how you redeem them — booking travel with them vs. transferring them to a partner, booking domestic vs. international flights and economy vs. business class, staying at budget hotels vs. high-end resorts, and so on.

Cons: Why a travel card might not be for you

The best cards charge annual fees. In many cases, the value you get from a credit card more than makes up for the annual fee. But some people are dead set against paying a fee under any circumstances. If that's you, your options in travel cards will be sharply limited, and you won't get the perks that provide a big portion of the value on many cards.

Sign-up bonus spending requirements can be steep. A bonus worth $500, $600 or $700 is attractive, but only if you can afford to earn it with spending you were going to do anyway. If you have to amass thousands of dollars in debt and then pay interest on it, it's not worth it.

Travel cards aren't ideal for infrequent travelers. In the first year with a travel card, you're probably going to come out ahead: You can earn a big sign-up bonus, and several popular cards waive the first year's annual fee, too. In subsequent years, though, you'll break even on that fee only if you use the card enough to make up for it (with the rewards you earn and redeem and the perks you use). Infrequent travelers are more likely to get more total rewards from a cash-back card with no annual fee.

Cash back is simpler and more flexible. Some travel cards allow you to redeem your rewards only for travel. Others give you poor value unless you redeem for travel. Still others have complicated redemption options, making it hard to get the most out of your rewards. With cash-back credit cards, you can use your rewards on anything, you know exactly how much your rewards are worth, and redemption is usually simple.

Rewards cards tend to charge higher interest rates. If you regularly carry a balance from month to month, a travel credit card — or any rewards credit card — probably isn't your best choice. The interest you pay is eating up the value of your rewards. You're better off with a low-interest card that reduces the cost of carrying debt.

MAKING THE MOST OF YOUR TRAVEL CARD

Maximize your rewards with the following tips:

Plan your credit card application around a big purchase to earn the sign-up bonus.

Seize every opportunity to pick up the tab, especially if your travel credit card pays bonus rewards on dining; your friends can pay you back while you collect rewards.

Redeem rewards for travel instead of gift cards, merchandise or (in most cases) cash back to get the best value.

Join the loyalty program associated with a co-branded card — a frequent-flyer or frequent-guest program.

Shop for essentials in your card’s online bonus mall or through its exclusive offers, if available, to get extra rewards.

OTHER CARDS TO CONSIDER

It’s worth considering whether a travel credit card is even right for you in the first place. A NerdWallet study found that cash-back credit cards often earn more money — even for many travelers.

If you carry a balance from month to month, the higher interest rates typically charged by rewards cards can cancel out any rewards earned. If you have a good credit score, you're better off with a low-interest credit card that can save you money on interest.

A good travel credit card shouldn't charge foreign transaction fees, but there are good non-travel cards that also don't charge them. See our best cards with no foreign transaction fee .

If you value transparency and flexibility in your rewards, you can't go wrong with a cash-back card — and you can still use the rewards for travel, if you want.

Finally, if you're still not sure what's right for you, take a look at our best rewards credit cards for options beyond travel and cash back.

NerdWallet's Sam Kemmis contributed to this article.

To view rates and fees of the American Express® Gold Card , see this page . To view rates and fees of The Platinum Card® from American Express , see this page .

Last updated on May 24 , 2024

Methodology

NerdWallet's Credit Cards team selects the best travel rewards credit cards based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of travelers. Factors in our evaluation include each card's annual fee, foreign transaction fees, rewards earnings rates, ease of use, redemption options, domestic and international acceptance, promotional APR period, bonus offers, and cardholder perks such as automatic statement credits and airport lounge access. Learn how NerdWallet rates credit cards.

Frequently asked questions

Travel credit cards earn points (sometimes called miles) each time you buy something. The standard earning rate is 1 to 2 points per dollar spent, and many cards give you extra points for certain purchases, particularly travel expenses. The value of a point depends on the card that earned it and how you redeem it, but a good rule of thumb is to assume each point is worth an average of about 1 cent.

Your points accumulate in a rewards account, where you can use them to pay for travel. Most cards let you book travel directly using a portal similar to those at online travel agencies or on airline and hotel websites, but instead of paying cash, you pay with your points. Depending on the card, you may also have the option of booking travel any way you want, paying for it with the card and then cashing in your points for a credit against those expenses.

Points and miles are just different names for the same thing: the currency used in a travel rewards program. Some travel credit cards call them points, some call them miles.

Airline frequent flyer programs have long used the term “miles” to refer to the rewards you earn for flying. That’s because at one time, you really did earn rewards according to how many miles you flew — the longer the flight, the more miles you earned. Nowadays, most domestic airlines give out “miles” based on how much you spend, not how far you fly, so they’re really just points. (There are a few exceptions, though, notably Alaska Airlines.)

Especially when it comes to redeeming your rewards, there’s no difference between points and miles. The number of points or miles you need is based mostly on the cost of what you’re redeeming them for. It takes more than 500 miles (value about: $5) to get a free 500-mile flight!

The value of a point or mile depends on the card you earned it with and how you redeem it. A common rule of thumb is to assume that each point or mile is worth an average of 1 cent, although you can certainly get a much higher (or lower) redemption value. See our travel loyalty roundup page for NerdWallet’s current valuations for airline miles and hotel points.

Travel credit cards fall into two main categories: co-branded and general-purpose.

• Co-branded travel cards carry the name of an airline or hotel chain. The rewards you earn on the card can typically be redeemed only with that brand (or maybe its partners). Co-branded cards limit your flexibility, but because they are issued in partnership with an airline or hotel, they can give you special perks, like free checked bags or room upgrades.

• General-purpose travel cards are issued by a credit card company and are not directly tied to any particular airline or hotel. They earn points in the issuer's own program, such as American Express Membership Rewards, Chase Ultimate Rewards® or Citi ThankYou. These points are a lot more flexible, as you can use them to pay for a range of travel expenses, including flights on any airline or stays at any hotel. However, they don’t offer the airline- or hotel-specific perks of co-branded cards.

Travel cards — like rewards cards in general — typically require good to excellent credit for approval. Good credit is generally defined as a credit score of 690 or better. However, credit scores alone do not guarantee approval. Every issuer has its own criteria for evaluating applications.

