Best Travel Rewards Credit Cards

Travel credit cards are a great way to gain rewards while you spend. With historically high rewards rates, it’s a great opportunity to consider how a travel rewards credit card could help you achieve your goals. there may be no better time for you to sign up for a new travel credit card than today. Travelers benefit when taking advantage of big sign-up bonuses, securing discounted cheap airfare, avoiding foreign and annual transaction fees, and gaining VIP access to airport lounges. See below for our top-rated cards, some of which are from our partners, and find the best choice for you.

Everything you need to know about travel rewards credit cards

They say travel is good for the soul, but it's not always good for your bank account -- unless, that is, you're traveling for free. And with all the excellent travel rewards credit cards on the market, it's easier than ever to get free airfare and hotel stays.

Although travel cards can be complicated, we have a crash course on them here. You'll learn how travel cards and the points they earn work, how to pick the right travel card for you, and how you can earn the most possible points once you've gotten a card.

Vetting and comparing credit cards before you apply is very important to ensure you're getting the best card for your lifestyle. Travel credit cards typically offer perks such as bonus miles on travel, discounts on global entry and TSA Pre-Check, and more. Although we used a range of factors to decide on the best travel cards, there are a few that played the biggest role:

Rewards rates and sign-up bonuses

A card that earns a lot of points will open up more travel opportunities for you. The best credit cards will have high rewards rates on your spending, big sign-up bonuses, or ideally, both of the above.

Reward redemption options

We looked for cards that make it easy to redeem your points for the travel that you want, while still getting a good value from those points in the process.

Travel benefits

These may include credits for certain types of travel purchases, access to airport lounges, or complimentary hotel perks, to name just a few.

Travel rewards credit cards earn points when you spend money, and you can then redeem those points for travel. There are two ways you’ll earn points:

Get points for everyday spending

Each time you buy something using your credit card, you’ll earn a certain number of points. Some travel cards earn a flat rate regardless of what the spending category is. Others earn different amounts based on the spending category of the purchase, such as travel and dining.

Receive big sign-up bonuses

Most popular travel cards include a sign-up bonus that you get if you meet a spending minimum. Sign-up bonuses are a popular incentive banks use to get new customers, and they’re the fastest way you can earn points.

Redeeming your travel rewards depends on the card company and the type of card you have.

Here are the ways that you can cash in your rewards:

Fixed-rate redemptions

You get a set value for your points and can apply them towards any travel purchase. If you have a card that gets you $0.01 per point on travel redemptions, then 30,000 points could pay for $300 in travel expenses. These redemptions are fast and easy, and you can always count on getting a consistent value for your points.

Booking award airline tickets and hotel stays with points

You book airfare or a hotel stay and pay the points price instead of the cash price. In some cases, points prices can offer a much better value than cash prices, like when a $1,000 business-class ticket only costs 30,000 points, getting you well over $0.03 per point.

You can book travel with points when you have a credit card with a specific airline or hotel. These are also an option when you have a card that lets you transfer your points to multiple airline and hotel transfer partners.

Both

It's getting more common for banks to offer points you can either redeem at a fixed rate or transfer to travel partners for award bookings. In fact, American Express, Capital One, Chase, and Citi all offer travel cards that include both redemption options.

Having multiple ways to redeem your points can help you book the travel you want and get the most value in the process, so several of our top travel cards are the ones that offer this.

If you’re on the fence about getting a travel card, there are three signs that this would be the right type of credit card for you.

You travel at least once per year

You’ll need to travel to make use of your rewards and any travel perks your credit card has. Otherwise, you won’t be able to use your card to its full potential and you’d be better off looking at cash-back cards.

Your credit score is good or excellent

For the most part, travel credit cards are only available to applicants who have at least a good credit score. It’s possible to get approved if you’re not quite there, but you may want to look at credit cards for fair credit or wait and build your credit score instead.

You pay your credit card bill in full

Interest on credit card balances will almost always cost you more than the travel rewards you earn. A credit card isn’t really a good choice for carrying a balance, but if you need to do that, low-interest credit cards are a much better option than travel cards.

The first thing to figure out when selecting a travel card is how much of an annual fee you’re willing to pay. Here’s an idea of what the typical annual fee ranges are for travel cards:

• No annual fee -- Most travel cards charge an annual fee, but there are exceptions.
  
• $50 to $100 -- This is the most popular price range for travel cards, and you can find plenty of quality options here that balance benefits with affordability.
  
• $200 and above -- At this price range, you have the premium credit cards with the longest lists of features. Despite the higher costs of these cards, they can be worth it for frequent travelers.

After that, you can check out the cards in that price range and see which ones have benefits that will work best for you. In particular, you’ll want to consider the following features:

• Rewards rates -- You may want a card that earns either a high flat-rate back on all your spending or has bonus categories that earn more rewards. If you’re interested in cards with bonus categories, then you’ll need to find one that earns bonus points in categories where you frequently spend money.
  
• Sign-up bonuses -- You’ll obviously want the most possible bonus points, but you should also check that you can meet the spending minimum on a card’s sign-up bonus.
  
• Point redemption options -- Whether you want to use your points for fixed-rate redemptions or award bookings, make sure that you can do so with the card you choose. If you want to make award bookings with a specific airline or hotel, then you’ll either want to get that company’s credit card or a card with points you can transfer to that company.

Once you’ve received your travel rewards credit card, you can get the most out of it in a few steps.

Spend enough to earn the sign-up bonus

One of the biggest mistakes with travel cards is failing to get a sign-up bonus and seeing tens of thousands of points go down the drain. Keep track of how much time you have left and how close you are to getting your bonus. You can always contact your card issuer to ask about this if you’re unsure.

Make sure to pay the statement balance every month

All that money you’re saving with travel rewards will be wiped out if you carry a balance and need to pay interest charges. You won’t incur any interest if you pay your statement balance every month.

Know and use your card’s travel perks

You can miss out on a lot of value if you don’t know what benefits your card offers. For example, many cards now offer a credit for a Global Entry membership that can save you all kinds of time at the airport, but you can only take advantage if you’re aware of that perk.

Put all your purchases on your credit card

Here’s a simple one -- when you have a travel card, stop paying with your debit card or cash. Those won’t earn you a thing back. It makes much more sense to pay with your credit card, earn your points, and then pay off your credit card when the bill is due.

Only use your points for travel redemptions

With some travel cards, you’ll have a plethora of options regarding how you use your points. The most important thing to remember about redemptions is that you should use your points exclusively for travel. Other types of redemptions, such as cash back or merchandise purchases in points, just don’t offer nearly as much bang for your buck (or in this case, your point).

To recap, here are the best travel rewards credit cards