Business travel can earn credit card rewards just like leisure travel. Credit cards that earn rewards for travel purchases don't distinguish between one or the other — meaning, if a card pays 3X points on airfare, for example, it's going to pay it no matter why you're buying the ticket. There are also travel credit cards specifically designed for business operators, with benefits and perks better aligned with their needs.

Where things get complicated is when you're not arranging the travel yourself. With credit card points, the rewards go to the cardholder. So if you arrange travel through your employer and the cost goes on the "company card," then the company card gets the points. Put it on your own card and get reimbursed later, and you get the points. (And if you have a company card with your name on it? That may come down to company policy.)

When redeeming travel rewards, you want to get as much value as possible. If you can get more value by using your rewards than by using cash, then it's smart to do so. (And of course, the reverse also applies.) NerdWallet has calculated the baseline values of most major credit card points, airline miles and hotel points. When you get a value that exceeds these baselines, go ahead and use your rewards. If not, consider using cash.

For example, say you could book a trip by paying $400 cash for a ticket or by redeeming 50,000 points or miles. In that case, your points would be getting you a value of 0.8 cents apiece (50,000 x 0.8 cents = $400). If the baseline value of each point is 1 cent, then you're better off paying cash and saving the points for when you can redeem them for 1 cent or better.

That said, you don't want to be overthinking it and hoarding points indefinitely in search of the deal to end all deals. Like any other currency, travel rewards lose value over time. That flight that costs 50,000 points today might cost 55,000 next year. Do you have enough points to get you where you want to go, when you want to go, in the way you want to get there? If so, don't let fractions of a penny stop you from booking your trip. It's your money, and you get to decide how to spend it.

A number of travel credit cards come with "travel credits," which reimburse you for specific expenses. The Chase Sapphire Reserve® , for example, has a $300 annual travel credit; several cards offer credits toward things like airline fees or hotel bookings; and a bunch of cards have a credit for the application fee for TSA PreCheck or Global Entry .

The less restrictive a credit is, the easier it is to redeem. The easiest travel credit to redeem is one that:

Applies to a broad range of expenses. Some credits are very fickle. You may get $200 a year in "airline credit," but it applies only to incidental fees (not airfare) on a single airline that you have to choose ahead of time. A card may offer hundreds of dollars in credit toward travel, but you have to go through the issuer's booking portal, where rates may be more expensive and options more limited. Other credits, however, are broad and open-ended: $300 on any travel expense, $100 toward any airline booking, and so on.

Shows up automatically on your statement. Your issuer's system should be able to recognize qualifying expenses and then apply the credit to them without you having to do anything. If the only way to receive the credit is by calling a phone number or submitting receipts or other documentation, that makes it harder to redeem, which in turn makes it less likely that you'll redeem (and that may be the point).

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• Are Travel Credit Cards Worth It?

A travel credit card can help bring down the cost of your next trip, but it can come with potential pitfalls too.

Updated: March 21, 2024

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• Quick Pros & Cons for Travel Cards
• What Is a Travel Card?
• Should You Get a Travel Card?
• FAQs About Travel Cards

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Are travel credit cards worth it.

Travel credit cards may be a great way for travelers to enjoy perks while seeing the world. You could earn points for every purchase, then redeem them for free flights and hotel stays. Keep in mind, some travel credit cards may include an annual fee. So figuring out if a travel credit card is worth it requires you to evaluate the cost of the card against the value of the perks, benefits and rewards that the card offers.

How travel credit card rewards work

Spending money with a travel credit card helps earn points or miles for every dollar you spend. Travel cards may also offer points for the money you spend specifically on travel, such as airfare, hotel stays or car rentals. This could include other categories as well, such as purchases at restaurants, grocery stores and gas stations. Many travel credit cards also offer sign-up bonuses, sometimes called new cardmember bonuses, that allow you to earn extra points for spending a certain amount on your card within the first few months.  

Once you have enough points or miles saved up, you may redeem for a free flight, hotel stay or deals in the credit cards rewards program. If you have an airline or hotel credit card, you may use your points or miles for rewards with that brand. General travel credit cards allow you to redeem rewards with multiple chains. Both general and co-branded cards may include a rewards program that features travel deals as well as deals on retail merchandise and gift cards.

How to tell if a travel credit card is worth it for you

Before getting a travel credit card, determine whether you'll make the most of the benefits and rewards offered. A travel credit card may be worth it if some of the following scenarios are true for you.

You'll use the points and miles

You already spend in those categories, you'll use the annual travel credit, you'll use the extra perks, you can pay back your balance on time, the benefits are worth the annual fee.

One of the biggest benefits that travel credit cards have is the rewards you receive. When deciding if you should get a travel card, figure out whether you're likely to use the points or miles by looking at the card's rewards program. If it includes enticing travel deals that meet your need to get away, or exclusive discounts on merchandise you love, spending responsibly on your travel credit card may be very valuable.

Many travel credit cards offer extra points for spending in popular categories including travel, groceries and restaurants. Hotel and airline credit cards usually offer higher bonus points for hotel stays and flights with the affiliated brand. 

Depending on the card, you may be able to accelerate the rewards that you earn. This means that you'll earn points more quickly and efficiently by spending money on travel and other bonus categories that you already spend money on. Bonus categories allow you to earn points on a specific spend category such as dining, travel, gas, etc.

An annual travel credit is a perk offered by some premium travel cards that you can use for your travel-related purchases. The Chase Sapphire Reserve Card offers a compelling travel credit .

Some travel credit cards give you added convenience during your travels with extra perks. General travel, hotel and airline cards may come with a variety of benefits, such as hotel room upgrades, lounge access, late checkout, priority boarding, discounts on baggage and TSA PreCheck ® and more.

The rewards you would receive from a travel credit card are only worth it if you can pay it back responsibly. Before getting a travel card, make sure you're able to pay off your balance each month on time to avoid late fees and interest.

Along with the rewards and perks, many travel credit cards come with an annual fee. The annual fee may be worth it if the value you redeem the points for is higher than the annual fee. Taking advantage of all the spending benefits could help offset the cost of the annual fee.

When should you get a travel credit card?

You can pair a great sign-up bonus offer with an upcoming trip.

A sign-up bonus offers cardmembers bonus points for spending a certain amount of money on the card within the first few months of opening an account. For instance, you might earn 60,000 bonus points if you spend $4,000 on purchases in the first three months.

If you're planning to travel soon, using a travel credit card to pay for the trip could help you meet the spending minimum and earn the sign-up bonus.

Waived annual fee

Some travel credit cards waive their annual fee for the first year you open the account.

Benefits for upcoming travel

Even if your next itinerary can't help you meet a sign-up bonus spending minimum, many credit cards include perks to make your travel more rewarding. 

Hotel credit cards may include free room upgrades, complimentary breakfast and Wi-Fi or other on-site perks to make your stay enjoyable. 

Airline credit cards may get you into an airport lounge or reduce baggage costs. 

General travel credit cards, like the Chase Sapphire card , may include travel protections like Auto Rental Collision Waiver and Trip Cancellation/Interruption Insurance.

You're loyal to a hotel or airline brand

If you're already enrolled in a brand loyalty program for a hotel or airline, adding a co-branded travel credit card may help you earn points faster and allow you to redeem within the brand's ecosystem.

You travel often

If traveling is a regular part of your schedule, a travel credit card may help you earn points for expenses you already make. When you include the perks from travel credit cards, you may make your travel even more comfortable. As you earn more points, the redemptions available through travel credit card reward programs may gift you free nights or free flights, along with other convenient travel perks.

Bottom line: Make your travel credit card work for you

A travel credit card is worth it when you'll take advantage of the rewards and perks with your travel. If you enjoy traveling and would benefit from the bonus points, having a travel card may help you make the most of your spending and future trips. 

Do your research to understand which travel credit card fits your budget, matches your travel preferences and promises meaningful rewards, so you can select the travel credit card that is right for you.

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Cash Back vs. Travel Rewards: Which Is Better for You?

The right card for you will depend on your spending habits and lifestyle choices.

Cash Back vs. Travel Rewards Cards

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Both cash back and travel rewards credit cards offer perks, but a travel card may not deliver as much value if you don't travel often.

If you love to travel, you can easily put thousands of dollars in vacation expenses on your credit card every year. But the right rewards credit card can earn perks that reduce the sting of those bills.

Some rewards cards put a little cash back in your pocket whenever you spend. Others offer the opportunity to rack up travel rewards with each charge you make on the card.

Zeroing in on your spending habits and lifestyle preferences can help you choose the right rewards card.

How Rewards Credit Cards Work

Rewards credit cards provide benefits that make spending your hard-earned cash a little more pleasant. Each time you use one of these cards, you get something in return.

For example, a cash back credit card might return a certain percentage of your spending – often 1% to 5% – as dollars to redeem for statement credits, checks or direct deposits. On the other hand, a travel rewards card might earn airline miles or points that can be redeemed for flights, hotel stays, rental cars and various types of vacation expenses.

But paying down or paying off the balance on your card every month is crucial to get the most from a rewards credit card. That's because rewards credit cards tend to have higher interest rates than other cards, says Kassi M. Fetters, certified financial planner and founder of Artica Financial Services in Anchorage, Alaska.

"If you carry a balance on your credit card from month to month, the interest rate becomes a critical factor," Fetters says.

Choosing the Right Type of Rewards Credit Card

Knowing your spending habits is key to choosing the right type of rewards credit card, says Martha Cruz Zuniga, clinical associate professor and chair of the department of economics at The Catholic University of America in Washington, D.C.

"The main mistake is picking a rewards card based on the potential benefit – rewards – without comparing the actual cost: the interest rate it charges," Zuniga says.

For users who carry a balance , interest rates can take a heavy toll, with some cards charging annual percentage rates as high as 30%, she says.

"In most cases and when carrying a credit card balance, that cost would tend to exceed the potential rewards from a card," Zuniga says.

For this reason, she says folks who tend to carry a balance are better off finding a credit card that has "the most lenient fees and lower rates" rather than the biggest and best rewards. On the other hand, if you are confident that you will pay off the balance each month, a credit card that offers more rewards can be a good choice, even if the interest rate is higher.

Pros and Cons of Cash Back Credit Cards

Weighing the pros and cons of cash back credit cards can help you decide whether you want to apply for one.

If you want to keep things simple, a cash back rewards card might be a better bet than a travel rewards credit card, Zuniga says. "A cash back rewards card tends to be more straightforward than travel rewards," she says.

Other advantages to consider of cash back cards compared with travel cards:

• Low annual fee. If you pay an annual fee to use a card, it could be worthwhile based on the cash back you earn.
• Introductory APR. Cash back credit cards often come with an introductory 0% APR that can help you pay down a big purchase or debt without interest.
• Sign-up bonus. Many cards have a sign-up bonus , but you have to meet a spending requirement within a certain period to earn one.

A cash back credit card can boost your bottom line if you use it strategically, says Jennifer Bush, certified financial planner with Mainstreet Financial Planning in Los Gatos, California. Bush says she uses a couple of cash back credit cards in her everyday life.

"One of my cards gives great cash back on restaurants, gas and travel, so I use that one exclusively for those categories and nothing else," she says. "I use a second one for all other spending for 1.5% flat cash back."

However, cash back cards might not be the best fit for everyone. Disadvantages of these cards to keep in mind:

• High APRs. The ongoing rate you pay after any introductory APR can be high depending on your creditworthiness .
• Other benefits. These cards focus on cash back, which means that another type of card would be better if you were looking for travel benefits.
• Limited redemption options. Cash back is the primary option for most cash back credit cards.

Generally, cash back rewards are worth less than travel rewards, Fetters says. "The percentage of cash back is typically lower than the value of points or miles earned through travel rewards programs," she says.

Pros and Cons of Travel Rewards Credit Cards

You'll want to review the general pros and cons of travel rewards cards when you're trying to choose between this type of card and a cash back card.

Typically, a travel card can be a better option than a cash back card if you take frequent trips, says James Shagawat, certified financial planner and partner advisor at AdvicePeriod in Paramus, New Jersey.

"Travel-focused cards have higher point values in their rewards ecosystems," Shagawat says. That often makes them more valuable for travel than cash back on your purchases, he adds.

You may be able to transfer points from your card to hotel and airline loyalty programs, and perks might be available as soon as you open your account, Fetters says.

Other pros:

• Rewards value. You can earn points and miles at higher rates on travel spending than other rewards cards.
• Travel benefits. If you travel a lot, you may appreciate perks such as airport lounge access, travel insurance, free checked baggage – even travel credits. Some cards come with premium benefits, including VIP access to events and hotel room upgrades.
• Welcome bonuses. "Travel rewards cards often come with generous sign-up bonuses," Fetters says. "You can earn a significant number of points or miles after meeting specific spending requirements."

Some of the cons of travel rewards cards include:

• Annual fees. They tend to be higher than the fees for cash back credit cards. "While some cards waive the fee for the first year, it's important to consider whether the benefits outweigh the cost in the long run," Fetters says.
• Extensive rules. Redeeming points can be complicated with some travel credit cards.
• Limited redemption options. Some cards only earn rewards with specific travel brands. A general travel rewards credit card may offer more value if you don't want to be tied down to a particular airline or hotel chain.
• Credit requirements. You may need very good or excellent credit for certain travel credit cards.

If you want a straightforward choice, a travel rewards card might not be for you, says Patrick Payne, associate professor of practice, personal and family financial planning at the University of Arizona. "They are less flexible to use and are often much more complex," he says.

The cards may come with blackout dates and other restrictions. The complexity of the cards, Payne says, can make it difficult to figure out the true value of rewards.

Finding the Best Rewards Credit Cards

If you are looking for a great rewards credit card, do not focus exclusively on the rewards, Payne says.

Tread carefully before choosing a rewards card with a high annual fee, for example. Otherwise, cardholders might end up paying "more in the fee than they earn in higher rewards," Payne says.

Choose a card that is the right match for your spending patterns, he adds.

"Don't adjust your budget to fit the card – fit the card to your budget," he says. "Paying more for things you don't really value just to get points only leads to greater inefficiencies in your finances, which is the opposite of your goal."

If you're shopping for a card, use online tools to compare cards , Zuniga says. Look beyond the rewards to other aspects of cardholder experience.

"Look at online customer reviews to have a sense of the type of customer service, responsiveness to problems and solutions offered by a specific credit card," she says. "That should give you a sense of what to expect."

Tags: credit cards , cash back credit cards , Travel Credit Cards

Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired.

Avoid These Common Mistakes When Using Your New Travel Rewards as a Newlywed

T ravel rewards can be a newlywed couple's best friend, offering significant savings on everything from honeymoon flights to luxurious hotel stays. However, maximizing their value requires a bit of savvy. Many couples fall into some typical traps that can dilute the value of these precious points and miles we get from our credit cards . Let's walk through these mistakes so you can steer clear and truly capitalize on your travel rewards.

Ignoring the fine print

As newlyweds, you might be eager to jump into your first big adventure together using those travel rewards you've been collecting. But did you know that about 31% of travel rewards never get used? A big reason for this is that many people aren't fully aware of the conditions tied to their rewards. Aside from the well-known blackout dates -- those pesky periods when you can't use your points -- there are often other restrictions that can trip you up.

Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards

For instance, some programs might only allow you to redeem your points on certain days of the week, or you may find that points can only be used toward specific types of travel expenses like flights or hotel rooms, but not for upgrades or car rentals. Plus, many people don't realize that their rewards program might require bookings through a specific website or app to utilize points effectively. This restriction can be particularly frustrating if you find a better deal elsewhere but can't use your points to make the purchase. Also, some miles earned with airline credit cards have expiration dates.

Newlywed tip: Take some time together to review your rewards program's terms and conditions. Make it a fun planning session over coffee. Look out for details on redemption rules, eligible services, and required booking platforms. Knowing the ins and outs can help you avoid costly mistakes and maximize your rewards for that perfect getaway.

Overlooking transfer partners

Many travelers overlook a key feature of their rewards programs: the ability to transfer points to different airlines, hotels, or car rental services. This is not just a small perk; in many cases, transferring your travel credit card rewards points can significantly increase their value -- sometimes by as much as 20% or more during promotional periods.

For newlyweds planning their dream honeymoon or anniversary trip, this can be a game-changer. For instance, if your credit card points are part of a larger network, you might be able to transfer them to an international airline where they could be worth more due to better redemption options or favorable conversion rates. What's more, some programs offer occasional bonuses for transferring to specific partners. This can be a great opportunity to stretch your points even further, especially for that honeymoon.

For example, a one-way ticket in the QSuite on Qatar Airways can cost $6,000 or more. But, you could transfer your Chase Ultimate Rewards to either Qatar Airways Privilege Club or British Airways at a 1:1 transfer rate and use about 80,000 points. And 80,000 British Airways Avios are worth about $800. So, that's a significant discount.

Newlywed tip: Regularly check your rewards program for updates on transfer partners and the current ratios. Keeping an eye on these options can dramatically increase the flexibility and potential value of your points, potentially opening up new and better travel opportunities that you might have missed otherwise.

Misjudging the value of points

As newlyweds, you might be balancing the excitement of new experiences with the practicalities of budgeting. A common dilemma in the world of travel rewards is figuring out when to use your points. We either hoard them, hoping for the perfect redemption opportunity that may never arrive, or spend them impulsively on low-value options. It's crucial to understand that the value of travel points is highly variable: they can be worth as little as less than $0.01 each or as much as over $0.05, depending on how and where they are used.

For example, using points for a last-minute flight or during peak travel times can often yield a higher value per point compared to other options, like purchasing merchandise or services. On the other hand, some high-value redemptions might require more planning and flexibility in travel dates. So, if you can be flexible on that honeymoon or anniversary trip, your points could stretch much further.

Newlywed tip: Stay informed about the current value of your points in different redemption scenarios. Use online calculators and comparison tools, and follow travel reward blogs that analyze point valuations regularly. Knowing whether it's better to use points or cash for each transaction will help you make the most educated decisions, ensuring you maximize the benefits of every point you've earned.

Not meeting the minimum spend requirement

Many travel rewards cards come with hefty sign-up bonuses, but these often require you to meet a minimum spend within the first few months. As newlyweds, you might be juggling wedding expenses, setting up your home, and planning your travels. Missing this window is a costly mistake. Plan your spending strategically to ensure you hit that target. Think about upcoming expenses, like wedding-related costs, home improvements, or even pre-paying some bills, to help meet the requirement.

Newlywed tip: If you're planning large purchases, time them to align with your card's sign-up period. This will help you meet the spending requirement without going over your budget. Consider combining your spending efforts as a couple to hit those targets faster.

Travel rewards can be your ticket to cheaper, more exciting trips, but only if you use them right. By sidestepping these common missteps and keeping informed, you're all set to make every point count toward your next big adventure.

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Bank of America Travel Rewards credit card review: Simplicity for points beginners

Bank of America Travel Rewards credit card overview

The no-annual-fee Bank of America® Travel Rewards credit card has the potential to be a solid flat-rate card if you are a member of the Bank of America Preferred Rewards® program . However, without the Preferred Rewards earning bonus, the card falls short compared to other flat-rate cards on the market. Card Rating*: ⭐⭐⭐

* Card Rating is based on the opinion of TPG's editors and is not influenced by the card issuer.

For beginners, points and miles can seem daunting. When I first started earning credit card rewards, the idea of transferring points and trying to find the absolute best redemptions was exciting but also nerve-wracking — and I'm not alone. Many beginners give up on using credit card rewards to pay for travel because it seems too complicated.

That's where an option like the Bank of America Travel Rewards credit card comes into play. It has no annual fee and a recommended credit score of 670. Points and miles experts will likely not be amazed at the perks and redemption options, but the simplicity of this card's earning rate and redemption process provides a nice starting point for beginners.

Let's dig into the card details so you can decide if it's right for you.

Bank of America Travel Rewards welcome offer

The Bank of America Travel Rewards credit card is currently offering 25,000 bonus points after you make at least $1,000 in purchases in the first 90 days of account opening. These points are redeemable at a flat rate of 1 cent per point toward travel or dining purchases, so this bonus is worth $250 — a solid offer but significantly less valuable than what you'll find on other top travel cards .

It's not a flashy bonus, but it is easy to hit since the minimum spending requirement works out to $11.11 per day. And since the card has no annual fee, you're essentially earning rewards on purchases you would have normally made without any up-front cost.

Bank of America does have a 24-month restriction , though the details vary from card to card. The wording for the Travel Rewards card states:

"This card may not be available to you if you currently have or have had the card in the preceding 24 month period."

This means that you can get a second Travel Rewards card if you held one before but must wait 24 months after closing your old account before opening a new one.

Related: The ultimate guide to credit card application restrictions

Bank of America Travel Rewards benefits

The real benefit of the Bank of America Travel Rewards is its simplicity. There are no bonus categories, earning caps or transfer partners. For beginners, that can be a great way to start a points and miles journey.

The card offers an unlimited 1.5 points for every dollar spent on all purchases. Your points don't expire as long as you keep your account open. You'll also enjoy no booking restrictions when you redeem your points and will pay no foreign transaction fees when you swipe the card outside the U.S.

As expected with a no-annual-fee card, you won't get luxury perks with this card. However, since it is a Visa Signature card, you will still have access to certain travel protections and benefits, including:

• Auto rental insurance
• Zero fraud liability
• Roadside assistance

Again, this isn't an extensive list of benefits, but it's decent for a no-annual-fee card.

Related: How to build a no-annual-fee card strategy

Earning points on the Bank of America Travel Rewards

The Bank of America Travel Rewards card has a simple earning structure, but there's more than meets the eye. You'll earn unlimited 1.5 points per dollar on every purchase. There's no yearly cap on rewards earned, and your points won't expire for as long as your account is open.

This is a fairly standard earning rate for a no-annual-fee card, though you can find cards with more competitive reward structures . However, the rewards structure becomes much more valuable if you qualify for the Bank of America Preferred Rewards program .

To enroll in Preferred Rewards, you'll need an eligible Bank of America personal checking account and a three-month average balance of at least $20,000 across your Bank of America and Merrill accounts. There are four levels of Preferred Rewards, and each comes with an earning bonus on the Travel Rewards card.

As you can see, those with Platinum Honors and Diamond can earn 2.625 points per dollar on every purchase, which is an impressive return for everyday purchases. Plus, you'll get a savings account interest bonus, discounted banking and investing fees, and discounted rates on auto loans and mortgages.

Still, if you aren't a Preferred Rewards member, the earning rate of 1.5 points per dollar is lackluster.

Related: Stop ignoring Bank of America Preferred Rewards

Redeeming points on the Bank of America Travel Rewards

Bank of America points act more like cash-back rewards since each point is worth a flat 1 cent . You can redeem them as a statement credit for travel or dining purchases (starting at a minimum of 2,500 points). When you make a purchase, simply login, log in to your account and select any qualifying transaction from the previous 12 months.

Although travel enthusiasts may see this as a disadvantage, beginners might rejoice at this no-stress process. You don't have to think about maximizing reward redemptions or figuring out the best transfer partner for booking your travel, which can be a headache for someone looking for a simple, no-frills way to earn and use their points.

You can also use your points for a cash reward — a check or a deposit into a qualifying Bank of America account. However, you'll get a value of just 0.6 cents per point this way (2,500 points = $15), so you're much better off using them for travel or dining purchases.

Finally, you can redeem your points for gift cards, though the exact value varies by merchant.

Related: The best Bank of America credit cards of 2024

Which cards compete with the Bank of America Travel Rewards?

One of these may be a better fit if you want more perks or a different earning structure than the Bank of America Travel Rewards offers.

• If you want more perks : The Bank of America® Premium Rewards® credit card is a mid-tier travel card with a $95 annual fee. It earns the same 1.5 points per dollar base rate as the Travel Rewards card, but you'll also earn 2 points per dollar on travel and dining purchases and get more travel perks. For more information, see our full review of the Premium Rewards card .
• If you want more flexible rewards : The Capital One VentureOne Rewards Credit Card earns 1.25 miles per dollar spent on everyday purchases and 5 miles per dollar on hotels and car rentals purchased through Capital One Travel. However, the card shines by giving you access to the issuer's 15-plus transfer partners , including British Airways, Turkish Airlines and Wyndham. For more information, see our full review of the Capital One VentureOne Rewards .
• If you want even more cash back: The Chase Freedom Unlimited is another great no-annual-fee card option and offers 5% cash back on travel purchases through the Ultimate Rewards portal, 3% back at restaurants and drugstores and 1.5% back on all other purchases. For more information, see our full review of the Freedom Unlimited .

For additional options, check out our full list of the best cash-back credit cards .

Related: How to choose a cash-back credit card

Is the Bank of America Travel Rewards worth it?

If you're looking for simplicity in how you earn and redeem points, the no-annual-fee Bank of America Travel Rewards credit card could be a good option for you, especially if you're a Bank of America Preferred Rewards customer. However, more seasoned points and miles travelers will likely want a card with higher earning rates and more redemption options.

Bottom line

The Bank of America Travel Rewards card offers a simple earning rate and redemption options many beginners will appreciate. However, frequent travelers who want better earning rates and the flexibility of transfer partners should consider other options.

Apply here: Bank of America Travel Rewards credit card

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Chase sapphire preferred card vs. citi strata premier: which is the better low-fee rewards credit card, both of these mid-tier travel cards pack in a lot of value — which one is right for you.

The Citi Strata Premier ℠  Card is great in many respects, but in a head-to-head battle, the Chase Sapphire Preferred® Card is the winner. With the Sapphire Preferred Card, you'll have an easier time redeeming points for good value and will enjoy more travel protections and perks. However, the Strata Premier edges out the Sapphire Preferred Card when it comes to earning points on purchases.

CNBC Select walks you through the benefits of both travel credit cards so you can choose the one that best aligns with your spending habits.

Chase Sapphire Preferred® Card

Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Chase Travel Hotel Credit, plus more.

Welcome bonus

Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

Regular APR

21.49% - 28.49% variable on purchases and balance transfers

Balance transfer fee

Either $5 or 5% of the amount of each transfer, whichever is greater

Foreign transaction fee

Credit needed.

Excellent/Good

Terms apply.

Read our Chase Sapphire Preferred® Card review .

Citi Strata Premier℠ Card

Earn 10 points per $1 spent on Hotels, Car Rentals, and Attractions booked on CitiTravel.com.; 3 points per $1 on Air Travel and Other Hotel Purchases, at Restaurants, Supermarkets, Gas and EV Charging Stations; 1 Point per $1 spent on all other purchases

Earn 70,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $700 in gift cards or travel rewards at thankyou.com

21.24% - 29.24% variable

5% of each balance transfer, $5 minimum

Good/Excellent

See rates and fees . Terms apply.

Chase Sapphire Preferred vs. Citi Strata Premier

Earning points, redeeming points, additional perks.

• The Chase Sapphire Preferred® Card is offering new cardholders the chance to earn 75,000 points after spending $4,000 within the first three months from account opening.
• Chase Ultimate® Rewards can be redeemed for one cent each as cash back, so this bonus is worth at least $750. With the Sapphire Preferred, you can boost that value to 1.25 cents per point when you use the points to book through Chase Travel SM , making the intro bonus worth at least over $900 in travel.

Citi Strata Premier ℠ Card

• New Citi Strata Premier ℠  Card members can earn 70,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, the same spending requirement and timeframe as the Sapphire Preferred.
• You can redeem ThankYou® points for one cent per point through Citi's travel portal or in other ways such as for gift cards or cash back.

With both cards, you can also transfer points to hotel and airline loyalty programs. This option allows you to book expensive hotels or flights with your points, which can greatly increase the value you receive for your rewards.

Winner : Chase Sapphire Preferred

Both of these travel credit cards have a $95 annual fee.

Winner : Tie.

If you want to earn loads of points, both of these cards can help you meet that goal.

• 5X points on travel purchased through Chase Travel SM
• 5X points on Lyft rides through March 31, 2025
• 5X total points on Peloton equipment and accessory purchases of $150+ (earn a maximum of 25,000 total points through March 31, 2025)
• 3X points on dining
• 3X points on select streaming services
• 3X points on online grocery purchases (not including Target, Walmart and wholesale clubs)
• 2X points on all other travel purchases
• 1X points on all other purchases

Citi Strata Premier ℠  Card

• 10X points on hotels, car rentals and attractions when booked through CitiTravel.com
• 3X points on air travel
• 3X points on hotels (not booked through CitiTravel.com)
• 3X points at restaurants
• 3X points at supermarkets
• 3X points at gas stations and EV charging stations

The Strata Premier offers a higher rate of return on hotels than the Sapphire Preferred, and that advantage extends to airfare when you aren't booking through the card issuer's travel portal. The Strata Premier also earns more on common expenses such as supermarkets (not just online groceries) and at gas stations and EV charging stations. The only spending categories where it loses out to the Sapphire Preferred are streaming services, Lyft rides and certain Peloton purchases (relatively small or rare expenses for most people) and travel purchases that aren't airfare or hotels.

Winner: Citi Strata Premier

Earning rewards is only half of the equation with a travel card, your redemption options matter just as much. Both of these cards offer a range of redemptions that provide one cent per point in value, including cash back and gift cards. The Sapphire Preferred also gives cardholders a 25% boost in value (1.25 cents per point) when they use points to pay for travel booked through Chase Travel SM .

But if you want to get the most value out of either card, then you'll want to look at the transfer partners.

With the Sapphire Preferred, you can transfer Chase points to these airline and hotel programs at a 1:1 ratio:

• Aer Lingus AerClub
• Air Canada Aeroplan
• British Airways Executive Club
• Emirates Skywards
• Air France-KLM Flying Blue
• Iberia Plus
• IHG One Rewards
• JetBlue TrueBlue
• Marriott Bonvoy
• Singapore Airlines KrisFlyer
• Southwest Rapid Rewards
• United Airlines MileagePlus
• Virgin Atlantic Flying Club
• World of Hyatt

The Citi Strata Premier ℠  Card allows you to transfer your Citi ThankYou points to the following travel programs at a 1:1 ratio unless otherwise noted:

• Aeromexico Rewards
• Accor Live Limitless (2:1)
• Avianca Lifemiles
• Cathay Pacific Cathay
• Choice Privileges (1:2)
• Etihad Guest
• EVA Air Infinity MileageLands
• Leading Hotels of the World Leaders Club (5:1)
• Qantas Frequent Flyer
• Qatar Airways Privilege Club
• Thai Airways Royal Orchid Plus
• Turkish Airlines Miles & Smiles
• Wyndham Rewards

How they compare

Sapphire Preferred cardholders have access to several exceptionally valuable and useful loyalty programs. World of Hyatt is a lucrative program that allows you to book less expensive hotels starting at 3,500 points and luxury locations for 25,000 to 45,000 points. You can also transfer points to book flights with all three major airline alliances (Oneworld, Star Alliance, SkyTeam) and several non-alliance airlines such as JetBlue, Southwest and Emirates.

Citi's transfer partners also unlock the ability to book rewards with all three of the biggest airline alliances and you get access to non-alliance airlines such as Etihad, Emirates and JetBlue. However, Citi ThankYou points aren't as versatile when it comes to booking hotels. On top of that, ThankYou points are only worth one cent each if you prefer to keep things simple by using points to pay for CitiTravel.com bookings.

At the end of the day, the best card for redeeming points will depend on where you want to go and how to prefer to use travel rewards. That said, the Chase Sapphire Preferred provides cardholders more avenues for earning a value higher than one cent per point on their redemptions.

Consumers with either card you'll benefit from no foreign transaction fees and both cards are widely accepted.

Chase Sapphire Preferred cardholders enjoy strong travel and shopping protections, including:

• Trip cancellation and interruption insurance
• Primary rental car collision coverage
• Baggage delay insurance
• Trip delay reimbursement
• Travel and emergency assistance services
• Purchase protection
• Extended warranty protection

The Sapphire Preferred also comes with a 10% points bonus every card anniversary, this bonus is based on the previous year's purchases. If you spent $10,000, you would earn 1,000 bonus points. It also has an annual $50 statement credit for hotels you book through Chase Chase Travel SM .

Chase also has a handful of partnerships that provide additional value for cardholders who use these services. This includes:

• Free DoorDash DashPass for a minimum of one year when you activate by Dec. 31, 2024
• Six free months of Instacart+ when you activate by July 31, 2024
• Up to $15 in Instacart statement credits each quarter through July 2024

The Citi Strata Premier ℠  Card has fewer benefits, but cardholders do receive $100 off a single hotel stay that costs $500 or more when booked through CitiTravel.com. You can use this perk once per calendar year.

The card also has several insurance benefits, including coverage for the following:

• Trip cancellation and interruption
• Lost or damaged luggage
• Rental cars (MasterRental®)

Winner : Chase Sapphire Preferred.

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Are rewards credit cards worth it?

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:

• Meet you wherever you are in your credit card journey to guide your information search and help you understand your options.
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Key takeaways

• Rewards credit cards can help you earn points, miles or cash back on your purchases for use toward statement credits, travel bookings and more.
• Rewards cards come in all shapes and sizes. Assess your spending habits and choose a card that suits your spending while earning rewards in categories that you prefer.
• If you have more pressing needs, such as paying off credit card debt, for example, you might consider alternative cards that don't offer rewards but feature long introductory APR offers.

A rewards credit card is exactly what it sounds like: a credit card that rewards you for your purchases. Used responsibly, a rewards credit card can help you save money on everything from travel bookings to Amazon purchases.

But not everybody knows how to maximize their credit card rewards or what a good rewards card can do for them. How do you earn a sign-up bonus ? What types of rewards cards can best suit your needs, and what are the best ways to redeem your rewards ? These questions are especially worth investigating if your credit card charges an annual fee.

Are rewards credit cards worth it? In most cases, yes — as long as you’re not carrying a balance (on which you will have to pay interest ) and any annual fees charged by the card are less than the value of the rewards you earn each year. Here’s what you need to consider when comparing your options.

Advantages of rewards cards

Is a rewards credit card worth it? It all depends on whether you’re able to use your rewards credit card responsibly — and that includes taking advantage of all of the rewards you earn .

In general, the biggest benefit of using a rewards card comes from the rewards you earn. The best travel rewards cards earn points or miles on every purchase, while cash back cards help you earn cash back on your everyday spending .

Many rewards cards also offer a welcome bonus . These bonuses can help you earn rewards simply for becoming a new cardmember and meeting a minimum spending requirement within a specified tie.

Earned rewards can be redeemed for valuable money-saving opportunities like travel bookings, statement credits and online shopping credits. Many rewards cards don’t charge an annual fee , although the most valuable cards do. There are a lot of different cards and rewards programs to choose from, so compare multiple cards and programs to find the right fit for your budget and spending habits.

Disadvantages of rewards cards

Although there are many advantages to using rewards cards, these types of cards also come with some potential disadvantages you’ll want to weigh before deciding whether they are worth it for you.

For example, it can be tempting to spend more than you can comfortably afford in order to max out your rewards, which might put you at financial risk. The same goes for a sign-up bonus.

Also, if you don’t actually redeem your rewards, you’re leaving money on the table. How much money depends on how much your rewards are actually worth, which can be hard to tell. Some redemption options provide less value for your rewards than others, so it can take time and effort to learn which rewards you should earn and how to maximize them.

Many of the best rewards cards charge an annual fee. They also require you to have good or excellent credit . Keep in mind that issuers will pull a hard inquiry on your credit every time you apply for a new card. Although one or two hard credit checks won’t do much damage to your credit score, it’s wise to know whether you’re likely to qualify prior to applying — especially if you plan to apply for other loans, like a mortgage or car loan, in the near future.

Should you get a rewards credit card?

Is it time to apply for a rewards credit card? If you don’t already have a good rewards card in your wallet, you may be leaving money on the table — especially if you travel frequently, buy a lot of groceries, pump a lot of gas or make a lot of retail purchases that can earn you points .

If your budget matches the average household budget , you’re probably spending about $5,700 per year on groceries and a little more than $3,600 a year on restaurants. By applying for one of the best credit cards for groceries , you could earn as much as 6 percent cash back on eligible supermarket purchases. Additionally, using one of the best credit cards for dining out means you could earn 3 percent to 5 percent cash back on restaurants and takeout.

There are a lot of high-earning rewards credit cards with specialized bonus categories, so take the time to research your options and choose the rewards card that might be best for you. If you’re planning a vacation in the near future, for example, you should consider a travel rewards card .

Rewards credit card alternatives

While most people will probably want a credit card that offers rewards, it’s worth noting that some non–rewards credit cards have their advantages.

As an example, let’s assume you have existing credit card debt. In that case, you might be better off prioritizing a card with a long  0 percent balance transfer offer over a card that earns rewards.

The Citi® Diamond Preferred® Card may be a good fit for a situation like this. This card doesn’t earn rewards, but it does offer a 0 percent intro APR for 12 months on purchases and 21 months on balance transfers. After that, the variable APR will be 18.24 percent to 28.99 percent, based on your creditworthiness. Balance transfers must be completed within four months of account opening to qualify for the promotional rate.

This makes the Citi Diamond Preferred one of the best balance transfer credit cards on the market — and likely a much better money saver (for someone with credit card debt) than a cash back card.

The bottom line

Though credit card rewards have their pros and cons, applying for a credit card that offers rewards is generally better than applying for a card that doesn’t. If you aren’t maximizing your credit card rewards , you’re missing out on money you can put toward travel bookings, statement credits and more.

If you’re on the hunt for the best rewards credit card for yourself, consider using Bankrate’s free CardMatch tool to find a perfect match for your credit history, shopping habits and financial goals.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

Consumer Expenditures 2022 News Release [PDF] , Bureau of Labor Statistics. Accessed on February 8, 2024.

How to decide which rewards credit card is best for you

Best Rewards Credit Cards of 2024

As rewards credit cards face regulation, what are the alternatives?

• Rewards credit cards are not for everyone.
• There are other ways to pay for travel, including debit cards, no-annual-fee credit cards and money transfer services.
• The government is concerned about rewards credit cards and is likely to regulate them soon.

Ronald Duben is ready to give up his credit card. He thinks there's something better out there – and there almost certainly is.

Duben has been dutifully shelling out $120 a year for his co-branded airline rewards card, which promises he'll get "free" flights if he spends enough money. It was a good deal at first. Once he collected about 60,000 points by late February, he could cash in his rewards for a flight to Asia.

Check out   Elliott Confidential , the newsletter the travel industry doesn't want you to read. Each issue is filled with breaking news, deep insights, and exclusive strategies for becoming a better traveler. But don't tell anyone!

But when Duben tried to redeem his loyalty points for an economy class ticket to Japan recently, he was stunned that his airline more than tripled the miles he had to pay. Then it asked him for another $375 in taxes and fees on top of the 200,000 points. 

So much for "free."

Learn more: Best travel insurance

"I feel like I'm deeply involved in a rip-off," said Duben, a retired chef from San Rafael, California, "and I want to get out."

It turns out there is a way out.

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Making a U-turn on rewards credit cards

Rewards credit cards – and especially those high-fee, high-interest mileage-earning credit cards – are not for everyone. You're probably just as likely to pay an absurdly high interest rate and add to that $1 trillion in credit card debt as you are to get a "free" airline ticket.

The government is concerned about these cards, too. Earlier this month, the Consumer Financial Protection Bureau (CFPB)  issued a report on rewards cards that identified multiple problems with these payment systems. Consumers complained that rewards are often devalued or denied even after they meet program terms. And consumers who carry revolving balances often pay more in interest and fees than they get back on rewards.

The CFPB and the Department of Transportation also held a hearing on rewards credit cards , a likely precursor to regulating these programs. 

So if this is the beginning of the end for rewards credit cards, then what's next?

Here are the alternatives to rewards cards

Read a travel blog or newspaper travel section, or look at a travel Instagram account, and you might think the only way to travel is with one of those high-fee travel cards. But there are other ways to pay:

▶ A debit card : A debit card or bank card deducts money directly from your bank account. No need to worry about spending more than you have because it usually won't let you overdraw. "Debit cards are a straightforward option," said Shawn Plummer, a financial expert and frequent traveler. "They're widely accepted and eliminate the risk of accumulating debt because they only allow you to spend what you have." 

Many debit cards even have travel benefits such as no currency conversion fees, but there are limits: Car rental companies and hotels may not accept a debit card. 

▶ A no-annual-fee, low-interest-rate credit card : You shouldn't pay an annual fee for your credit card. And if you do a little research, you can find a card with less than a 10 percent annual interest rate. Hint: Check with a credit union. Many of these cards also have all the travel benefits you need, including coverage for car rentals and medical evacuations – and no currency exchange fees. 

By the way, if you do want to pay a membership fee, try joining one of the warehouse clubs like Sam's or Costco. Peter Hoagland, a consultant from Warrenton, Va., swears by his Costco Visa. He said it's a no-nonsense payment system with relatively reasonable fees. 

"I use the card everywhere," said Hoagland.

▶ Money transfer services : A service like Revolut or Wise will allow you to transfer money to a company or individual, completely bypassing the credit card network. These companies are on the bleeding edge of digital banking. I visited Wise's headquarters while I was in London recently and really loved its plan to remove "all the friction" between you and your money. That means eliminating a lot of the high fees you've been paying for years.

Andy Abramson, a communications consultant from Las Vegas, uses both and likes the speed of transfer and the favorable exchange rates when moving dollars to another currency. 

"They're both incredible," he said.

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What is the future of payment systems for travelers?

Are rewards credit cards obsolete? Have they become bloated and inefficient, with their high swipe fees and exorbitant interest rates and empty promises of free tickets? Some industry watchers believe the answer is yes.

As an intermediate step, many travelers are switching to a debit card or a digital payment system. That allows them to lower their interest rates and make smarter decisions about their purchases instead of mindlessly spending money to accumulate points or giving all of their loyalty to one airline.

Financial experts see a better future just ahead. It's a place where digital peer-to-peer payment systems are used to transfer money at virtually no cost to you. In that future, cards are as antiquated as traveler's checks. All transactions happen on a phone with a tap and a biometric "OK." And loyalty programs have evolved into something more sophisticated than today's bait-and-switch cards that just make you spend more.

Will the government regulate rewards credit cards?

After this month's joint hearings with the CFPB and DOT, rewards credit cards are likely to be regulated soon. 

Even if regulators don't act, Congress could. A new bill called the Credit Card Competition Act could bring much-needed competition to credit cards. That would make rewards cards a little less generous and could bring some sobriety back to rewards programs.

It's about time. Rewards credit cards make promises they can't keep, bait you into spending more than you should, and ultimately reward only the airlines and credit card companies that issue trillions of often worthless points. The sooner we can find an alternative to reward credit cards, the better. The current system is completely unsustainable.

That's what Duben, the retired chef who wanted to go to Japan, did. He clicked on the United Airlines website and booked a regular ticket. He'll use his miles for another ticket and then close his rewards credit card for good.

Christopher Elliott  is an author, consumer advocate, and journalist. He founded  Elliott Advocacy , a nonprofit organization that helps solve consumer problems. He publishes  Elliott Confidential , a travel newsletter, and the  Elliott Report , a news site about customer service. If you need help with a consumer problem, you can  reach him here  or email him at  [email protected] .

The Key Points at the top of this article were created with the assistance of Artificial Intelligence (AI) and reviewed by a journalist before publication. No other parts of the article were generated using AI. Learn more .